NFTs are still an emerging technology. But they can potentially change how we interact with everything from money to art, to real estate, and even our identities. NFTs are just a fancy word for digital assets like crypto collectibles, crypto-games, and digital art. They represent a new ownership era building on blockchain technology but with its unique innovations.
What Are NFT Stocks?
If you’re familiar with economics, you might have heard the term “fungible.” A fungible asset is interchangeable or identical to the other units of its type. So, for example, units of valuables such as gold are fungible — no matter how many equivalent units an individual possesses, each part of the total stock remains equal. Likewise, each dollar bill in your wallet is also fungible because it’s a similar product to every other unit. A non-fungible token is a term used to refer to unique pieces of digital art — that can take the form of digital artwork, gif, gif, tweet, or even a digital trading card. So basically, anything digital can be digitized and sold as a non-fungible token (NFT) on the blockchain. And people are excited about using it for digital art. Why are non-fungible tokens (NFTs) so popular right now? First, we saw digital artists like Beeple selling artwork for $69 million and Jack Dorsey’s tweet selling for $2.9 million. These are some of why digital collectibles have enjoyed such immense success.
How Do NFTs Work?
NFTs are limitless. After Dorsey tweeted about them, the market expanded even more. $700,000 for an artwork by Sophia the Robot. You can’t even imagine how much farther this industry will go. The New York Times column’s crypto tokens sold for $560,000. And that was just one of them. The beauty of non-fungible tokens is that you can upload them to an NFT marketplace and sell it immediately. On a proof-of-work blockchain, its unique identification and ownership are authenticated. This process uses the same system behind popular cryptocurrencies like Ethereum, Bitcoin, and other well-known currencies. The majority of NFTs use the Ethereum platform. However, there is growing interest in using Cardano and Polkadot’s platforms instead. That explains why Cardano and Polkadot have recently made significant gains within the crypto sector.
Are NFT Stocks the Right Investment for You?
If anybody asked you what NFT stocks were in the past, you’d probably stare at them blankly. Nonetheless, optimism has recently driven Wall Street to rise in a slew of tech equities. As already stated, some of these have little to do with the NFT specialty. However, investors believe the companies will gain exposure to NFTs. It’s tough to say whether NFT stocks will take off for good right now. As you can see, earlier in the decade, crypto and pot stocks skyrocketed. So there is a good chance NFT stocks will soon deflate if history is anything to go by. However, there’s something brewing behind the scenes. Non-fungible tokens are explosively popular this year. To put it simply, the total annual non-fungible token sales for 2020 are only $94 million. Still, the first month of 2021 already shows a significant improvement. This sudden rise may be evidence that NFTs are now the future.
DraftKings, the online sports gambling company, added a marketplace for non-fungible tokens (NFTs). The company is well-known for making bets, so it’s natural to see them make this transition. In addition, DraftKings is using NFTs to capture the attention of sports card collectors. Like traditional cards, these limited-edition items are exclusive and easy to trade. However, they are different in that sports card collectors buy them rather than cards. The popularity of these “NFTs” among young collectors shouldn’t be a surprise considering they come from athletes like Tom Brady, Wayne Gretzky, and more. DraftKings will use Ethereum’s secondary layer, specifically designed to handle more transitions on the Ethereum network. If NFTs for sporting events become popular, DraftKings could be one of the brands leading the charge.
Cloudflare, which provides the infrastructure that secures and enhances the performance of the internet, has created a new service called Cloudflare Stream. This innovation will be like YouTube, but with more NFTs. Cloudflare Stream allows anyone who holds an NFT to view a video by embedding their claim to ownership in the video itself. Cloudflare is looking for ways to make NFTs more than just a digital asset. Cloudflare sees the potential for NFTs to be used in many different ways that could come in handy for businesses. Another example is tying physical goods to NFTs, leading to an entirely new market. Videos are just one way to get there.
One of the first internet marketplaces, eBay, also wants a piece of the new NFT market. The company sells some NFTs on their traditional online platform, but it might not stop there. If they allow cryptocurrencies and other digital assets, they’ll have a real chance at taking the market. EBay’s approach to NFTs differs from that of its major competitors. They want to focus on sales in USDs, rather than crypto, for now. It might seem like a more sensible option because it’s available to the masses.
Funko offers a diverse lineup of licensed products from all your favorite brands. Funko currently offers deals with Star Wars, Marvel, National Football League, and Harry Potter. In addition, Funko is now venturing into the world of non-fungible tokens by taking a majority stake in TokenWave, which creates mobile apps and websites for tracking and displaying NFTs. Funko’s newest venture is the development of NFTs of its famous brands. Tokenhead, Funko’s new NFT platform, will display all of Funko’s NFTs in one place. Is this just a fad? Time will tell. But according to the last fiscal quarter, Funko saw a significant increase in stocks, going from $10.38 to $20.55 a share.
5. Liquid Media
Liquid Media was considered a minor video game developer until 2021. It is famous for developing the semi-popular smartphone game “Ancient Aliens.” However, the corporation is now heavily investing in non-fungible tokens. Since May, Liquid Media has had a new initiative named “Red Carpet NFTs.” The goal is to create NFTs of well-known Hollywood actors from the past and present, also classic and popular films.
6. Jiayin Group
The business is a finance platform that links borrowers and investors. Jiayin claims to run a secure and safe network that allows for transparent, safe, and quick interactions between investors willing to lend funds and those who want money. Jiayin intends to use Bweenet Network Technology Company to produce non-fungible units rather than mining Bitcoin using the fundamental blockchain technology. Jiayin is tight-lipped about its specific objectives, but it is evident that the corporation is entering the cryptocurrency world. As a result, JFIN’s stock nearly doubled in value in 2021, rising from $3.05 to $6.06 per share.
WISeKey is a Swiss firm that focuses on digital and online security, including NFT protection. WISeKey, which began as a typical cybersecurity firm, is now actively running a platform that protects NFTs. The company produced its NFTs earlier in 2021, which contained patented security procedures to secure digital collectibles. By all accounts, the outcomes were a success, and people were impressed. WISeKey is looking to build its security procedures to include e-wallets and other safeguarding methods and keep cryptocurrencies and assets like NFTs in the future. It is a business that should expand in unison with the NFT market and the worth for NFTs. People paying millions for an NFT will, understandably, want to keep it safe.
Twitter has a net worth of over $50 billion and posted over $3.7 billion in revenue in 2020. The firm’s founder, Jack Dorsey, traded his first tweet as an NFT for more than $2.9 million in March 2021. TechCrunch, a tech news website, revealed in June that Twitter was currently producing NFTs. BMO Capital held a Market Performance rating on Twitter shares on July 30th, raising the valuation from $65 to $70. BMO stated that while the rating stayed neutral, there could be growth triggers ahead.
It was created in 1945 and now has more than $7.6 billion market capitalization. The New York Times stated on June 17th that the company would shortly start a small sale of NFTs. Three digital art pieces would be auctioned off utilizing blockchain-based NFTs as part of the deal. The company recently outperformed the market in revenue and earnings per share.
10. PLBY Group
PLBY was established in 1953. It has a market capitalization of more than $1 billion. Playboy, the firm’s lifestyle brand, announced on July 9th that it would collaborate with the Miami Beach Art Collection to exhibit NFT art. PLBY’s stock price increased by more than 2% following the announcement.