U.S. gaming retailer GameStop, rescued from bankruptcy 2 years ago by the Reddit community, made a profit of $1.035 billion in the first four months of 2022.
GameStop released a report for Q1 2022. The company had a four-month profit of $1.035 billion. Net sales for the quarter were $1.378 billion compared to Q1 2021, an increase of $101 million.
The company received part of its income by investing in cryptocurrency assets. The main profit was brought in this context by the sale of IMX tokens of the Immutable X protocol in the amount of $76.9 million.
Besides financial reports, the press release indicated that GameStop developers are working on launching a cryptocurrency wallet that will allow players to use digital assets.
Digitalization of GameStop products is an important element of the company’s existence in the video game market. Over the past decade, there has been a shift from console-based media to online gaming, which has prompted a precipitous decline in the company’s stock — by late 2015, GameStop (GME) stock was worth about $46, and in early 2020, it was trading around $3.5.
The outbreak of the COVID-19 pandemic was an additional factor that influenced the collapse of GameStop stock. It is assumed that the plans of the big market players included spreading panic among amateur traders so that they would sell out GME at a low price. GameStop’s bankruptcy was prevented by members of the Reddit community Wallstreetbets, whose actions provoked an increase in shares of 1800% in nine days and allowed the company to continue its activities.
The Reddit platform is systematically expanding its functionality to issue its ERC-20 tokens by representatives of individual communities. These tokens act as internal economic incentives for users and are traded on many DEXs.
