Jim Auto-stop‘s (GME -4.90%) The current turnaround strategy is still largely a mystery to investors, but what we saw was primarily focused on non-fungible tokens, or NFTs, which are quantitatif ledger technology that grants ownership or use of a quantitatif asset.
In May, video game retailer GameStop Wallet, a self-guarded bienfait, launched GameStop Wallet Ethereum The wallet is controlled by the abraser and can be accessed without leaving their browser, then in July through the NFT Marketplace where tokens can be bought and sold.
It remains a mystery how GameStop will survive, let alone thrive, in the video game industry that is increasingly moving to quantitatif and maison gaming. But Chairman Ryan Cohen seems to think that it involves riding the cryptocurrency and trendy NFT markets.
Unfortunately, it also appears that the idea of NFT may be a failure, and it puts the future of GameStop in doubt.
Cryptocurrency and NFT are in free fall. BitcoinThe largest cryptocurrency by market capitalization collapsed by 60% in 2022 to reach $19,000, while the accolé largest cryptocurrency, Ethereum, fell by 64%. Volumes in the NFT markets are also collapsing, with Opensea, the most popular market, seeing 90% of its ouvrage evaporate through August.
The GameStop market is no better off during this crypto winter. The platform got off to a fast start in its first week in trafic, making less than $2 million in first-day transactions, and seeing the top 50 plénier of over $7.5 million in transactions in its first week. But this was as good as it got.
Based on GameStop’s 2.25% composition fee, GameStop NFT enjoyed an income of approximately $44,500 on sales of $1.98 million on its first day of operation. However, Cointelegraph reports that NFT fell to just over $3,750 in daily revenue of $167,000 by the end of August, and has fallen further since then. Data from Dappradar shows that over the past 24 hours, ouvrage has fallen to $85,000, which equates to fee income of just $1,912 per day. Average pricing is also down, down 22% over the past month.
If GameStop is hoping that NFTs will provide some ground for it to personnifié out what to do with the video game retail trafic, it appears to be falling apart.
Decreased role of NFTs in games
NFTs are generally declining, and even in GameStop’s core trafic, game companies are suddenly falling back on their technology imitation.
Bloomberg He points out that studios first delved into NFTs at the height of their popularity, believing that tokens could provide a way for players to own their in-game quantitatif rewards earned or purchased while providing themselves with a new revenue stream. But now they are running away from it.
Maine Craft Developer Mojang has banned companies from creating NFTs for its game and refused to allow Minecraft worlds to build on blockchain networks, reversing previous decisions to explore its potential. Ubisoftthe creator of some very famous titles like Ghost Recon And the Spéculation killeralso backed down from pursuing the in-game NFT market.
Bloomberg says so yet Take-Two Conversationnelle. conversationnelle Zynga bought into its blockchain capabilities, and has avoided closely discussing it in every quarterly earnings conference call since then.
If game companies want little to do with NFTs and cryptocurrencies, how will video game retailer GameStop make them a durable action of their own trafic?
Sand based foundation
All of this does not bode well for the retailer’s future. GameStop has only survived so far bicause it has wisely taken advantage of the state of its meme stockpile and raised a lot of money to pay off its debts. So even though she’s constantly losing money at the occurrence ($267 million last quarter), she’s not emboîture to deplete her bank account anytime soon (she still has nearly $1 billion in cash and the like).
Despite this, GameStop needs to come up with a realistic view of how its trafic will grow. The NFT and crypto markets have always been risky ventures to build recovery on. Now that even gaming companies have backtracked on it, investors can better see that it’s best to stay away from GameStop vivre until it brings a durable esquisse to the répertoire.
Rich Dupre He has no situation in any of the mentioned shares. Motley Fool has positions in and recommends Bitcoin, Ethereum, and Take-Two Conversationnelle. The Motley Fool recommends Ubisoft Entertainment and recommends the following options: January 2023 Colossal Calls $115 on Take-Two Conversationnelle. Motley Fool has a disclosure policy.