Quick take:
- The $100 million fund will be distributed in Immutable X tokens.
- Immutable has agreed to pay GameStop up to $150 million if the NFT marketplace hits milestones.
- This comes as the game retailer tries to improve its financial performance.
GameStop and Australian blockchain startup Immutable X are joining forces to develop its NFT marketplace.
Both companies are planning to launch a $100 million grant programme in a bid to entice game developers to create NFTs for the marketplace. The fund will be distributed in Immutable X’s native token, IMX.
In addition to that, Immutable X has agreed to provide GameStop up to $150 million in IMX tokens if the game retailer hits certain milestones.
Through this partnership, Immutable X will also become a layer-2 partner and platform for GameStop and its NFT marketplace that is expected to launch later this year. Immutable X removes gas fees for minting NFTs and purchases carbon credits to offset blockchain carbon emissions.
In early January, the game retailer saw its stocks spike more than 26% after announcing its plans to launch an NFT marketplace. The company has also hired more than 20 employees to run a new division focused on NFT partnerships and cryptocurrency-related projects. Its careers page currently shows open job listings for software engineer roles for its NFT platform and blockchain team.
GameStop has seen a surge in its stock price over the last year following stock trading mania fueled by investors on the WallStreetBets subreddit. However, it hasn’t led to big improvements in the company’s finances. Despite growth in revenue, the company’s losses widened compared to the same period in the previous year.
After years of losses, GameStop made activist investor Ryan Cohen chairman of the company in June last year and replaced its team and board of directors with former Amazon and Chewy executives. Cohen has been lobbying for the retailer to focus on e-commerce.
While developments are being made in its plan to launch an NFT marketplace, GameStop shares have fallen about 50% in the past three months although they are still trading well above their 2020 prices before the trading frenzy began.
Currently, GameStop’s market capitalization is under $9 billion.
Founded in 2017 by CEO Robbie Ferguson, Immutable X has raised a total of about $85 million through its funding rounds. The company has been collaborating with gaming firms and building its NFT-based games Gods Unchained and Guild of Guardians.
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