The Crypto space has attracted investments from across the globe despite the difficulties in the form of the bearish market. Various companies have adopted crypto and blockchain technology to stay relevant in the changing arena. The case of the gaming industry is no different, and Gamestop Inc. is the latest addition.
The said company announced a partnership with FTX to ensure that its crypto presence is enhanced and it gets better opportunities. Though it has taken prior steps to make its place in the crypto world, the recent change is vital for its growth. The terms of the partnership haven’t been disclosed to the media and users.
Here is a brief overview of Gamestop’s decision to partner with FTX for enhanced services.
Expanding crypto space and gaming industry
The expansion of the global crypto space has compelled many companies to look for their place in it. Various big names have joined hands with crypto companies or launched their crypto ventures to serve their customers. Gamestop didn’t want to stay behind in the race as it saw a race for crypto. Gamestop is a known name in the gaming industry with considerable value.
The said company saw a considerable decline in its value the previous year. The result was an overhaul in management to ensure its languishing sales are revitalized. The enhancements were seen as its revenue increased because of its consistent social media presence. The following months didn’t prove good for Gamestop, as its shares saw a decline of 35 cents in its shares, according to Refinitiv IBES data.
The company’s chief financial officer was removed to revive the stocks of the company in the second quarter of 2022. The slowdown is not just for Gamestop; other gaming companies are also facing losses due to market changes. The demand for video games has slowed down because of increased inflation, pandemic highs, and economic downturns.
Partnership between Gamestop and FTX
As Gamestop tried various methods to revive the declining value of its stocks, it decided to partner with FTX. The decision has been mainly aimed at enhancing the lowering value of its stocks. According to its press release, it has partnered with FTX US. The partnership’s aim was described as introducing its customers to FTX community marketplaces for digital assets.
According to the company, Gamestop will be the preferred retail partner in the United States. There is no detail of the financial terms of this partnership disclosed to the customers. As Gamestop announced this partnership, its stocks rose 11% in value. The said company has seen a decline of 35% this year. Gamestop also began selling FTX gift cards at some of its stores after the partnership was forged.
The new partnership will give the company more opportunities in the decentralized world. The customers of Gamestop will also be able to access FTX marketplaces for digital assets. There are about 2,970 Gamestop stores in the US, which means that FTX has also availed a great opportunity for further expansion. The company’s NFT and Web Gaming division will also utilize this opportunity to strengthen themselves. The users of its wallet will also be able to take benefit of it in an easier manner.
Conclusion
Gamestop has announced a partnership with FTX US for enhanced services for customers. The mentioned company had previously announced its own wallet. The previous few months brought it continuous losses, and the recent move is a step to increase the falling value of its stocks. As the partnership was announced, an increase of 11% was seen in its value.
