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GameStop to drop crypto efforts as Q3 losses near $95M

The gaming company has stopped its cryptocurrency-related focuses but is seemingly still pushing ahead with its NFT and blockchain plans.

Gaming retailer GameStop says it will no longer focus any efforts on cryptocurrencies, after amounting $94.7 million in net losses in the third quarter and laying off staff from its digital assets department.

On a Dec. 7 earnings call GameStop CEO, Matt Furlong, said it “proactively minimized exposure to cryptocurrency” over the year and “does not currently hold a material balance of any token,” adding:

“Although we continue to believe there is long-term potential for digital assets in the gaming world, we have not and will not risk meaningful stockholder capital in this space.”

Earlier this year the company said it was looking at crypto, along with nonfungible tokens (NFTs) and Web3 applications, as avenues for growth calling these spaces "increasingly relevant for gamers of the future."

Going forward it will shift focus to collectibles, gaming and pre-owned items.

Its moves in the NFT space are still seemingly going ahead as it says its “also pursuing, and plan to continue to pursue, other business and strategic initiatives associated with digital assets and blockchain technology,” according to a Dec. 7 filing with the Securities and Exchange Commission (SEC).

Cointelegraph contacted GameStop to confirm that it would continue efforts on its NFT marketplace but did not receive a response.

GameStop has pushed numerous Web3-related products, the most recent being its NFT marketplace that went live on ImmutableX, an Ethereum layer-2 blockchain, on Oct. 31 following a July public beta.

Prior to its NFT marketplace, in May the company launched a beta self-custody crypto wallet and beta NFT marketplace on Loopring in March, Loopring is another Ethereum-based layer-2 protocol.

It also partnered with the now bankrupt crypto exchange FTX US in September aimed at bringing more customers to crypto and working together on e-commerce and online marketing initiatives. It ended ties with the exchange on Nov. 11 soon after it filed for bankruptcy.

It’s Q3 losses slightly narrowed compared to the second quarter however, which saw losses of $108.7 million. It’s also a year-on-year improvement for GameStop, which posted a $105.4 million loss in Q3 2021.

Staff cuts reportedly hit crypto department

On Dec. 5 GameStop cut multiple staff in its third round of layoffs for 2022 which Furlong confirmed in the earnings call.

Earlier reports suggested that the team working on the company's blockchain and NFT projects was the most impacted, however, Furlong did not specify where the staff cuts were concentrated during the call. 

Earlier posts from people claiming to be former employees have shed some light. Daniel Williams, lead software engineer at GameStop wrote in a Dec. 5 LinkedIn post:

“Another big round of layoffs from GameStop currently in progress… E-commerce Product and Engineers... Lots of them.”

Related: The reason bots dominate crypto gaming? Cash-grubbing developers incentivize them

Other posts from those claiming to be affected by the cuts also appeared on LinkedIn at the time. Brandon Jenniges, a former iOS and blockchain engineer posted he “had a great time getting a deep dive into Ethereum and learning about many new things in the crypto space.”

“I and the rest of the mobile team were let go,” wrote former developer Christopher Fields.

In July, the company terminated its CFO Michael Recupero and a number of staff at its video game-focused magazine Game Informer.

‘Surgical removal’ of crypto will only weaken USD dominance, commentators say

GameStop NFT Marketplace Launches on Leading Ethereum (ETH) Layer-2 Blockchain

GameStop NFT Marketplace Launches on Leading Ethereum (ETH) Layer-2 Blockchain

An Ethereum-based layer-2 blockchain is announcing that GameStop’s marketplace for digital collectibles has officially launched and is now live on its platform. In a statement, ImmutableX says the American video game retailer’s non-fungible token (NFT) marketplace will give millions of GameStop players and GameStop Powerup Pro loyalty customers access to a wide array of web3 […]

The post GameStop NFT Marketplace Launches on Leading Ethereum (ETH) Layer-2 Blockchain appeared first on The Daily Hodl.

