- Today’s 10% surge in GameStop (NYSE:GME) stock is creating quite the buzz on social media
- A tweet from GameStop’s NFT account appears to be behind this rise
- The company is looking to build a low-cost NFT marketplace, which is getting investors excited
GameStop (NYSE:GME) is continuing to find ways to build popularity with retail investors. Today, GME stock is once again on the move higher, surging nearly 10% in the afternoon session.
What’s behind this move?
Well, the company tweeted “gm” to all its fans A popular term used among crypto fanatics — and just a good morning greeting — this has been a signal speculators have been waiting for as a reason to add to their holdings. This tweet came from a GameStop-affiliated account, with the handle GameStopNFT. This is also the first tweet from this Twitter account.
— GameStopNFT (@GameStopNFT) May 19, 2022
The buzz around this tweet relates to a new NFT marketplace GameStop is building. The company will be using blockchain project Immutable X (IMX-USD) to build out its platform. The goal is to offer a range of Ethereum (ETH-USD)-based NFTs with much lower transaction costs for investors. Should this take off, there’s another speculative catalyst for investors to jump on.
Let’s dive into what may come as a result of this announcement.
GME Stock Surges on NFT Marketplace Anticipation
The surge in interest in non-fungible tokens (NFTs) appears to have waned amid a crypto crash. However, certain popular projects like the Bored Ape Yacht Club remain in the spotlight.
NFT marketplaces are the vehicle investors use to transact these digital tokens. Having a low-cost option on the market, especially under the GameStop banner, is something many investors think will take off.
That said, it will be an uphill battle. OpenSea, the major player among NFT marketplaces, owns the market. In fact, its platform still has more than 50% of the overall market. For GameStop’s NFT marketplace to be successful, users will need to be enticed to switch to a platform with less eyeballs. That might be a difficult sell.
For now, I think this is an intriguing potential catalyst to watch. However, today’s rather volatile move higher is one that may not be sustainable. Investors may want to take caution when trading GME stock during these periods of volatility.
On the date of publication, Chris MacDonald 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.