NFT stocks are backed by blockchain technology and are called Non-Fungible. They’ve become the new focus of social media trading. we’vee’ve seen how that can affect stocks. So, are these NFT stocks in which you want to invest? Or are they a flash-in-the-pan social media trend? You’ve been hanging out on Fintwit, Discord, or Reddit to figure out the hottest new investmenyou’veu’ve undoubtedly come across the acronym. You’ve probably also quickly realized that you aren’t the traditional stocks or investment vehicles you can find in your traditional equity brokerage.
But what is an NFT stock? And why should you consider this the next big thing to invest in? NFT stands for Non-Fungible Token. So, unless you’re into cryptocurrencies, you probably don’t know what that means.
A fungible token is something like Bitcoin. It can be exchanged for another Bitcoin or fiat currency without discrimination or differentiation. layperson’son’s terms, a fungible token is ubiquitous.
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NFT Stocks Introduction
Fungible tokens aren’t strictly a blockchain thing, either. A hundred-dollar bill is a fungible form of currency in that two people can swap bills. And each bill still retains the same value. Are they starting to make some sense?
Non-fungible tokens are unique. Each has a specific identity built into the Blockchain, verifying its status. In other words, every non-fungible token is like a fingerprint: one of a kind and uniquely created.
In this way, NFTs can be seen as digital certificates of ownership that cannot be refuted or compromised. When you can wrap your head around that, you can quickly realize why this would be an intriguing way to authenticate things in our increasingly digital world.
Are NFTs Stocks for Real?
Can’t both be true? There is a fierce demand right now for NFTs as they’re the latest and hottest collectible asset. The popularity of cryptocurrencies and investing has fueled the fire.
But so far, NFTs are justifying their legitimacy with massive price tags compared to their physical counterparts. Whether anything is a bubble or not is simple economics.
If the demand is there, there will continue to be a supply until the demand disappears. People will continue to make NFTs until their perceived value regresses to a mean.
In other words, will NFTs continue to be worth millions of dollars? Probably not. However, the inherent value of a certified and truly unique asset is difficult to quantify in real-life terms. The technology itself is valuable enough a vehicle to continue to make NFTs a part of our investing culture for the foreseeable future.
Examples of NFT Stocks
Over the past year, NFT stocks have exploded in popularity alongside the physical collectibles market. And, of course, cryptocurrencies. It’s not just sports collectibles or artwork that jump-started the NFT craze, but non-conventional things like videos, tweets, and even pixelated images of characters. Here are some of the most popular things that have hit the NFT market this year.
1. NBA Top Shots
Ask any sports collectible fan what the hottest product is, and they’ll each tell you without a doubt: NBA Top Shots. What are they? Vancouver-based Dapper Labs make NBA Top Shots.
They’re Blockchain-based NBA licensed collectibles that fans can collect, trade, or sell on the NBA Top Shots marketplace. Each NBA Top Shot Moment is a several-second video clip of a specific play made by that player.
At first glance, they resemble digital NBA trading cards, but each specific moment is built into the Ethereum Blockchain and certified to be unique from one another. So, are these valuable?
It depends on how you feel about NFT stocks. Some moments are ultra-rare and serial numbered to low double digits, and one such Lebron James Moment sold for USD 200,000 in February. Depending on your NFT outlook, this could be a colossal waste of money or an incredible value for the future.
2. Artwork
Several world-renowned artists have jumped aboard and turned some of their artworks into digital NFTs to auction off. Most famously, the digital artist Beeple recently auctioned off some of his work as NFTs and made millions of dollars for digital JPEG files encrypted on the Blockchain.
His most recent piece sold for $69 million, catapulting him into the top three most valuable living artists. According to the site NonFungibles.com, art NFTs account for nearly 25% of total NFT sales so far, and it is a true testament to how this technology can help begin to solve the problem of art fraud.
3. Music
That’s right; even musicians are getting in on the fun as the rock group Kings of Leon just released their latest album as an NFT, meaning each digital copy of their album is certified to be encrypted on the Blockchain.
The music industry is already buzzing about how utilizing NFT technology for album releases can help artists finally receive true payments for their work. Aphex Twin, an electronic music artist, also sold an NFT with an audio and visual component for 72 Ethereum Coins, or approximately USD 126,000.
4. Tweets
Tweets? Seriously? Yes! We truly meant anything when we said anything can be made into an NFT! The CEO of Twitter, Jack Dorsey, recently published his first-ever tweet for auction, and the current bid is a cool $2.5 million. For a tweet? You bet. It’s not what the product is; it is the scarcity and demand for that exclusivity of being digitally unique.
Square ($SQ) TipRanks Stock Forecast Report 3/24
Can I Invest in NFT Stocks?
Well, yes and no. If you mean buying shares of an NFT, then no, that is not how they work as an investment vehicle. NFTs are often sold or auctioned off on their websites and are not for trading on the stock market or any other equity exchange. NFT Stock is an oxymoron as stocks are fungible assets, so NFT Stock is a misleading and slightly paradoxical phrase.