‘Surgical removal’ of crypto will only weaken USD dominance, commentators say

Gamestop NFT Marketplace Is Now Live on Immutable X, Market Features Web3 Games

Gamestop NFT Marketplace Is Now Live on Immutable X, Market Features Web3 GamesAfter announcing the non-fungible token (NFT) marketplace seven months ago, the American consumer electronics and gaming merchandise retailer, Gamestop, has officially launched the company’s NFT market on Immutable X. In addition to NFTs, Gamestop’s marketplace also features Web3 gaming with games like “Gods Unchained,” and the DC Comics NFT trading card game “Hro.” Gamestop Reveals […]

‘Surgical removal’ of crypto will only weaken USD dominance, commentators say

Nifty News: GameStop NFT market goes live, Hong Kong’s NFT concept and more

The latest Web3 offering from GameStop sees the official launch of its NFT market, and the Hong Kong government is testing a proof-of-concept NFT at a convention.

The nonfungible token (NFT) marketplace for American video game retailer GameStop has officially gone live on Ethereum (ETH) layer 2 blockchain ImmutableX, all part of the latest Web3 push from the gaming retailer. 

The pair first partnered in February to build the marketplace offering a $100 million grant for NFT content creators and tech developers before a public beta of the NFT marketplace debuted in July.

With the Oct. 31 announcement of the full launch, GameStop’s market will allow for popular Web3 games on ImmutableX such as the role-playing game Illuvium and Gods Unchained to be accessed by users.

Gamestop has worked to launch a series of Web3-powered products over the past year with a beta self-custody crypto wallet released in May that integrates with its NFT marketplace.

In March the retailer also launched its first beta NFT marketplace on Loopring, an Ethereum-based layer-2 protocol.

Most recently in September, GameStop announced a partnership with FTX US aimed at bringing more customers to crypto and working together on e-commerce and online marketing initiatives.

Hong Kong’s proof of concept NFTs

The Hong Kong government on Oct. 31 released a policy statement that set out its stance on virtual assets and detailed its related pilot projects, one of which involved NFTs.

Its NFT-based project is a proof of concept to promote the usage of NFTs with the government Financial Services and the Treasury Bureau (FSTB) and foreign investment department InvestHK issuing NFTs at their flagship Hong Kong Fintech Week event.

The NFT serves as proof of attendance for the conference-goers with the statement saying it's a “digital badge and memento using blockchain technology in celebration of their participation”.

The NFT can also be used to create an Augmented Reality (AR) avatar “to experience the Metaverse” while at the event and holders will receive a discount on tickets for the event in 2023.

Although it's not mentioned what blockchain the NFTs are minted on they can be stored in a crypto wallet, or for those who are without a wallet, can be stored as what the statement calls an “NFT-to-be” with a user storing it on an email address until they create a digital wallet.

Hong Kong Fintech Week kicked off on Oct. 31 and sees speakers from a range of Web3 firms including Yat Siu, co-founder of Animoca Brands, Sam Bankman-Fried, co-founder of FTX, and Sebastien Borget, co-founder of The Sandbox metaverse and others.

Art Gobblers makes over $20M hours after launch

NFT project “Art Gobblers” created by Justin Roiland, the co-creator of the popular animated show Rick and Morty, has seen nearly $20.5 million in ETH volumes just seven hours after launch.

The project is a collaboration between Roiland and venture capital firm Paradigm, and describes itself as an “experimental decentralized art factory.”

According to Blur data, the project is seeing strong launch success with 12,906 ETH in volume at the time of writing.

According to a Paradigm overview, the Art Gobblers ecosystem is intended to work by financially incentivizing artists and collectors in a feedback loop for both to contribute to the project, either with better art, or more money.

A diagram explaining the intention of the Art Gobblers ecosystem. Image: Paradigm

Artists create a drawing using the websites tool which can then be turned into an NFT provided they have enough native tokens called GOO, these NFTs can then be “eaten” by an Art Gobbler which will store the artwork in its “belly gallery” with the NFT artwork associated to that Gobbler on-chain.

The project also enacts other deflationary measures such as restricting the amount of NFTs that can be minted and mechanisms that automatically adjust prices in coordination with an issuance schedule.

The initial mint saw 2,000 “Gobblers” minted with the community expected to spend GOO tokens to mint a further 8,000 over the next 10 years.

Cardano NFTs hit third place for trading volume

Cardano (ADA) NFTs surged in trading volume over the past month placing the blockchain in third place according to an Oct. 27 report by analytics platform DappRadar.

The report said in the last 30 days Cardano’s NFT volume reached $191 million bringing it to the third-largest NFT protocol behind Ethereum and Solana (SOL).

