Why the GameStop story is far from over

GameStop’s shares slumped by 40% in 25 minutes on Wednesday, after a few days of frenetic growth.

Earlier that day the share price had soared to nearly $350 (£250) – 100 times more than this time last year.

What does this tell us?
One of the wildest stories of the year is still very much alive
Many amateur traders are still both making money – and getting hurt
Our understanding of what happened in late January, when GameStop’s share price was making headlines around the world, remains incomplete
Why is it shocking?
In February, the prevailing attitude on Wall Street was the share price was slowly finding its natural position.

It had fallen to about a 10th of its late January market high.

And that spike was widely thought to have been a one-off – hedge funds would never again allow themselves to be blindsided.

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What are NFTs and why are some worth millions?

A digital-only artwork has sold at Christie’s auction house for an eye-watering $69m (£50m) – but the winning bidder will not receive a sculpture, painting or even a print.

Instead, they get a unique digital token known as an NFT.

Where Bitcoin was hailed as the digital answer to currency, NFTs are now being touted as the digital answer to collectables.

But there are plenty of sceptics who think it is all a bubble that is going to burst.

What is an NFT?
NFT stands for non-fungible token.

In economics, a fungible asset is something with units that can be readily interchanged – like money.

With money, you can swap a £10 note for two £5 notes and it will have the same value.

However, if something is non-fungible, this is impossible – it means it has unique properties so it cannot be interchanged with something else.

It could be a house, or a painting such as the Mona Lisa, which is one of a kind. You can take a photo of the painting or buy a print but there will only ever be the one original painting.

NFTs are “one-of-a-kind” assets in the digital world that can be bought and sold like any other piece of property, but they have no tangible form of their own.

The digital tokens can be thought of as certificates of ownership for virtual or physical assets.

How do NFTs work?
Traditional works of art such as paintings are valuable because they are one of a kind.

But digital files can be easily and endlessly duplicated.

With NFTs, artwork can be “tokenised” to create a digital certificate of ownership that can be bought and sold.

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Roblox: ‘We paid off our parents’ mortgage making video games’

When identical twins Ben and Matt Horton began making serious money from creating video games, their parents couldn’t believe it.

“It was quite bizarre at first, because I was doing a paper round and they were blown away,” says Ben. “They said there was no way a paper round can make this much.”

His brother Matt adds: “It was a significant amount of money. They thought we were doing shady stuff online.”

As it turned out, the brothers had produced their first big hit – a game called Boat Ride, launched on the online gaming platform Roblox – and they were just 13.

Seven years later, Ben and Matt work full-time on gaming, with Ben specialising on the software side and Matt doing video production.

Their games have been played more than 100 million times and each of them earns £100,000 a year.

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