Loopring's LRC Token (quotation LRC) is climbing in trading these days. The digital currency was up about 4,7% from the previous 24-hour period.
The LRC token made big gains following the launch of the beta of GameStop's NFT market platform, which is built using the services of Loopring. The company's recently filed trademark for “GameStop Wallet” suggests 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 throw yourself into this potentially explosive token?
Loopring provides Level 2 solutions built on the Ethereum blockchain that can be used to operate digital asset exchanges and cryptocurrency wallet services. Its LRC token skyrocketed last November upon news that GameStop was planning to buy the blockchain services organization. The proposed deal ended up falling because the retailer was concerned about potential complications related to the blockchain service provider's operations in China, but still moved on with using Loopring as a foundation for its cryptocurrency market.
GameStop is moving away from brick-and-mortar retail operations in an attempt to reinvent itself as an e-commerce and digital services company. The company's push into the NFT market space is part of this initiative, and there seems to be a good chance it will launch a cryptocurrency service using Loopring's technology in the not too distant future.
If successful, these projects could be important catalysts for LRC evaluation, and it is also possible for other partners to build exchange and wallet services using Loopring.
A cryptocurrency for those who love to take risks
Despite the explosive recent gains, the Loopring cryptocurrency is still down around 66% from last November's high. For risk-tolerant investors interested in the blockchain services space, it may be worth starting a position in LRC at current prices. However, if you are not open to high risk and volatility, it may be best to look for other investment options.
LRC will likely continue to see price movements in conjunction with the momentum of the broader cryptocurrency market. This means that the token could very well go up if the cryptocurrency space rebounds to reach new heights, but it would also likely see negative effects if the cryptocurrency market were to face bearish pressures from current valuation levels.
LRC's fundamental valuation case is getting more and more intriguing, but it's probably even better to think of the token as a high-risk, high-reward game.