Related: An introduction to decentralized NFT catalogs

The blockchain’s popular NFT marketplace JPG Store saw a 40% increase in trading volume in the last 30 days also which reached a value of $11.2 million.

DappRadar attributes the surge to the blockchain’s Vasil hard fork upgrade that went live on Sep. 22 which brought with it increased efficiency for its smart contracts allowing decentralized applications to deploy and run at lower costs.

More Nifty News:

American National Basketball League (NBA) athlete Steph Curry filed a trademark application for a so-called “Curryverse” that could see the basketball champion granted exclusive rights for, among other things, “metaversal appearances.”

A Japanese city has adopted a metaverse-based school to try to get students to attend classes with students able to explore a virtual campus and classrooms, although the students must gain permission from their real school principals before attending.

‘Surgical removal’ of crypto will only weaken USD dominance, commentators say

GameStop doubles down on crypto amid a new partnership with FTX US

After launching an NFT marketplace and wallet with the help of Immutable X, GameStop is continuing its push into crypto following a partnership with FTX.

Gaming retailer GameStop is partnering with United States crypto exchange FTX US to bring more customers to crypto and work together on online marketing initiatives. 

In a Sept. 7 statement, the gaming retailer noted that the new partnership will introduce GameStop’s customers into the FTX ecosystem, including its marketplaces for digital assets, while also seeing the retailer become FTX’s “preferred retail partner in the United States.”

The partnership will also see certain GameStop retail stores carrying FTX gift cards. As of Aug. 31, there are 2,970 GameStop stores across the United States.

In its Q2 earnings call, GameStop CEO Matt Furlong said the new deal is aimed at establishing something “unique” in the retail space.

The deal we just announced with FTX is a by-product of our commerce and blockchain team, working hand-in-hand together to establish something unique in the retail world.

GameStop did not disclose the financial terms of the partnership in its statement.

News of the new partnership came on the same day that GameStop released its financial results for the quarter that ended July 30, 2022.

Despite GameStop reporting a nearly 4% decline in net sales to $1.14 billion in the quarter, shares in GameStop managed to rise nearly 12% in after-hours trading following the news, reaching $26.84 per share.

GameStop has significantly ramped up its Web3 efforts this year after unveiling an NFT and Web3 gaming division in January, as well as the launch of its NFT marketplace on Jul. 11 in partnership with Ethereum (ETH) scaling solution Immutable X.

Furlong noted during the earnings call that the launch of its marketplace “supports GameStop’s pursuit of long-term growth in the cryptocurrency, NFT and Web3 gaming verticals” which they expect to be increasingly important for gamers and collectors.

The marketplace is a “non-custodial, Ethereum Layer 2-based marketplace” which allows users to connect their own digital asset wallets, like the recently launched GameStop Wallet.

Related: GameStop NFT daily fee revenue plunges under $4K as gloom infects markets

GameStop noted that sales attributable to its digital collectibles were $223.2 million in the quarter, representing a nearly 26% increase compared to the $177.2 million worth of sales in the prior year period.

According to DappRadar, the marketplace has seen a volume of $21.26 million traded on it since its launch. Activity on the marketplace has slowed dramatically since its launch, with only $922,350 worth of activity occurring on the marketplace within the last seven days.

‘Surgical removal’ of crypto will only weaken USD dominance, commentators say

Nifty News: BAYC hodler loses 100 ETH in ‘joke’ domain sale gone wrong

Nickelodeon’s sell-out NFT drop has surged to second place on OpenSea’s 24-hour sales volume chart, and former Simpson’s animator Erick Tran is working on an animated NFT series.

A major Bored Ape Yacht Club (BAYC) NFT hodler lost 100 Ether (ETH), worth $150,000 as a result of a joke bid on his own registered Ethereum Name Service (ENS) domain.

The NFT whale, who owns 57 BAYC NFTs and goes by @franklinisbored on Twitter, minted the ENS domain “stop-doing-fake-bids-its-honestly-lame-my-guy.eth” using an alternate wallet on July 20.

The move was a part of a meme discussed with other NFT collectors in the community in which he was attempting to trigger the EnsBidsBot account to tweet about a hefty 100 ETH bid on an ENS domain, essentially to mock the purpose of such Twitter accounts.

However, after his ENS domain actually got a bid of 1.9 ETH ($2,900), @franklinisbored promptly accepted the bid but forgot to retract the 100 ETH bid he had placed beforehand.

