GameStop (GME) shares rose more than 20% in after hours trading on news that the video game retailer plans to create a marketplace for non-fungible tokens (NFTs).
GameStop also plans to establish cryptocurrency partnerships to create games and items for the marketplace, according to the media reports.
GameStop, which has been at the center of a retail trader frenzy over the past year, will expand into one of the most hyped sectors in technology. OpenSea, the best-known NFT marketplace, was recently valued at $13.3 billion U.S. by investors.
NFTs are a kind of technology that allows proof of ownership of digital goods to be stored on a blockchain, often Ethereum. NFT prices have risen in recent months driven by enthusiasm from cryptocurrency holders about the potential for the technology.
GameStop’s marketplace will focus on virtual video game products such as character outfits and weapons, according to the news reports.
At its closing price yesterday (January 6), GameStop stock was down over 59% from its all-time high reached in January 2021
