GameStop Delves Deeper Into Crypto With Digital Wallet Launch

Key Insights:

• The new wallet will be self-custodial and linked to the upcoming NFT marketplace. 
• The layer-2 Loopring network powers GameStop Wallet.
• Coinbase has also expanded its trading networks on its crypto wallet.

On May 23, the Texas-based video game, consumer electronics, and gaming merchandise retailer unveiled a new crypto wallet. It stated that the service would allow gamers and customers to store, send, receive and use crypto assets and NFTs across decentralized apps (dapps) without leaving their web browsers.

GameStop [GME] stated that its self-custodial Ethereum (ETH) wallet is a Chrome browser extension. This means it operates in the same way that MetaMask does, as an addition to the web browser.

It added that the wallet would also enable transactions with the GameStop NFT marketplace, which is expected to launch in Q3 this year (the firm’s second fiscal quarter).

It’s official! The GameStop Wallet is here.

Download: https://t.co/dK2dmRmwRI

🧵👇

— GameStopNFT (@GameStopNFT) May 23, 2022

Layer-2 Speeds and Pricing

Further details were thin on the ground, but the wallet’s official page revealed that it would be running on the Loopring (LRC) network. Loopring is a layer-2 exchange that uses zero-knowledge rollup technology to increase the speed and decrease the cost of Ethereum transactions.

Swapping tokens using layer-1 Ethereum can cost as much as $50 during peak demand on the network. Loopring transactions, on the other hand, are usually less than a dollar.

Additionally, the wallet is self-custodial, which means that users are responsible for their own crypto keys and security. This is different from wallets from centralized exchanges such as Coinbase [COIN] and Binance that control the keys, and, ultimately the assets stored on them.

The crypto wallet space has been heating up recently, with Robinhood [HOOD] announcing its crypto wallet launch last week. The zero-fee token swap platform is also self-custodial and will feature decentralized finance (DeFi) protocol integration.

Coinbase is also eager to keep up with the wallet competition. In an announcement on May 24, the company unveiled an expansion of wallet trading features to incorporate “thousands of tokens.” The firm has expanded its networks from Ethereum and Polygon (MATIC) to include BNB Chain (formerly Binance Smart Chain) and Avalanche (AVAX). It added that there would be more network expansion in the coming months:

“In the months to come, we’ll be making it possible to conduct swaps on an even greater variety of networks. Not only will trading expand, but we’re also planning to add support for network bridging, allowing you to seamlessly move tokens across multiple networks.”

LRC Price Outlook

The native token for Loopring, the platform behind GameStop’s wallet, surged 30% on the news. LRC has retreated a little since and is currently trading at $0.58 after hitting an intraday high of $0.65, according to CoinGecko.

LRC is one of the few tokens that has made a gain over the past week, notching up 25%, while those around it have tanked. However, the token is still down 84% from its November all-time high of $3.75.