Loopring (LRC) exploded into the public consciousness late last year, as rumors swirled about their upcoming partnership with GameStop Corp. (NYSE: GME). Despite its previously low profile, Loopring is not as new as many think – the blockchain launched in 2017 and focused on building technology over unsustainable hype. That approach paid off as GameStop chose them as the wallet provider and an integral part of their upcoming NFT marketplace. Given GameStop’s status as one of the most talked-about stocks on the planet, the partnership had an understandable impact on Loopring’s overall value.
GameStop’s NFT program aims to create an interdependent marketplace for digital goods. Likely to earn comparisons with the ‘metaverse’ concept, GameStop’s NFT system is not the first to dabble in ownership of digital goods. Enjin envisioned a similar market back in 2017 but lacked the real-world clout that GameStop can bring to bear.
GameStop’s Recent History
GameStop’s history as a physical retail chain pales when compared to its recent “meme” status. Far from the days of reselling used games, GameStop’s surge in value allowed them to focus on new revenue streams. By embracing the online communities buying their stock in a constant frenzy, GameStop earned a degree of loyalty. Further, the type of investor that bought GME also trended towards the cryptocurrency market.
The legitimate turnaround that GameStop began during the pandemic proved two-pronged, serving to reward those that invested in GME – while simultaneously thumbing their nose at the disingenuous financial institutions that, historically, benefit more from the business bankruptcies. While their ultimate fate has yet to play out, their near future appears bright.
Loopring and NFTs Beyond Art
Beyond simply a means for GameStop to support their nascent NFT marketplace, Loopring also serves as a viable Layer 2 solution for the Ethereum blockchain. These sidechain platforms proved themselves necessary as Ethereum failed to adapt to current market conditions, with fees remaining untenably high. By reducing the overall transaction friction, ecosystems like Loopring can make dApp usage more efficient.
As for NFTs, the idea of digital ownership allows for a variety of uses – beyond the accepted “digital art” vector. Given GameStop’s previous status as a game reseller, it’s possible to see digital licenses for game ownership in the future. Locked to an NFT, these would allow reselling of digital game ownership – allowing users to recoup some degree of cost after completing purchased games.