GameStop is all-in on cryptocurrency. The video game store announced Monday that it had developed its own self-custodial Ethereum digital wallet. The wallet will be available via a Google Chrome extension and will be used to purchase and sell NFTs on GameStop’s future NFT marketplace, which is set to launch by the end of July.
Nonfungible tokens, or NFTs, are digital assets such as photos, videos, and art that can be traced using blockchain technology. This year, a variety of corporations, like the NFL and Twitter, have embraced the technology, with some collectible items selling for hundreds of thousands of dollars to millions of dollars.
Self-custodial wallets simply provide the user with access to the wallet’s private digital key. Users don’t have to rely on an intermediary like Robinhood or PayPal to purchase and sell cryptocurrencies and NFTs because the key isn’t held anywhere else.
For its planned NFT marketplace, GameStop has teamed with blockchain company Immutable X. To aid the initiative, the firms plan to establish a $100 million fund that will provide grants to artists who create NFTs for GameStop’s marketplace.
Instead of dollars, the fund would pay artists in Immutable’s own cryptocurrency, IMX, which has lost a lot of value in the last year.
Last year, GameStop made headlines when its value skyrocketed when Reddit users banded together to buy the struggling gaming retailer’s stock. Although the frenzy is past, the fallout continues: After failing to rebound from the GameStop short squeeze in 2021, one hedge firm announced its closure last week.