Layer 2 Plans for GameStop’s NFT Platform Create Confusion

The game company earlier stated that it would build its NFT marketplace on Immutable X’s Ethereum scaling technology.

Ethereum’s Layer 2 implementation Loopring announced today that it will power GameStop’s next NFT marketplace beta. The announcement contradicts previous comments from GameStop admitting Immutable X’s involvement in the development of the company’s NFT trading platform.

GameStop Prepares to Launch a New NFT Marketplace

GameStop is preparing to launch its NFT marketplace—but it’s unclear which Layer 2 project will power it.

GameStop has been progressing with plans to build an NFT marketplace on Ethereum for several months. According to GameStop’s fourth-quarter results announcement, the business has partnered with Ethereum scaling solution Immutable X to help develop its forthcoming NFT trading platform.

However, a Wednesday announcement by Loopring, another Ethereum scaling solution, has fueled speculation over whose company is running GameStop’s NFT marketplace. Loopring stated in a blog post that its scaling solution will be used to build the beta version of GameStop’s new marketplace.

“The new GameStop NFT Marketplace is built on top of Ethereum’s second layer, especially Loopring L2,” the paper adds, noting that the marketplace will inherit Ethereum’s Layer 1 security while significantly lowering gas costs. These remarks directly contradict prior GameStop rumors from February, which stated that Immutable X will create the marketplace.

To allay community concerns on Loopring’s announcement, Immutable X co-founder and president Robbie Ferguson turned to Discord to field questions. He explained that GameStop’s new marketplace would operate as an aggregator, allowing for the trading of NFTs hosted on Immutable X and Loopring.

Ferguson stated that he expects the “vast majority of NFT trading on GameStop to occur on Immutable X,” citing several games built using Immutable X’s APIs, such as Illuvium and Ember Sword, as among the first to have their NFTs traded on Immutable X. “Immutable X remains GameStop’s preferred partner, and future titles will utilize the Immutable X API,” he added.

Loopring’s involvement in GameStop’s NFT platform surprised the market, with the LRC token surging over 41% in response. Despite some indications, such as Loopring’s Head of Business Matthew Finestone leaving the company in April 2021 to become GameStop’s Head of Blockchain, it was widely believed that GameStop’s partnership with Immutable X precluded Loopring from acquiring GameStop.

The NFT marketplace from GameStop is scheduled to launch in the second quarter of 2022 and will integrate with Immutable X and, eventually, several other Ethereum scaling solutions.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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