Loopring‘s (LRC -5.95%) LRC token is surging in today’s trading. The digital currency was up roughly 4.7% over the previous 24-hour period as of 12:15 p.m. ET.
The LRC token has been making big gains following the beta launch of GameStop‘s (GME -3.28%) non-fungible-token (NFT) marketplace platform, which is built using Loopring’s services. The company’s recently filed trademark for “GameStop Wallet” suggests that the retailer is moving into blockchain-wallet services, and investors are betting that Loopring will play a role in the product.
Is it time to pounce on this potentially explosive token?
Loopring provides layer 2 solutions built on Ethereum‘s blockchain that can be used to operate digital-asset exchanges and cryptocurrency-wallet services. Its LRC token skyrocketed last November on news that GameStop was planning to purchase the blockchain-services organization. The proposed deal wound up falling through because the retailer was concerned about potential complications related to the blockchain-services provider’s operations in China, but it’s still gone ahead with using Loopring as the foundation for its cryptocurrency market.
GameStop is pivoting away from brick-and-mortar retail operations in a bid to reinvent itself as an e-commerce and digital-services company. The company’s push into the NFT marketplace space is part of this initiative, and there seems to be a good chance it will launch a crypto-wallet service using Loopring’s tech in the not-too-distant future as well.
If successful, these projects could be major catalysts for LRC’s valuation, and it’s also possible that other partners will build exchange and wallet services using Loopring.
Despite its explosive recent gains, Loopring’s cryptocurrency still trades down roughly 66% from the high it hit last November. For risk-tolerant investors interested in the blockchain-services space, it could be worth initiating a position in LRC at current prices. However, if you’re not open to high risk and volatility, it might be better to seek out other investment options.
LRC will likely continue to see pricing moves in conjunction with momentum for the broader cryptocurrency market. That means that the token could very well soar if the crypto space bounces back to reach new heights, but it would likely also see negative effects if the crypto market faces bearish pressures from current valuation levels.
LRC’s fundamental valuation case is becoming increasingly intriguing, but it’s probably still best to think of the token as a high-risk, high-reward play.