Recounting the move on Twitter, he highlighted the ridiculousness of the situation by noting that “this is a mistake that I can’t imagine anyone else putting in the effort to make.”

“I was celebrating my joke of a domain sale, sharing the spoils, but in a dream of greed, forgot to cancel my own bid of 100 ETH to buy it back. This will be the joke and bag fumble of the century. I deserve all of the jokes and criticism.”

ENS is a blockchain naming protocol that enables users to mint names as ERC-721 tokens that can link to crypto wallets, and has become a handy tool for removing the need to share lengthy automated wallet address ids.

Nickelodeon’s successful NFT drop

The first plunge into the NFT space from beloved children’s TV show developer Nickelodeon has gone off with a bang, with trading volumes surging after the project sold out all of its 10,000 NFT avatars this week.

The drop went live on July 19 and consists of 10,000 NFTs depicting 12 different characters from the Rugrats and Hey Arnold! with randomized and unique traits. The collectibles were sold for $50 a pop, but the floor price on OpenSea has since risen to 0.29 ETH ($440).

Over the past 24 hours, Nickelodeon’s NFTs have generated the second largest amount of trading volume out of any project listed on OpenSea at 1,066.05 ETH ($1.6 million).

GameStop NFT surges past Coinbase NFT

GameStop’s NFT marketplace launch has been a relative success, with the platform generating more than double the total amount of sales volume of Coinbase NFT since its launch on July 11.

According to data from GameStop NFT’s website and compiled by Cointelegraph, the platform has generated more than $8.6 million worth of NFT sales so far.

In comparison, Coinbase’s muchly anticipated NFT marketplace has generated just $3.58 million despite launching in May. Notably, GameStop also charges a 2.25% fee on all NFT sales, while Coinbase is yet to introduce fees to the platform.

GameStop NFT has a long way to go to catch industry leader OpenSea however, with the platform generating $22.9 million in just the past 24 hours alone.

At the time of writing, two projects on GameStop NFT have generated more than $1 million worth of sales volume in MetaBoy and Cyber Crew [C4] with $2 million and $1.59 million apiece.

Simpsons animator launching NFT-based series

Former animator of iconic cartoon series The Simpsons, Erick Tran has partnered up with blockchain-based Film and TV production firm Mogul Productions to launch an NFT-based animated series inspired by the history of Hollywood.

The show will be called The Mogies and it will be accompanied by a collection of 1,923 NFTs, in a nod to the 100th anniversary next year of the Hollywood sign being erected. Each Mogie NFT will depict a parodied version of a famous Hollywood celeb, and holders of the tokens will be granted IP rights to the content depicted in their NFT.

Tran and his team at the CHAVVO studio are working on the series, and the story is set to follow the stories of the parodied icons as they make their way through Hollywood. The project will also see the launch of the exclusive Mogieland Metaverse for NFT hodlers, who will gain access to benefits such as virtual red carpet events and behind-the-scenes content.

The Mogies: Mogul Productions/Chavvo Studios

Related: NFT and Islamic education: A new frontier to teach religion?

Other Nifty News:

On Wednesday, Minecraft's developer Mojang Studios said that it would be excluding the integration of NFTs, alongside blockchain technology as a whole, in its popular namesake game.

The United States Office of Government Ethics (OGE) issued a legal advisory recommending various instances when senior government officials are required to disclose their investments in NFTs.

‘Surgical removal’ of crypto will only weaken USD dominance, commentators say

GameStop NFT Marketplace Launches Beta, Nearly Doubles Total Coinbase NFT Ethereum Sales in Just Two Days

GameStop NFT Marketplace Launches Beta, Nearly Doubles Total Coinbase NFT Ethereum Sales in Just Two Days

Retail giant GameStop is launching the beta version of its non-fungible token (NFT) marketplace, already outpacing one prominent competitor. Though GameStop released its NFT marketplace just two days ago, it has already nearly doubled the total amount of Ethereum (ETH) NFT sold over Coinbase’s NFT marketplace, which launched months ago. According to data from GameStop, […]

The post GameStop NFT Marketplace Launches Beta, Nearly Doubles Total Coinbase NFT Ethereum Sales in Just Two Days appeared first on The Daily Hodl.

‘Surgical removal’ of crypto will only weaken USD dominance, commentators say

Nifty News: GameStop NFT’s first day, Limewire trends and game dev attacks!

