GameStop’s stock has risen almost 10% in response to a two-letter tweet.
- The stock of GameStop (NYSE:GME) has risen 10% today, causing quite a stir on social media.
- This looks to be the result of a tweet from GameStop’s NFT account.
- Investors are pleased about the company’s plans to create a low-cost NFT marketplace.
GameStop (NYSE:GME) is still looking for methods to increase its appeal among retail investors. Today, GME stock is up about 10% in the afternoon session, indicating that it is on the rise once again.
What’s Driving This Decision?
To all of its followers, the corporation tweeted “gm.” This has been a signal speculators have been looking for as a cause to increase to their holdings as a common word used among crypto aficionados — and merely a good morning greeting. With the name GameStopNFT, this tweet originated from a GameStop-affiliated account. This is also the Twitter account’s first tweet.
The hype around this tweet is related to GameStop’s new NFT marketplace. Immutable X (IMX-USD), a blockchain initiative, will be used to develop the company’s platform. The purpose is to provide investors with a variety of Ethereum (ETH-USD)-based NFTs with much reduced transaction costs. If this takes off, investors will have another speculative catalyst to invest in.
Let’s take a look at what this news may mean.
GME Stock Rises Due to NFT Market Expectations
Despite the crypto crisis, interest in non-fungible tokens (NFTs) seems to have declined. Certain well-known projects, such as the Bored Ape Yacht Club, stay in the limelight.
NFT markets are the means via which investors may trade these digital tokens. Many investors believe that having a low-cost alternative on the market, particularly under the GameStop label, will be successful.
However, it will be a difficult struggle. The market is owned by OpenSea, the largest NFT marketplace. In reality, its platform still controls more than half of the market. To be successful, GameStop’s NFT marketplace will need to persuade people to migrate to a platform with fewer users. That might be a tough sell.
For the time being, I believe this is an interesting potential catalyst to keep an eye on. Today’s somewhat turbulent upward movement, however, may not be sustainable. Traders of GME stock should exercise cautious during these moments of high volatility.