GameStop jumps to report on NFT Trading Hub, Crypto Pact

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GameStop’s stock rebounded on Friday after a report that the video game retailer plans to expand its non-fungible tokens (NFTs) marketplace and partner with crypto firms.

The company’s stocks soared last year as it was at the center of a battle between retail investors, who coordinate on online forums, and Wall Street hedge funds, which were short. Most of the population has decreased since mid-November.

On Friday, GameStop jumped 7.3 percent to $ 140.62 (about 10,440 rupees) after reports late Thursday that the company would create an online hub for trading NFTs against virtual game collectors and partnering with cryptocurrencies .

A source familiar with the matter told Reuters about the GameStop plans reported by the Wall Street Journal.

GameStop declined to comment on the reports.

NFTs, using blockchain to track ownership of digital items such as pictures and videos, became increasingly popular in 2021, and many became confused about why so much money was being spent on copyable digital items that did not physically exist.

Highly volatile crypto assets have plummeted in recent months, with Bitcoin falling to more than a three-month low of $ 42,001.97 (about $ 31.18), a decrease of about 38 percent from its all-time high of $ 69,000. $ 51.21) corresponds to November. Bitcoin price in India was Rs. 33.92 lakh at 11:15 am IST on January 8th.

Ether used to purchase NFTs has fallen to $ 3,219.77 (roughly Rs. 2.39 lakh), a level last hit in early October. The price of Ether in India on January 8th at 11:15 am IST was Rs. 2.6 lakh.

“Meme stocks are more speculative than fundamental, and cryptos are also less speculative to a certain extent … too much exposure to cryptos could affect these companies’ balance sheets,” warned Mirabaud analyst Neil Campling.

Short selling against GameStop rose about 1 million shares in the past 30 days to 8.4 million, which is now worth $ 1.11 billion (about Rs.8,240 billion) and 13 percent of GameStop’s free float, according to data from S3 Partners.

Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners, said Friday’s share price was unlikely to be a short covering rally.

“First, we’d have to wipe out recent mark-to-market gains on the short side, which means we’re going back to levels in the stock price range of $ 170-200 (roughly Rs 12,600-14,800),” for it to be comes to a short squeeze, said Dusanivsky.

© Thomson Reuters 2021.

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