GameStop fired its CEO Matt Furlong on June 7. Furlong joined in 2021 just before GameStop started the NFT Marketplace in June 2022 on an Ethereum layer-2 application. Users could buy, sell, trade and create NFTs using Ethereum compatible wallets.
According to reports, Furlong was on a 24- month contract which terminated just the gaming company announced its first quarter earnings.
It remains to be seen whether GameStop continues to offer NFTs and expand its offering. By August 2022, interest had declined and daily NFT fees collected plummeted from a peak of $44,500 in July to under $4000 in August.
In December, the company said NFTs would no longer be a priority. Despite this, it has partnered with Illuvium to offer 20,000 NFTs starting June 12.
What Are NFTs?
Nonfungible tokens make digital creations unique. But what are NFTs? Are NFTs a buy now?
Making digital copies is easy. Whether on a computer or on a mobile device, users can copy and paste, creating replicas with just a click of the mouse. These copies are also cheaper: When broken down, it is just simple classical economics where supply and demand determine the price. The more copies we make, the lower the price of each copy. The law applies as much to the real world as to the virtual world.
On the other hand, an original Renoir painting or a unique opera performance do not have copies and command a high price because they cannot be imitated. They are non-fungible.
So what happens when we want to make a digital object — digital art, digital awards, digital certificates — unique?
Non-fungible tokens are digital inventions that make digital creations unique. NFTs are digital certificates of authenticity. Due to the blockchain technology that underpins the digital assets, ownership rights are tamper-resistant and immutably recorded on a digital block.
NFTs can be traded on exchanges. Trading volume and total sales for the tokens, however, have plunged along with the crypto market.
NFT Use Cases
Most NFTs today run on the ethereum blockchain and have the programmable features of smart contracts. Since they are tokens generated digitally, they can be used to secure ownership of both tangible and intangible items. Besides artwork, collectibles and real estate, NFTs can also be generated for tweets and several other kinds of internet content.
NFT adoption will likely grow, though right now sales volume is low. Top NFTs such as CryptoPunks and Xmon may still command a huge price. But NFTs as a whole are yet to regain the momentum they had in 2021. However, as companies and government offices see new ways of using NFTs, the interest will likely go up, making them good buys.
