Gamestop and FTX

One of the most well-known cryptocurrency exchanges, FTX, and the video game store, GameStop, have announced their partnership. GameStop and FTX will be promoting crypto and attracting new customers. GameStop said in a statement on Wednesday that the relationship would make it FTX’s “preferred retail partner in the United States” and allow it to introduce its customers to the FTX ecosystem, such as its marketplaces for digital assets.

The action follows GameStop’s recent collaboration with Immutable X to launch an NFT marketplace and a cryptocurrency wallet.

Stronger Push Toward Cryptocurrency

The market has been skeptical of Chairman Ryan Cohen’s decision to invest in cryptocurrency to turn the struggling gaming company’s fortunes around. Cohen, who founded the pet e-commerce site Chewy Inc., has decided to continue, citing gamers as one of the NFT sector’s most important target markets. This year, GameStop has increased its Web3 efforts.

It announced a non-fungible token (NFT) and Web3 gaming division in January. On July 11, it launched its NFT marketplace in collaboration with Ethereum scaling solution Immutable X. In January of this year, GameStop announced the release of a digital wallet designed to facilitate purchases and sales of non-fungible tokens (NFTs) within the marketplace it is developing for gamers and other users.

GameStop’s stock price skyrocketed last year after it became the focus of a social media-fueled trading frenzy. The collaboration between GameStop and FTX US strengthens the video game retailer’s cryptocurrency push. In addition, the FTX US transaction will prioritize internet marketing activities. The agreement will introduce GameStop customers to the FTX ecosystem, which includes its digital assets marketplace.

Stronger E-commerce and Marketing Efforts

According to the announcement, the collaboration will allow both organizations to engage in e-commerce and marketing efforts to strengthen their position in the rapidly developing crypto space. In addition, GameStop announced that it would begin carrying unique FTX gift cards in a few of its selected stores to strengthen its relationship with FTX.

The agreement’s primary goal is to bring FTX’s extensive service portfolio and digital asset market to GameStop’s large clientele. According to the official announcement, neither contracting party disclosed the agreement’s financial terms.

GameStop’s Financial Results

GameStop released the financial results for the second quarter of 2022 on the same day as the FTX US partnership. GameStop Corp stock rose after the video game retailer announced a partnership with FTX. Such a surge in stock prices signals that the business is progressing with its strategic change to non-fungible tokens even after reporting a fall in sales and a higher loss in the quarter.

According to the Q2 earnings report, GameStop’s net revenues fell 4% to $1.14 billion. That was less than the $1.28 billion predicted by experts on average. In contrast to the average forecast of 34 cents, the company’s net loss nearly doubled to $108.7 million, with a loss of 36 cents per share.

GameStop has not reported a quarterly profit since the end of 2021; and stepped up its Web3 efforts this year, launching an NFT, an NFT marketplace, a wallet, and a Web3 gaming business.

The GameStop NFT marketplace is a non-custodial Ethereum Layer-2 marketplace that allows users to connect their cryptocurrency wallets, including the recently launched GameStop wallet.

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