GameStop is back in the headlines again after recent reports suggesting that it is developing an NFT platform that will be based on the Ethereum network.

The company has already launched a website highlighting an Ethereum contract for its upcoming NFT platform. The website invites industry leaders, designers, and developers to participate in the development. The new development is an interesting step for GameStop which attracted many retail traders and earned meme stock status used to execute a short squeeze against hedge funds.

The GameStop short squeeze may have encouraged the company’s latest direction. Many hedge funds had short positions on the stock because they saw no upside in the future. After all, games are now more conveniently available as digital downloads. Although the market’s GameStop frenzy earlier this year highlighted the power of retail traders, it did not end the company’s risk of going out of business.

The meme stock needs a new strategy and fortunately, blockchain technology might pave the way for an interesting future path for GameStop. The company’s stock has enjoyed significant gains since Monday when it traded as low as $179 and had already clocked $242 at the time of this press.

What GameStop’s venture into NFTs means and why it is fueling a strong price surge

The only information currently available on GameStop’s latest move into blockchain is that it is planning to develop an NFT platform. NFTs or non-fungibles are unique one-offs of digital assets and the concept has become quite popular in 2021 after one NFT sold for $69 million earlier this year. The technology behind digital assets and NFTs has opened up an entirely new world of possibilities especially for GameStop and the gaming industry in general.

It is still not clear how GameStop’s NFT platform will operate but there is already speculation that it will have something to do with the purchase and trading of in-game digital assets. For example, unique characters could be designed and owned in NFT form. The statement “Power to the players. Power to the creators. Power to the collectors” is available on the website, suggesting that it might focus on collectible digital assets.

Whatever the case, GameStop is among the first mainstream companies in the gaming industry to explore the potential of blockchain-based technologies. Its venture might unlock a new revenue stream for the company and help to usher in an entirely new approach to character customization in games.

There is also speculation that GameStop will launch a new digital token that might be integrated into in-game purchases. The jury is still out on a lot of the planned developments. Nevertheless, the stock price gains this week are an indicator that the announced NFT plans might be a game-changer for the company as far as growth is concerned.

GameStop is also recruiting developers with exceptional talent in python, react, and solidity to help create the NFT platform. It is also not surprising that the company has partnered with Ethereum, the most popular blockchain platform. GameStop’s latest announcement puts it on a strategic path to take advantage of the upcoming internet of value whose main highlight is the ability to own and trade digital assets via the internet.

The recent surge in the popularity of NFTs is already a good indicator that there is demand for digital assets on the internet. It is likely the main reason behind GameStop’s decision to pursue that direction. Digital art was surprisingly one of the first areas that benefited from the idea of NFTs. It also highlights the potential that GameStop’s platform will likely provide a way for creative talent to benefit by monetizing their content.