Video game retailer GameStop will set up a division to develop a marketplace for non-fungible tokens (NFTs) and establish cryptocurrency partnerships, according to people familiar with the matter. Shares of the video game retailer jumped 27% in after-hours trading on Thursday on the news.
GameStop is currently undergoing a restructuring, and chairman Ryan Cohen is poaching executives from companies like Amazon to help it transition from traditional retail to e-commerce.
When GameStop launches the online marketplace later this year, the company requires some game developers and publishers to list NFTs on its marketplace. NFT is a digital asset in the form of a blockchain, a transaction record recorded on a networked computer. The blockchain acts as a public ledger, allowing anyone to verify the authenticity and ownership of NFTs.
GameStop employs more than 20 people to run the division, which is responsible for building an online hub to buy, sell and trade NFTs for virtual video game props such as game clothing and weapons. GameStop launched its own NFT website last year and has been inviting creators to join the platform.
The company’s stock was the focus of a “retail vs. Wall Street” last year. At the time, a large number of retail investors were hyping some stocks on news sites Reddit and Robinhood, causing heavy losses for hedge funds that shorted these stocks.