GameStop Lands FTX Partnership in Mega Deal to Onboard Masses to Web3

Amid rising income losses GameStop has announced a partnership with FTX to onboard masses to web3.
Image Source: Wikimedia

Quick take:

  • GameStop has announced a partnership with FTX US to onboard digital asset traders to the crypto exchange platform.
  • The game retailer is looking for alternative income channels to cushion itself from deepening losses.
  • The company reported its most recent quarterly results on Wednesday posting a loss of $108.7 million.

GameStop has announced a new partnership with FTX. The company’s new collaboration comes at the back of another disappointing quarter after announcing a net loss of $108.7 million. GameStop’s revenue also declined to $1.14 billion down from $1.18 billion in the same quarter a year ago.

Commenting on the partnership, GameStop chief executive officer Matt Furlong said: “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.”

The two companies are looking to capitalise on GameStop’s exposure to mainstream gaming to onboard masses to web3. 

Dubbed the next iteration of the internet, Web3 is a next-gen web technology that leverages emerging technologies like artificial intelligence, blockchain technology, decentralised apps, and augmented & virtual reality devices to support immersive interactions in 3D virtual spaces.

According to the announcement, GameStop will introduce its customers to FTX’s product line, which includes NFT marketplaces, a crypto exchange platform, and the newly launched stock trading platform, among others.

GameStop teamed up with Layer 2 ethereum scaling protocol Immutable X to launch its own NFT marketplace, which has since grown to surpass Coinbase NFT in transaction volume.

“The launch of our NFT marketplace supports GameStop’s long-term growth in the cryptocurrency, NFT and Web3 gaming verticals, all of which we expect to be increasingly relevant for the collectors and gamers of the future,” Furlong added.

The agreement also indicates that GameStop will begin carrying FTX gift cards in some stores.

GameStop invested heavily in web3 amid the NFT and metaverse craze, which began last year. However, given the recent market downturn, those investments are yet to pay off, with the company generating around US$443,400 in fees from its NFT platform, which surpassed 500 live collections.

After its NFT marketplace launch in July, GameStop stated that one of the driving factors was because it expects web3 to play a major role in its next growth phase.

Stay up to date:

Previous Post

Former Meta Executives Raise $300M in Series B for Mysten Labs to Power Web3 Apps

Next Post

Dropp Group Buys Phly for $25M to Create World’s First ‘Phygital’ Metaverse

Related Posts