Loopring Struggles after GameStop Announcement, Can LRC Rebound?
Ethereum-based token, Loopring (LRC), has hit a lot of stumble blocks recently following speculations about the role of the network in the non-fungible token (NFT) trading platforms, and the allegations about the C.E.O of the company exit.
Loopring Mishaps
Loopring company has had it rough recently when GameStop, an American video consumer electronics, announced blockchain network Immutable X as the developer of its NFT marketplace. Loopring and Immutable X are both layers~2 networks, and all emphasize zk~rollups as a proof method. The rollups used by the networks offer a reduced gas fee on the Ethereum network.
LRC bulls could be drawing back their horns amid the announcement. The news comes after the sudden departure of the company C.E.O Daniel Wang, a big blow to the Loopring company. Coincidentally, Wang announced the news a few moments after GameStop’s Immutable X announcement.
A closer look at the details shows that Loopring has high hopes for the LRC crypto, which already posted an 8% loss. However, this is not out due to GameStop’s announcement despite the similarities between immutable X and Loopring. The network stated that both platforms would ultimately be a more viable option for the GameStops NFTs trading platforms.
GameStop’s Announcement
Today morning, GameStop filed an 8~K document with the U.S Securities and Exchange Commission stating its relationships with the Immutable X. Digging deeper, the document stated that Immutable X would be working in hand with Loopring on the Network Platform. An 8~K is a required document to be filed whenever important news reaches the stakeholders.
According to the 31 paged document, there is a more detailed perspective of the project’s plans to develop the infrastructure for GameStop’s coming NFT exchange. The document further states that Immutable X will be the only protocol integrated by the company into this platform; Loopring will come afterward. Investors on Twitter speculate provision of the general infrastructure, Loopring, will be integrated to streamline trades better afterward.
Therefore, the threads seen are considered a well-choreographed piece of information for a bearish public. The LRO Crypto assured the public and investors that Loopring is here to stay and plans to go nowhere. Loopring, despite facing these struggles, has made an announcement contrary to those of GameStop’s that there will be an expected LRC price hike in the coming days.