Savvy investors may want to target companies working alongside the NFT industry, specifically in the crypto market. Remember that just as with investing in cryptocurrencies directly, buying the actual NFTs rather than the companies who manage them or sell them will always be a more valuable long-term investment. Here are some available stocks today that could potentially be a way to invest in the NFT market down the road. You’ve probably seen these gapping stocks trending on StockTwits.
1. Square (NYSE: SQ)
The fintech company Square is the most obvious player in the NFT stocks industry. We already spoke about Jack Dorsey and what he’s doing with Twitter.
But he’s also CEO of Square and is already making moves to capitalize on NFTs. Dorsey has always been a fan of cryptocurrencies and Blockchain technology.
This past year, Square became one of the first fintech companies to allow the trading of cryptocurrencies through its Cash App platform. More recently, Square bought the music streaming platform Tidal.
Many believe this is the first step towards allowing musicians to create NFTs that can be purchased and owned within the Square ecosystem.
2. Riot Blockchain (NASDAQ: RIOT)
This can go for any crypto miner, but Riot specifically mines Ethereum and Bitcoin. Why’s that important? Like most crypto mining companies, Riot will rise and fall alongside the prices of cryptocurrencies.
If you’re bullish on Ethereum and its utility as a technology and not a currency, then you may want to grab some shares of Ethereum miners before it’s too late. With the mainstream focus on Bitcoin as the crypto of choice, Ethereum has lagged in price. But the incredibly vast usage of its Blockchain makes Ethereum a potentially more valuable commodity for our future.
Stock Sectors List
List of NFT Stocks
1. Dolphin Entertainment ($DLPN)
Dolphin Entertainment Inc is in the business of producing and distributing digital entertainment content. It produced digital series and launched a feature film division dedicated to producing motion pictures for family audiences. The firm’s digital series includes Aim High, Cybergeddon, Southbeach, and films including Max Steel and Believe. Its segments include an Entertainment publicity and marketing and content production segments.
2. Funko ($FUNKO)
$FUNKO sells products to specialty retailers, mass-market retailers, e-commerce sites, and distributors. Also, at specialty licensing, comic book shows, conventions, and exhibitions.
3. Liquid Media Group Ltd ($YVR)
$YVR Liquid Media Group Ltd is an entertainment company with a content IP (Intellectual Property) portfolio spanning creative industries. Originating in Vancouver’s media and entertainment supercluster, the company’s mission is to empower storytellers to develop, produce, and distribute across channels and platforms. Its only operating segment is the investment in video games.
4. Oriental Culture Holding Ltd ($OCG)
$OCG Oriental Culture Holding Ltd is an online collectibles and artwork e-commerce service provider. The company also offers online and offline integrated marketing storage. And technical maintenance service to customers in all of China. It operates through one segment, namely, e-commerce of artwork trading. It generates revenue through listing service fees, transaction fees, and other revenue from traders.
5. Takung Art Co Ltd ($TKAT)
$TKAT Takung Art Co Ltd is a USA-based company that operates an online electronic platform for offering and trading artwork. Through its platform, the company allows artists/art dealers/owners to access a much bigger art trading market to engage with a wide range of investors. Its platform also invests in high-end artwork accessible to ordinary people without financial resources.
The company’s trading platforms comprise the sale of calligraphies and paintings, jewelry, and precious stones. It generates revenue through services in connection with the offering and trading of artwork on our system, primarily consisting of listing fees, trading commissions, and management fees.
6. Integrated Media Tech. (IMTE )
$IMTE Integrated Media Technology Ltd is developing, selling, and distributing autostereoscopic 3D displays, 3D conversion equipment, and software, developing and selling 3D autostereoscopic technology, and providing 3D consultancy services. It operates through the following segments: Development, sale, and distribution of 3D displays, conversion equipment, software, and others; sales and distribution of audio products and consultancy Services; and Corporate.
7. ZKIN ($ZKIN)
$ZKIN is a Chinese-based designer, engineer, manufacturer, and supplier of patented carbon steel pipes and high-performance stainless steel items. The products are used in restaurants, hotels, hospitals, firefighting, food, beverage, ships, engines, industrial seawater desalination and systems of direct-drinking water, cold/hot water supply, city water supply, and gas of large/middle scale construction projects.
Final Thoughts: NFT Stocks
Rarity and authentication will always be two things that factor into how something is valued. The Ethereum Blockchain and the NFT stocks technology accomplish both of these characteristics. This is why it’s so appealing to both artists and collectors.
Is a three-second clip of an NBA slam dunk more valuable than pulling an autographed rookie card of your favorite player? Probably not, but the digital version can never be stolen, can never be damaged, and can never be counterfeited.
Maybe NBA Top Shots are not the best example, but legitimate art and music are sold daily online. Art fraud is a multi-billion dollar global industry. And artists may have just found their way of defending their work. Even if you don’t believe that NFTs will be a legitimate investment in the future, there’s no denying that Blockchain technology is changing how we view authenticity in everyday objects.
