GameStop saw a massive price jump after hours following the news of the company starting an NFT marketplace.
Community members suspect the price jump was due to FTDs that are finally being exercised.
So, what caused GameStop to have these price fluctuations after hours?
Be sure to leave a comment at the end of the article.
Welcome to Franknez.com – GameStop’s bullish news on its new NFT marketplace doesn’t have shareholders content. Retail investors expect larger upswings in the coming weeks.
Let’s get started!
GameStop is investing tens of millions of dollars in crypto-related companies that will allow them to develop games with blockchain technology, via ARS Technica.
It seems GameStop is joining AMC Entertainment getting involved in the crypto space, which in my opinion is a great way to take these two companies to the next level.
As the crypto space continues to puzzle traditional investors, GameStop, along with AMC Entertainment, have a chance at becoming extremely valuable in the long-term process of their growth.
GameStop NFT Marketplace
The news of GameStop’s NFT marketplace is not new, in fact it’s been mentioned since May of 2021.
However, it was only a teaser per say as the company was looking for engineers at the time to make this project a reality.
GameStop has now brought on 20 new hires to develop the NFT marketplace, where people can sell and trade NFTs and virtual in-game items, via Kotaku.
When will GameStop launch its NFT Marketplace?
GameStop is launching its NFT marketplace in late 2022.
One of GameStop’s direct competitors will be OpenSea, the NFT marketplace that now has a $13.3 billion valuation.
The companies’ approach towards the NFT and crypto space seems to be rather fitting.
What are your thoughts?
Leave a comment at the bottom of the article.
Could we see a collaboration between AMC and GameStop?
AMC Entertainment is currently using WAX, or the Worldwide Asset Exchange to distribute its NFTs.
WAX is an energy-efficient, ultra-low carbon footprint blockchain and the first certified carbon neutral, meaning it’s eco-friendly.
WAX is also the world’s leading blockchain, processing 15 million transactions daily.
AMC CEO, Adam Aron has thrown hints of reaching out to GameStop to see how they could collaborate in the future.
No official news of a collaboration has been published yet but with both companies going into the crypto space, this could be exactly what shareholders have been waiting for.
And if you can’t tell from my excitement in this video, the news of such collaboration would be bullish for both AMC and GameStop.
What do you think?
“Millions of Dollars Were Stuck in Limbo” (FTDs)
According to Business Insider, Bloomberg reported that $359 million worth of GME stock were stuck in limbo earlier last year.
More than 1 million GameStop shares were publicly deemed ‘failure-to-deliver’.
FTDs have been a massive problem for retail investors holding both AMC and GameStop shares.
Failure-to-delivers occur when sellers don’t have the shares to settle trades.
So, if there aren’t enough shares to settle, where are short sellers borrowing so many shares from to short GME stock?
The answer may lie in naked shorting and OTC trading.
Shareholders suspect GameStop’s price moves after hours were based on some FTDs settling from December’s batch.
What are your thoughts?
Was GameStop’s price moves based on FTDs settling, or on the bullish news confirming more movement in the NFT Marketplace?
Leave a comment below.
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