Video game retailer GameStop is planning to launch a marketplace for NFT tokens for gamers by the end of 2022. Will this ecosystem would be larger than Bitcoin?
The popular American chain of console and computer game stores GameStop has just hired more than 20 people for a new division that will focus on developing a market for non-fungible tokens (NFTs), The Wall Street Journal has reported, citing sources.
The company intends to develop a platform that allows users to buy, sell and exchange non-fungible tokens based on game elements. The market is expected to launch in late 2022.
According to the publication, GameStop's initiative aims to "improve overall financial performance in light of the impact of the COVID-19 pandemic at its outlets."
The WSJ has also said that the retailer is conducting negotiations with two cryptocurrency companies "to leverage their technology and jointly invest in blockchain games and NFTs."
It should be noted that the company's shares have registered an increase of 20% after the news was released.
Recall that in January 2021, the value of GameStop shares on the New York Stock Exchange shot up to $347.
NFTs may become bigger than Bitcoin, believes Kevin O'Leary
In a related development, O'Shares Investment Advisers CEO Kevin O'Leary has turned out to be a strong supporter of the NFT. In a recent interview with CNBC, he predicted that this ecosystem would be larger than Bitcoin. According to him, the digital representation of ownership of real-world items such as cars and designer items puts them in a better position for even greater growth.
"Over the next few years, we will see a lot of movement in authentication, insurance policies, and online property transfer taxes. All this will make the NFT a much larger and more liquid market than Bitcoin itself."
Bobby Ong believes that the comparison of NFT and Bitcoin is unfair
This position was challenged by CoinGecko co-founder and COO, Bobby Ong. According to him, it is unfair to compare Bitcoin, which is a single asset, to NFT, which is an entire sector. However, he did admit that there is plenty of room for NFT to grow, looking at its adoption the previous year.
O'Leary has taken conflicting positions on Bitcoin in the past. In 2019, he mentioned that Bitcoin is worthless.
"It is a useless currency. It's rubbish to me because you can't get in and out of it in large numbers".
Recently, however, he changed his position. He then considered Bitcoin as a very good hedge against rising inflation. He also revealed that nearly half of his written checks in the last six months are dedicated to cryptocurrency and blockchain ventures. He also added that he has some positions in Bitcoin, Solana, and Polygon. Among all, his largest position is Ethereum.
Many financial experts emphasize introducing cryptocurrency regulations to control their use just like any other financial instrument. According to O'Leary, this prevents money laundering and protects consumers from the risks associated with it. He also admitted that different countries or jurisdictions have different cryptocurrency policies. For this reason, it is important to consult countries or jurisdictions that have a more progressive policy.
He cited Canada as an example. Canada has approved the Bitcoin ETF. Countries like the United Arab Emirates and Switzerland are cryptocurrency-friendly and have a progressive policies.
"You must be optimistic and constructive. The flood of capital will come through sovereign and pension plans that do not yet exist."
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