What Is the GameStop NFT Marketplace & How Does It Work?t
nfts
The digital universe has shown us a new star—the GameStop NFT marketplace—in October 2022. This platform, a venture by veteran retailer GameStop, is a testament to innovation in the field of digital collectibles.
NFTs, or non-fungible tokens, are unique digital assets. The GameStop NFT marketplace is a hub for these digital treasures, where creators, gamers, and collectors can trade with ease. Built on the Ethereum blockchain, this marketplace has seen a successful launch and continues to grow.
This guide will navigate you through the GameStop NFT marketplace, highlighting its features and discussing its limitations. So, let's have a pleasant 15-20-minute walk around the world of NFTs.
What is the GameStop NFT Marketplace?
The GameStop NFT Marketplace is a digital platform where users can display and trade their Non-Fungible Tokens (NFTs). It has gained popularity for its direct approach to the NFT market, allowing buyers to purchase unique digital collectibles straight from artists, brands, and secondhand sellers.
This direct connection eliminates the need for intermediaries, making the buying and selling process more straightforward and efficient.
The marketplace operates on a simple principle: creators get royalties for every piece sold or traded.
On its launch day, the GameStop NFT Marketplace saw more than 1,831 ETH in trading volume, which is around $2.7 million in fiat and $45,000 in transaction fees. That's far more than $75,000 of Ethereum traded on the Coinbase NFT marketplace on its first day.
One of the main reasons why GameStop NFT Marketplace became so popular was its use of Loopring to handle transactions. Loopring is a Layer-2 solution for the Ethereum blockchain that offers an innovative way to handle transactions on the network. It's able to bundle thousands of transactions into a single block.
That way, Loopring offers high levels of security with a significant reduction in gas fees. Essentially, users share transaction costs, making them more efficient and economical.
Furthermore, GameStop's partnership with ImmutableX allows it to host a series of Web3 games.
Another useful service that GameStop offers is its PowerUp Pro membership. In essence, loyalty members can use it to access any game on Ethereum's Layer-2 Immutable X network.
How Did GameStop Get Into NFTs?
GameStop, once a treasure trove of gaming accessories and consoles, faced a significant challenge in Q4 2021. The company's bottom line took a hit, prompting a strategic shift toward the burgeoning crypto space. Recognizing the need to evolve with the times, GameStop decided to reinvent itself.
The company saw the potential in Web3 gaming, an emerging trend that blends gaming with blockchain technology. Keen to stay ahead of the curve, GameStop decided to venture into this new frontier.
After much anticipation, the GameStop NFT marketplace beta version was launched on July 11, 2022, according to CoinDesk.
The launch date was a significant milestone for GameStop. It marked the company's evolution from a go-to spot for video games and consoles to a pioneer in the NFT marketplace. This transformation was not an overnight process. It involved strategic planning, staff reshuffling, and new hires focused on blockchain gaming, e-commerce, and technology.
GameStop's chairman, Ryan Cohen, led the company to enter the market of online products and digital services in an effort to reinvigorate the former video gaming retailer giant.
How to Use GameStop NFT Marketplace?
To buy NFTs on the GameStop NFT marketplace, you need a funded ETH wallet that’s supported by the platform.
Here's a step-by-step guide on how to do it:
Step 1: Create a Wallet
You need a crypto wallet to gain access to the GameStop NFT marketplace. The good thing for users is that the platform started supporting a larger number of wallets in July 2023.
Still, one of the best and most streamlined wallet options for accessing the GameStop NFT marketplace is the GameStop NFT wallet. You can access it directly on their website.
Here is how you can start using this wallet in four simple steps:
- Visit the GameStop NFT website and click the "Download Now" button to initiate the download process
- Once the download is finished, click on "Create New Wallet"
- Agree to the Terms and Conditions
- Set a password for your GameStop wallet
In just a few minutes, you'll gain access to a lively GameStop marketplace and all of its features.
On the other hand, if you have a preexisting wallet supported by the GameStop marketplace, you can connect it via the GameStop NFT website's login page. By following a straightforward list of instructions, you can have your MetaMask (or some other supported wallet) connected with the platform in no time.
Step 2: Fund the Wallet
Having an empty wallet won't be of much use on the GameStop NFT marketplace. You need to have Ethereum on it to be able to make purchases, and you can use the Loopring network to transfer your crypto.
There are three options for funding your wallet with ETH. By clicking on your avatar and on "Add funds to L2," you'll get to choose how to deposit funds into your Loopring account.
The options are:
- Buy crypto with a card
- Transfer assets from another wallet
- Send a request to another user
If you want to use a card to purchase Ethereum with fiat, you can use services like Ramp or Wyre. On the other hand, if you already have a wallet connected and funded with ETH, you can use the "Deposit ETH from your wallet" feature.
Keep in mind that you'll have to pay a gas fee for any transactions on the Ethereum mainnet but not for transfers on Layer-2.
Step 3: Buy an NFT
Now that you've set up and funded your wallet, you're prepared to delve into the world of NFT ownership.
With GameStop's NFT marketplace, you're not just buying a piece of digital art but rather investing in an entirely new form of digital ownership.
To browse the expansive NFT collections, which include over 54,000 unique pieces, simply click "Explore" on the homepage's top navigation bar. This will lead you to an immersive page showcasing a multitude of NFTs or collections by various talented creators on the platform.
When an NFT catches your eye and you decide to purchase it, it's as easy as clicking the “Buy Now” button. This action opens a user-friendly checkout window for transaction confirmation. Here, it's important to meticulously review all the transaction details before clicking “Confirm payment."
This includes the price, the gas fees, and the specifics of the NFT you're purchasing. Once the purchase is confirmed and successful, the platform makes it easy for you to view and manage your NFTs. Just click on your profile at the top right corner and select the wallet used to purchase the NFT. Your new acquisition will be there waiting for you.
