The Loopring (CCC:LRC-USD) network is seeing a great hindrance today from the GameStop (NYSE:GME) news. Indeed, the company’s announcement regarding its non-fungible token (NFT) trading platform is sowing much confusion about the network’s role in the product. Some investors think Loopring’s out, others think it’s not, and it’s no help that the network’s CEO is stepping down this morning. What’s the deal with the LRC crypto today? And are things as bad as they seem? Well, maybe not.
Things seem pretty gloomy at first glance for Loopring. GameStop is announcing blockchain network Immutable X (CCC:IMX-USD) as the developer for its NFT marketplace. This flies in the face of months of speculation from GME bulls and LRC holders alike; since November, chatter has been circulating around Loopring providing the infrastructure for the platform.
Immutable X and Loopring are similar in that they are layer-2 networks. They also both emphasize zk-rollups as their preferred method of proofing; these proofs are what allow both networks to offer greatly reduced gas fees over the Ethereum (CCC:ETH-USD) network. The similarities of the projects add salt in the wound of LRC bulls amid the announcement.
Making things even worse for Loopring is the sudden departure of Daniel Wang as the project’s CEO. Just moments after GameStop’s Immutable X announcement, Wang said he is stepping down from his leadership role. Rather, he will be taking on an advisory role to the newly announced chief executive, former CTO Steve Guo.
LRC Crypto Not Going Anywhere, Still Included in GameStop’s Big Plan
These threads seem to all weave together to create a bearish picture, but that might not be the case. Indeed, the LRC crypto is not totally out as a result of GameStop’s announcement; a closer look at the details shows that Loopring isn’t going anywhere.
Yes, Immutable X and Loopring are similar, but it doesn’t mean they are pitted against one another. Rather, the networks will ultimately both be a huge part of GameStop’s NFT trading platform, according to documents from the company.
GameStop filed an 8-K with the U.S. Securities and Exchange Commission this morning, detailing the new relationship with Immutable X. An 8-K is a document companies are required to file when they announce events that are considered significant to shareholders.
The 31-page document goes over plans for Immutable X to develop the infrastructure for GameStop’s coming NFT exchange. In the deeper details of the document, the company reveals that Immutable X will work alongside Loopring on the platform, rather than instead of. It says Immutable X will be the only protocol integrated by the company into this platform; Loopring will come afterward. Investors on Twitter theorize that while Immutable X will provide the general infrastructure, Loopring will be integrated to better streamline trades afterward.
As investors continue to digest the news, the LRC crypto is posting losses of 8%.
On the date of publication, Brenden Rearick 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.