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GameStop entered the still-murky Web3 domain at a time when hype around cryptocurrencies, NFTs, and the metaverse was moderating ahead of the current prolonged winter that has enveloped much of this nascent field. While GameStop’s approach to NFTs is looking increasingly shaky, ApeCoin (APE) and its affiliate Bored Ape Yacht Club (BAYC) are still flying high, as evidenced by the coin-buying contract that has drawn significant inflows over the past few hours.
To wit, Axios cited its own internal source as well as several LinkedIn posts to point out that GameStop laid off at least six software engineers recently, with much of that layoff focused on the company’s digital wallet initiative. Keep in mind that GameStop also started a wave of layoffs in July, when the company’s CFO was also put on the chopping block, so to speak.
For a refresher, GameStop’s dedicated NFT marketplace is built on Loopring technology and harnesses the capabilities of the Immutable X solution – an Ethereum Layer 2 (L2) solution – to allow the minting and trading of NFTs in a “carbon neutral” and fee-free environment. In order to attract NFT creators, GameStop has created a $100 million fund denominated in IMX tokens of Immutable X. In addition, GameStop has also launched a browser extension-based digital wallet that allows users to send, receive, and store cryptocurrencies (ERC 20 tokens and Ethereum) Plus NFTs conveniently.
As if the dwindling interest in NFTs wasn’t bad enough, GameStop also partnered with now-bankrupt cryptocurrency exchange FTX in September. According to the company’s press release, the partnership was intended to “introduce more GameStop customers to the FTX community and its digital asset marketplace. In addition to collaborating with FTX on e-commerce and online marketing initiatives, GameStop will begin carrying FTX gift cards at select stores.”
While Web3-based GameStop appears to be more shaky, this is not the case for ApeCoin and BAYC. For starters, ApeCoin aims to power the Bored Ape Yacht Club, a collection of 10,000 profile pictures minted as NFTs on the Ethereum blockchain. BAYC has been developed by Yuga Labs, an exclusive NFT-focused organization, with entry intended only for individuals who already own a qualifying NFT. For a refresher, a non-fungible token (NFT) is a deed of sorts to a digital item, thus turning it into an asset. Keep in mind that Yuga Labs did not create ApeCoin. Instead, it is the brainchild of ApeCoin DAO, a decentralized autonomous organization (DAO) created to control the token and its future development. Aside from serving as the governance token for BAYC, ApeCoin also intends to become the preferred payment method for dApps and metaverse offerings.
The ApeCoin contract to buy started working about 20 hours ago. Since then, the contract has attracted more than $23 million in funds. To be eligible for the Staking Rewards will go live on the 12thThe tenth In December, ApeCoin holders will have to lock a certain number of coins into a staking contract, depending on the specific pool those holders are targeting. Bored or converted NFT holders can also participate in this hoarding activity by “committing” eligible NFTs along with the required amount of APE, all mapped to a double pool.
APE Staking started 11 hours ago, and so far, 2.9 million Monkey dollars ($11.5 million) mortgage.
Official contract address: https://t.co/OsAXD0lbNT pic.twitter.com/CZkyuFoCz6
– Lookonchain (lookonchain) December 6, 2022
While GameStop ultimately aims to host billions of low-cost in-game digital assets and NFTs, including digital real estate and in-game skins, thus creating a significant new source of revenue generation, ApeCoin Staking is designed to reward early entrants to those assets. those that come later, with bonuses decreasing over a period of three years. This activity will essentially lock up a certain percentage of the ApeCoin supply, thus creating a theoretical case for a price hike. However, in the short term, concerns are still mounting as to whether a “buy the rumour, sell the news” type of move is imminent. So far, the currency has fallen just over 1 percent in the past 24 hours.
Do you think GameStop’s latest round of layoffs will have an impact on the broader Web3 field? Let us know your thoughts in the comments section below.