Video game developer Mark Venturelli launched a surprise attack on NFTs at a Brazilian gaming event, and Limewire is trending again following its NFT marketplace launch.

GameStop’s new NFT marketplace took home roughly $44,500 from transaction fees in the first 24 hours after it launched via a public beta on Monday.

GameStop NFT reportedly generated around $1.98 million worth of NFT sales on its first full day of business. As the platform charges a 2.25% fee on NFT sales, this equates to roughly $44,500 worth of fees.

While that sum may seem underwhelming, considering it would represent just 0.27% of GameStop’s daily revenue for 2021, it depends on your perspective. According to gaming news outlet Kotaku, GameStop had 4,816 stores across the U.S. at the start of 2021, which on average accounted for $3,426 worth of daily net sales for the company.

To provide further contrast, despite much anticipation in the lead-up to its launch in May, Coinbase NFT generated just $75,000 worth of NFT sales on its first day, and took roughly a month to generate $1 million worth of sales volume. Coinbase NFT also offered zero fees to attract new users that month.

GameStop NFT, which is based on Ethereum Layer 2 Loopring, is currently home to a long list of new and unknown NFT projects. However, it will soon be home to several projects from Ethereum Layer 2 scaling solution, Immutable X such as Gods Unchained, and Guild of Guardians. The duo partnered back in February to develop NFT games together.

At this stage, the MetaBoy NFT project depicting animated GameBoy-like console avatars is the marketplace’s top-selling collection so far, and has generated 989.597 ETH worth of volume, or $1.1 million at current prices.

Top 10 selling projects: GameStop NFT

When game devs attack: ‘Why NFTs are a nightmare’

Video game developer Mark Venturelli launched a surprise attack on NFTs during Brazil's International Games Festival on Friday. The event was sponsored by multiple NFT/blockchain companies such as Lakea and Ripio.

Venturelli, known for his work on Chroma Squad was penciled in to provide a virtual presentation on the future of gaming, however after introducing himself he promptly switched gears by launching into a tirade about “why NFTs are a nightmare.”

Venturelli’s presentation, which also has an English version, essentially argues that the introduction of speculative economic activity via NFTs will end up ruining the experience for people who just want to play games for fun.

During an interview with PC Gamer on July 11, Venturelli said:

"What's actually going to happen is that organized groups are going to operate and scale with ever-diminishing margins, and just push out everybody else. Because that's what happens. If you play EVE Online or Runescape, or any other game that simulates economy, that's what happens.”

“Organized groups are going to fucking crush you. What actually is going to happen is that if you just naively play a game and have fun—imagine that—then you want to sell your stuff, your stuff is not going to be worth anything,” he added.

Tony Hawk drops in… to the Metaverse

Skateboarding icon Tony Hawk has partnered up with The Sandbox to build the “biggest skatepark” in the Metaverse.

The move was announced on July 13, and early previews show users socializing at Hawk’s skatepark and the ability to build customized courses their avatars can skate around.

Specifics are sparse at this stage, but Hawk noted that it will be the “biggest skatepark” to hit the Metaverse. The deal marks another notable mainstream partnership for The Sandbox this week, after Playboy announced that it was launching the MetaMansion on the platform.

Limewire is back with a bang

Limewire, the brand famous for providing file sharing/pirated music between 2000 and 2010, is trending on Twitter this week following its relaunch as a music and entertainment focused NFT platform.

The platform launched on July 7 and has nothing to do with the torrent software apart from purchasing the rights to use the name. It has partnered with iconic musicians from the 2000’s such as Soulja Boy to spread the word.

Many people on Twitter have since had fun pointing out the irony of Limewire going from an music pirating platform, to selling NFTs in which their artwork can easily be “stolen” via a right-click and save. Limewire has joined in on the fun however by retweeting such memes.

Related: UK court allows lawsuit to be delivered via NFT

Other Nifty News:

Blockchain analytics service Nansen published its NFT Indexes Report for the second quarter of 2022, with the data showing June recorded the lowest figure of the calendar year despite buyers remaining consistent.

China's biggest city Shanghai officially intends to boost the development of innovations such as blockchain, NFTs, the Metaverse and Web3 during its next five-year plan.

‘Surgical removal’ of crypto will only weaken USD dominance, commentators say