Remember, as with any financial transaction, investing in NFTs should be approached with care. Ensure you're knowledgeable about the assets you're purchasing, understanding both their cultural value and the technology behind them.
Only invest what you're comfortable potentially losing, as the NFT market, like any other, comes with its risks and rewards.
User Benefits of Participating in the Gamestop NFT Marketplace
While many Web3 companies and startups have had a first-mover advantage, GameStop's biggest benefit is its established customer base. That's how GameStop managed to launch a myriad of Web3 products into a vast Web2 market and surpass Coinbase's initial sales volume.
On top of that, GameStop took advantage of strategic partnerships obtained during their long years of conducting business. They then leveraged concepts such as explainer videos, community initiatives, and allied products to create a comprehensive and engaging user experience.
Here are some of the key benefits users get from using the GameStop NFT marketplace:
- Detailed how-to videos that are perfect for entry-level users. Many people wanted to buy and use NFTs but had no idea how wallets or crypto worked. These how-to videos facilitate the onboarding process.
- User-friendly wallet features allow customers to buy Ethereum quickly and effortlessly using fiat currency. There's no need to use exchanges or learn potentially complex transaction procedures.
- Focus on user experience, where GameStop leveraged years of practice in the gaming retail industry to create a smooth Web2-like customer journey.
- Gas-free minting, which allows users to mint NFTs free of charge. That also makes the process environmentally friendly, aiding the company's strides toward carbon neutrality.
How GameStop Benefits From the NFT Marketplace
The NFT marketplace fostered GameStop's success and growth, ultimately helping them increase revenue. It proved to be the right move at the right time. It transformed the company's ecosystem, resulting in an economic boom.
The economic boom stems from a simple concept: any economic entity can prosper from having a strong commerce and exchange system.
The rise in popularity of Web3 proved it to be a lucrative market long before giants like GameStop stepped in. Concepts like NFTs create opportunities for companies to generate revenue in various ways. They can be purchased, transferred, and traded between every Web3 participant.
However, there was a visible lack of a user-friendly venue. Customers who are less versed in the world of cryptocurrencies needed a Web2-like NFT marketplace, which is where the GameStop NFT marketplace stepped in.
The result is a customer-centric, easy-to-use NFT site launched by one of the most recognizable names in the gaming industry. Ultimately, their efforts resulted in both customer and revenue growth.
How Game Developers Benefit from GameStop NFT Marketplace
Game developers and creators stand to gain significantly from the GameStop NFT marketplace.
The success of any Web3 platform is heavily reliant on its community, and an ecosystem that supports creators and game developers is crucial for achieving a network effect on the platform.
As a big name in the gaming industry, GameStop used its influence to help the creator community. Their numerous initiatives and partnerships with esports organizations are all focused on progress and product expansion.
GameStop continuously puts effort into improving the customer experience and strengthening its technological capabilities. They aim to bring both gaming NFT collectors and creators together, providing more opportunities for everyone.
This has facilitated the achievement of network effects on the platform, creating a thriving environment for game developers and creators to showcase their work and engage with a dedicated community.
GameStop vs. OpenSea
OpenSea, established in 2017, is a leading NFT marketplace with a vast array of NFTs backed by asset contracts across the Ethereum blockchain.
It currently commands over a third of the NFT market, with only Blur ranking higher as of mid-2023. OpenSea's size and establishment give it a significant advantage in terms of the number of NFTs listed on the platform.
On the other hand, GameStop's NFT marketplace, although newer and still in its “embryonic” phase, has shown promising growth.
It offers a unique advantage by listing a substantial volume of Web3 and NFT games alongside other digital collectibles.
GameStop's strategy is to leverage its existing user base of gamers and provide a "one-stop-shop" experience for all things within Web3 gaming.
Comparing the two isn't entirely fair due to their different stages of development. However, when considering which platform to use, key factors such as liquidity, ownership, and transaction fees should be taken into account.
Despite being a newcomer, GameStop's NFT marketplace has made a noticeable impact in the NFT world thanks to its:
- Intuitive user interface
- Fast transaction times via the Loopring L2 network
- Competitive fee of just 2.25% on all sale transactions
But it currently only supports ETH payments and is compatible with a limited number of wallets.
While it has shown potential, it still has a considerable distance to cover before it can compete with giants like Blur and OpenSea. Let’s visualize this gap:
Key Takeaways
So far, we've seen the NFT market closely follow the happenings in the world of cryptocurrency. In essence, it has experienced a vast drop in popularity during the bear market.
On the flip side, that gives GameStop a unique opportunity to come out on top as the market recovers. Their refined customer-first approach, coupled with years of experience in the gaming retail sphere, gives them the potential to become one of the biggest NFT marketplaces in the gaming world.
The success of the GameStop NFT marketplace showed that a sector-specific business model likely has more potential than a generic one, like OpenSea. Even though GameStop didn't have a first-mover advantage, they have shown themselves to be formidable players in the NFT landscape.
GameStop NFT Marketplace FAQ
#1. How do I access the GameStop NFT marketplace?
You can access the GameStop NFT marketplace by visiting their official website. Once there, you can browse the available NFTs, connect or create a wallet, and start buying or selling NFTs.
#2. What is the most popular NFT marketplace?
As of now, OpenSea is considered the most popular NFT marketplace. It has a vast array of NFTs and commands a significant portion of the NFT market. However, other platforms, like GameStop, are emerging with unique offerings.
#3. How do you get NFTs at GameStop?
To get NFTs at GameStop, you first need to create or connect a wallet. Then, you add funds to your wallet, either by buying ETH or transferring funds from an existing wallet. Once your wallet is funded, you can browse the available NFT collections and purchase your chosen NFT.