Anita Ramaswamy, Lucas Matney
July 14, 2022
Image Credits: TechCrunch
Everyone’s favorite 2020 meme stock is back in the news, and this time it’s flexing on crypto industry incumbent Coinbase. GameStop, which largely operates brick-and-mortar retail stores for video games, made a foray into the metaverse with its launch of an NFT marketplace this week. In just two days of being live, the platform brought in roughly $3.5 million worth of ETH in sales, making the ~$1.8 million Coinbase has made through its own NFT marketplace since its launch back in May look like chump change.
Hello and Welcome Back to The Chain Reaction Podcast
Where we unpack and explain the latest crypto news, drama, and trends, breaking it down block by block for the crypto curious.
This week, Lucas and Anita dove into GameStop’s financials and the competitive landscape for NFTs to examine whether its early web3 success can last. They also talked about what could shape up to be one of crypto’s most consequential rug pulls (even if it wasn’t on purpose) and why crypto VCs are hoarding cash right now.
Our guest: Yat, founder and CEO, Naveen Jain
You know those strings of emojis celebrities like Ke$ha have been putting in their Twitter bios? They’re Yats, a product CEO Naveen Jain sees as an identity solution for web3 users. Jain explained to us how these emojis have anything to do with crypto and shared his views on whether providing people with clout is enough to sustain a market in the long term. Why the eagle emoji, you ask? It’ll all make sense once you listen to the episode.
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Anita Ramaswamy: Reporter, Crypto and Fintech
Anita Ramaswamy was a reporter at TechCrunch focused on crypto and fintech. She also co-hosted TechCrunch’s weekly crypto podcast, Chain Reaction, and co-authored its companion newsletter of the same name.
Before TechCrunch, Anita covered financial institutions for Business Insider. Prior to becoming a journalist, she worked as an investment banking analyst at SustainCore, where she focused on impact investing and sustainability. She holds a BA in International Relations from New York University.
- Disclosure: Anita Ramaswamy owns 10% of Yat’s NFT platform, which is listed on the secondary market.*
Lucas Matney: Editor-in-Chief, CryptoTechDaily
Lucas Matney has been covering blockchain and cryptocurrency technology for over a decade. He previously worked as a senior editor at Bitcoin.com and a contributor to several prominent crypto publications. Lucas holds a degree in International Relations from Brown University.
GameStop’s Financials and Competitive Landscape
Since its relaunch in November 2021, GameStop has become one of the most talked-about meme stocks in the crypto space. The company, best known for its "MemeStock" business model, saw a 35% increase in daily trading volume on December 16, 2021, driven by the release of Stardew Valley World of Craft 2D Collectibles NFTs.
In the first six months of 2022, GameStop’s NFT marketplace generated $4.8 million in revenue, with ETH sales alone contributing more than half of that total. The company has since expanded its offerings to include a variety of collectibles, including board games, trading cards, and anime/manga figures.
Comparing GameStop to Coinbase
Coinbase, the industry leader, reported $15 billion in gross Merchandise Revenue (GMV) for Q2 2022. By comparison, GameStop’s NFT marketplace generated less than half a million dollars in the same period—a stark contrast to the meme stock’s potential.
The Crypto Market Landscape
The crypto market has been dominated by major cryptocurrencies like Bitcoin and Ethereum, which have seen prices swing widely over the past year. However, smaller altcoins and decentralized finance (DeFi) platforms are gaining traction as investors seek alternatives to traditional financial systems.
The Chain Reaction Podcast
In this special episode of The Chain Reaction, we explore GameStop’s pivot into NFTs and what it means for the future of crypto. Our guests discuss everything from the impact of emojis on web3 culture to the challenges of scaling decentralized applications.
Yat’s NFT Platform: A Breakthrough in Web3
Yat, founded by Naveen Jain, is a decentralized platform designed to simplify the ownership and trading of digital assets. The company’s focus on user experience has made it a favorite among early adopters, particularly within the crypto community.
Yat’s success could signal a new era for decentralized applications, but only if it can scale sustainably.
The Crypto VC Landscape
The venture capital industry in the crypto space is still in its infancy. However, as more companies enter this space, investors are increasingly looking for ways to assess risk and return. For now, crypto VCs appear to be hoarding cash—anecdotally, many are sitting on reserves ahead of potential investments.
Wrapping Up
This concludes our exploration of GameStop’s second act in the crypto space. While its meme stock roots make it an unlikely successor to Coinbase, the company’s pivot into NFTs could pave the way for new opportunities in decentralized finance and digital asset ownership.
We’ll see where this adventure takes us next.
Thank you for joining us on The Chain Reaction. Catch you in the next episode!
