GameStop to roll out a blockchain-based NFT marketplace by year-end

American video game retailer GameStop has partnered with Immutable X, a scaling solution for non-fungible tokens, to build a non-fungible token (NFT) marketplace. GameStop announced this news on February 3, noting that Immutable X would become a layer-2 partner and platform for its NFT marketplace, which is set to launch later this year.

According to the announcement, this deal also intends to create a $100.00 million (£73.74 million) fund in Immutable X’s IMX tokens. With these funds, the firms seek to offer grants to creators that focus on NFT content and technology. Additionally, the agreement’s terms state that Immutable X would offer GameStop up to $150.00 million (£110.65 million) in IMX tokens once it achieves certain milestones.

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To apply to become a content creator on GameStop’s NFT marketplace, creators from familiar with web3 and the metaverse, among other related sectors, should visit GameStop’s NFT marketplace website. The marketplace promises to bring power to players, creators, and collectors.

GameStop noted that it would reveal further details about the partnership with Immutable X on Form 8-K with the US Securities Exchange Commission (SEC).

While the company did not disclose why it chose to partner with Immutable X, it is likely because the scaling solution offers zero gas fees, instant trades, and carbon-neutral NFTs for marketplaces, games, and applications. Additionally, the platform’s APIs make it easy to build NFT businesses.

Turning to web3 to avoid crashing

This news comes after GameStop first revealed its NFT ambitions by launching a new division dedicated to cryptocurrency partnerships. The company initially hired 20 people to run this unit. Additionally, the firm started working on an online hub for video games and NFT trading.

Rumours of rolling out an Ethereum-based NFT marketplace first emerged in September last year, with GameStop’s Principal Engineer Jordan Holberg saying the company seeks to bridge the old and the new by connecting traditional e-commerce with the next generation of the blockchain.

GameStop’s obsession with web3 comes after members of Reddit group WallStreetBets orchestrated a short squeeze on the company’s stock, which was on a downward spiral. As a result, the stock surged to hit an all-time high of $483.00 (£355.81).

While this turnaround had nothing to do with the crypto space, SkyBridge Capital founder Anthony Scaramucci said the GameStop frenzy proved Bitcoin (BTC/USD) would work because a decentralized crowd managed to help the stock make a comeback despite leading hedge funds betting large sums of money against it.

Upon realizing the power of decentralization, the company turned to web3, hoping that this change would help it stay afloat.