Loopring and Gamestop are two entities that, at first glance, seem very different. One is an ICO, the other an electric retail company. One is in China, one in America. They have nothing in common except for one thing-both are seeking to make money!
It may be hard to believe if you look at them objectively, but when it comes to their ultimate goal, they’re really not so different at all. Loopring – doing the same thing as GameStop but in a different way.
And with the introduction of new emerging technologies like blockchain and cryptocurrencies, it seems only fitting that one of these two industries would be looking for ways to work together to maximize their potential. Now, the big question is, could this be the reason why Gamestop is seeking a partnership with Loopring?
However, the sad reality is that as much as the whole video game industry is booming, the actual situation on the ground for Gamestop is pathetic. The company is recording losses after losses, and it’s really struggling to keep up with the new players in town.
So, what’s Loopring?
Loopring is a cryptocurrency based on the Ethereum network. Their goal is to create a decentralized exchange that can be accessed by any wallet or app, which will open the cryptocurrency market to everyone, not just the extremely tech-savvy.
Loopring recently partnered up with US retailer Gamestop to seek a way for players to convert their digital items into a currency that can be used outside of games. This is because gamers often purchase items in video games and then find out later that they lack any importance outside of it.
The cryptocurrency has appreciated by more than seven times in value this month, approaching a market value of $4 billion. Experts pointed to various factors for the price surge, ranging from rumors that GameStop would accept it as payment to the project’s potential usefulness in metaverse construction.
Some experts believe that the price rise of the LRC to around $3 is due in part to market speculation and hearsay. The price has increased by more than double in the previous week, making the Loopring token one of the top-performing assets in notoriously volatile cryptocurrency markets. According to TradingBeasts’ Loopring predictions for the end of the year, the coin is yet expected to increase by roughly 20%. Similarly, positive view is also shared by other crypto prediction site called CryptoPredictions.com, that predicts for Loopring to be on average $3.263 before end of this year.
Gamestop and Loopring
With this partnership, Gamestop now accepts cryptocurrency as a form of payment alongside credit cards and cash. This marks another move towards widespread acceptance for those using cryptocurrencies as part of their daily transactions.
Loopring works with using smart contracts to send tokens that can be used in games. As this partnership between Gamestop and Loopring grows, Ethereum will likely become the leading currency for transactions involving digital goods. This growth could mean that other forms of currency may not be required anymore due to restrictions placed on converting fiat money into gaming items.
What does This partnership mean for Loopring?
This partnership with Gamestop is strategically crucial for many reasons. The first is that it allows them to leverage the extensive network of stores to promote their decentralized exchange and makes them look like they are already succeeding in the industry. This will encourage other companies to join, ultimately making Loopring more successful.
The next reason is that it allows the companies to expand into retail, which was previously seen as brutal to break into because of the entrenched players. Gamestop’s experience with large-scale operations will help Loopring grow its company quickly.
Gamestop needs this too because it diversifies their business and makes them less dependable on their retail model. This allows them to stay relevant in the industry and potentially profit from this new decentralized exchange (which they will most likely take a cut of for providing support).
As time goes on, it will be interesting to see if Loopring can successfully launch its decentralized platform and how successful it really is. At the moment, Gamestop is struggling with its business model, and they may see this as an excellent opportunity to ride on Loopring’s coattails.
How the Partnership Is Fairing?
Gamestop benefits from Loopring in two key ways: The platform helps address decentralized exchanges, and it also defends Gamestop’s revenue model against competitive threats like Bestbuy and Walmart. Gamers benefit from having quick and cheap access to their favorite games. They are also assured of fair prices for their games, regardless of which platform they bought them from. They are also working together to unlock new potentials in the gaming industry.
The partnership between Loopring and Gamestop has created limitless possibilities for facilitating decentralized exchanges in the video game market. The exchange protocol is set up in a way that other players in the industry can easily adopt it. Gamestop has already begun exploring this potential, having started with an exclusive partnership with SCM Exchange. This platform is powered by Loopring’s smart contracts and enables gamers to trade their digital assets on a decentralized exchange.
Gamers are among the early adopters of blockchain technology. Gamestop has long been an undisputed leader in this space. With their partnership with Loopring, the duo is set to unlock new potentials in the gaming industry.
The Solution to Solve the Common Problem
Now for both companies, this challenge of how to provide the best prices to their customers while maintaining sustainable business practices can be met by first addressing two key factors:
- Public awareness.
For Gamestop, liquidity issues arise when game developers set their own prices. This leads to inconsistent sales that rob Gamestop of potential revenue.
For example, Skyrim Special Edition is priced at $34.99 on Gamestop, while it is available on Amazon for around $34.88. This means that Gamestop has to sell the game at a loss to keep up with their competitor’s prices. On the other hand, Loopring provides liquidity by connecting exchanges and market-makers so that everyone can have access to the best prices for their favorite games.
On the other hand, public awareness is an issue because it hampers the company’s ability to sell its products at a full price. The traditional model for publishing competitive video game prices is outdated and irrelevant in today’s market because gamers have various options for finding deals online.
Gamers can easily compare prices between different retailers (their local Gamestop, Target, Bestbuy, etc.). Still, because Gamestop’s prices are not published on the Internet in real-time, they lose this price advantage at times when demand outweighs supply.
In the past, they have been able to survive because their price markups are smaller than retail chains. However, in this day and age, when gamers have more options available to them, having a low markup is no longer enough for a business to thrive.
This means that Gamestop loses out on possible sales because they cannot capture the interest of potential buyers. To solve this problem, Loopring’s platform uses price comparison sites to make it easier for gamers to find retailers selling games at the best prices
The Bottom Line
Gamers are among the earliest adopters of blockchain technology, and collaborations between them and other prominent players in the global economy present limitless possibilities for innovative advancements. Loopring is one of the most promising cryptocurrencies set to revolutionize the way gamers interact with their favorite games.
On the other hand, Gamestop has long been an undisputed leader in the gaming industry, and their partnership with Loopring promises limitless opportunities for decentralized game exchanges. Their combined expertise will continue to unlock new potentials in the future.