News & Analysis

Meme Stocks + NFT and Crypto = 19% rise!

Andrew Saks, Friday, 7 January 2022

It's meme time again, only a bit different.

A year has passed since the infamous GameStop short squeeze which saw a large number of banks and brokers close their customers out of their accounts due to an incredibly high level of volatility.

The Meme Stock trend was suddenly of massive interest to traders who became market makers in their own right over night last January, and since then the Reddit boards have become awash with newly empowered traders looking to move their own markets.

Initally focusing on GameStock and AMC stock, the Meme Stock portfolio has expanded, but those two are still the dominant instruments of choice for the social media disruptors.

Today, one year on, the Meme Stock trading phenomenon has melded with the equally faddish NFT trend, and GameStop's stock is up an astonishing 19% in pre-market trading due to the company's plans to enter the NFT space and some cryptocurrency markets.

This is a combination of great interest, as it fuses the already volatile GameStop meme stock with the equally community-driven and equally volatile cryptocurrency and NFT phase that the world appears to be currently going through.

Under the leadership of Chairman Ryan Cohen, GameStop is going through a number of changes and attracting top level senior executives from companies including Amazon in order to move GameStop away from traditional business methodology toward towards e-commerce and by venturing into cryptocurrencies and NFT, there could be no more 'trendy' a venture into the electronic world.

The Wall Street Journal was first with this, having reported during the late hours of the US trading day yesterday that GameStop has begun to approach select game developers and publishers for them to begin listing NFTs on its marketplace when it launches later this year.

Since launching its NFT website last year, GameStop has been inviting artists to join and participate.

GameStop has demonstrated that this is a case of 'if you can't beat them, join them' as it has ridden a wave of market volatility at the hands of Reddit community boards, and this is a very avant-garde step.

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