ShiftPixy (NASDAQ: PIXY) shares are volatile. PIXY stock jumped by more than 14% on Tuesday morning, continuing the strong growth it achieved at the start of the week. Unfortunately, it was down nearly 10% by the end of the session.
The early uptick in price came as the company announced an NFT gamification feature for its app.
The gig economy staffing firm’s NFT loyalty program is expected to incorporate augmented reality tied to brand NFTs, which will be available to consumers that sign up for ShiftPixy’s food brand ordering apps. Consumers will be able to use NFTs to win rewards, such as free drinks or snacks.
The move to capitalise on the popularity of NFTs and metaverse projects comes as the business is looking to expand into the quick service restaurant and ghost kitchen space.
ShiftPixy Co-Founder and CEO Scott Absher said:
“We intend for our brands to immerse our consumers into an augmented and mixed reality experience that will test every tradition and legacy in consumer marketing.
“We believe that this will show the world a high-value use case for monetizing the metaverse. As we move forward with this endeavour, we plan to increase our offerings and boost our footprint in the digital world.”
But what is ShiftPixy and why does the stock need a shot in the arm?
Will ShiftPixy Recover?
The company runs an app of the same name which serves as a workforce management platform for operators who largely rely on gig economy employees. It aims to smooth the process of hiring casual workers by helping operators adhere to employment law, while also claiming to help workers by offering them benefits such as health insurance.
The company has been on the NASDAQ since June 2017, when its IPO raised $12m through the sale of 2,000,000 shares at $6.00 each. But it has been tricky going since then, with the share price dropping to the $1.55 it sits on at the time of writing.
So, is this jump in share price the start of a return to form for the troubled stock, or is it simply the short-term boost that customarily accompanies the launch of an NFT or metaverse project?
The latter seems more likely for now, but short-term wins aren’t always a bad thing.