Meme-stock GameStop (NYSE: GME) recently announced it will soon collaborate with cryptocurrency exchange FTX in effort to expand its NFT marketplace. Although both companies have not yet disclosed the extent of the partnership, according to a press release, "the partnership is intended to introduce more GameStop customers to FTX's community and its marketplaces for digital assets."
This will be the first time that GameStop ever approaches the world of cryptocurrency, which will involve the introduction of an NFT marketplace as well as its own cryptocurrency wallet. One significant part of the collaboration between GameStop and FTX is that GameStop will begin to carry FTX gift cards in certain store locations.
There are a variety of reactions that this collaboration has brought about. "The FTX partnership is unlikely to yield meaningful revenue or profit, but it sounds good, so that's a positive," Wedbush analyst Michael Pachter said in a statement.
GameStop, through its collaboration with FTX, is highly focused on the field of cryptocurrency, no matter how successful or unsuccessful it proves to be. FTX has recently attempted to collaborate with many other companies, such as Reddit or the National Football League's annual Super Bowl. GameStop is still struggling to seek ultimate achievement, but it hopes to establish some type of success through this newfound connection with FTX.
"Our path to becoming a more diversified and tech-centric business is one that obviously carries risk and will take time," GameStop CEO Matt Furlong said. "This said, we believe GameStop is a much stronger business than it was 18 months ago."
These days, GameStop is more occupied with making more income, coming out with one-of-a-kind items, and placing investments in its stores. It has also decided to decreases the overall prices of its products by around 14%.
"We're going to retain a strong focus on cost containment and continue promoting an ownership mentality across the organization," Furlong said.
FTX, which had been founded by billionaire Sam Bankman-Fried, more recently became a lender of cryptocurrency firms. Lately, the company has observed great variances in value, from $19.39 to $63.92 per share. Its value has recently declined by 36%, which makes it total market valuation about $7.31 billion.