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GME Stock Surges 9% on Meme Momentum, Loopring NFT Speculation

InvestorPlace - Stock Market News, Stock Advice & Trading Tips The leak of a potential partnership between GameStop and Loopring could be behind GME stock's rise as both names prepare...

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This story originally appeared on InvestorPlace

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Investorplace.com - InvestorPlace

If you believe recent, leak-based sources, the revolution of gaming might finally be upon us and it seems GameStop (NYSE:GME) is leading the way. The video game retailer saw its shares gain 9% today, and although some sources have pointed to the departure of its COO as a cause for the momentum, there may be a much more important development at play. This development speaks not only to GME stock, but to non-fungible token (NFT) markets as well.

Retailers walk past a GameStop (GME stock) store in New York City, New York.
Source: Northfoto / Shutterstock.com

The Next GME Stock Catalyst

It may not sound like news that GME stock is up by more than 9% today, but the possible reason behind it absolutely does.

On Oct. 22, GMEdd.com reported that both Gamestop and Layer-2 scaling protocol Loopring (CCC:LRC-USD) were at work on confidential NFT projects that were very similar in nature. According to the site, “glaring evidence” points toward a partnership between the two. A week later, the site reported that the latter’s GitHub repository had leaked code confirming that a “highly speculative” partnership was in effect.

The site also reports that GameStop is advertising jobs for software engineers to work on both NFT platforms and blockchain gaming as well as in the Web3 space. A LinkedIn job posting confirms that the company is seeking a Head of Web3 Gaming.

It’s worth noting that GitHub is a platform typically used by companies with more than one person working on a specific project, typically within the fields of engineering and software development. As the article’s authors, who publish under pseudonyms, summarize:

“These findings suggest GameStop’s NFT marketplace will allow for resale of digital assets, including the ability to pay royalties to the original creator on future transactions.”

What This Could Mean

As of now, everything reported by GMEdd remains highly speculative. No one from GameStop has publicly made any statements regarding the potential partnership or NFT rollout.

What we do know is that the NFT market is red hot right now.

A combination of the two investment sensations of the past year could revolutionize much more than gaming. The team behind Floki Inu  (CCC:FLOKI-USD) is also hard at work developing an NFT gaming platform and that is only one example. One of the worst mistakes an investor can make heading into 2022 is to underestimate the power of NFTs. Everyone should be watching very closely as more details emerge. GME stock could be bound for another historic rise. Just be careful to do your own research.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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