GameStop is set to enter nonfungible tokens
(NFTs) and cryptocurrency markets by launching a new division, a source
familiar with the matter said on Thursday. As the news broke out the video game
retailer’s shares surged by 27 per cent in extended trading.

Also Read: GameStop mania severely tested market system, says US regulator

GameStop, however, has not yet revealed
anything about its plans. It was The Wall Street Journal who first reported the
news citing people familiar with the matter. The video game retailer is
undergoing a revamp, with Chairman Ryan Cohen hiring executives from companies
including Amazon to turn GameStop away from brick-and-mortar and toward
e-commerce.

Also Read: Robinhood confidentially files for IPO: Reports

The report also suggested that GameStop,
which has been at the centre of a retail trader frenzy, will expand into one of
the most hyped sectors in technology. OpenSea, the best-known NFT marketplace,
was recently valued at $13.3 billion by investors.

GameStop has asked its select game
developers and publishers to list NFTs on its marketplace when it launches
later this year, the WSJ report stated.

Also Read: GameStop shares trade in red as it posts lower-than-expected earnings

What is NFT?

An NFT is a digital asset that exists on a
blockchain, a record of transactions kept on networked computers. The
blockchain is a public ledger that allows anyone to verify the NFT’s
authenticity and who owns it.

Also Read: Wall Street update: Weeks after GameStop saga, company stocks rise again

The retailer has hired more than 20 people
to run the unit that is building an online hub for buying, selling and trading
NFTs of virtual videogame collectables such as avatar outfits and weapons,
according to the WSJ report.

Also Read: Comeback: GameStop jump 100%, halted twice

GameStop launched its NFT website last year
and has been inviting creators to join the platform. The company has also been
at the forefront of the “meme” stock trading frenzy last year, in which retail
investors hyped stocks on news site Reddit and brokerage site Robinhood, a blow
to several hedge funds that bet the stocks would tumble.