3 NFT Stocks Profiting from the Digital Asset Buzz – Entrepreneurs | Jewelry Dukan

Much like stocks related to cryptocurrency, cannabis and electric vehicles rallied sharply a few months ago, we are seeing new speculative trading activity from non-fungible token (NFT) companies. If you are unfamiliar with NFTs, they are units of data backed on a digital ledger called a blockchain. NFTs can be just about anything digital, including art, videos, music, video game items, and even tweets.

Supply and demand are the main drivers of the price of NFTs and it is quite obvious that there is high demand from collectors, investors and others. Some NFTs have sold for millions of dollars, including an artwork titled “Everydays: The First 5000 Days” by crypto artist Beeple, which sold for a whopping $69 million. As investors currently speculate on the future potential of companies that are or may be involved in NFTs, there have been some wild moves in the price of their shares.

Even if you’re skeptical about NFTs and their future, it doesn’t hurt to familiarize yourself with some of the stocks that are benefiting from the digital asset craze. Let’s take a look at 3 NFT-related stocks that are benefiting from widespread interest in this burgeoning industry.

WiSeKey International Holdings (NASDAQ:WKEY)

With WiSeKey International Holdings you have the perfect example of a company turning the current NFT craze into a hype. WiSeKey is a global cybersecurity company providing secure communication solutions for people and objects using technologies such as blockchain, AI and IoT. The stock rocketed higher this week, climbing over 100% during Wednesday’s trading session on news that the company would launch WiSe.ART, a type of technology that provides a digital certificate of authenticity for NFTs. Since digital artwork and files can theoretically be copied an infinite number of times, something that can help authenticate and prove the buyer’s ownership could prove very valuable.

Takung Art (NYSEAMERICAN:TKAT)

Another company benefiting from the rise of NFTs is Takung Art, a Hong Kong-based company that offers an online art trading platform. The company’s digital art marketplace does not support NFTs, nor has the company openly announced that it will trade in NFTs. That means the recent rise in the stock price is pure speculation. Given the volatility and the fact that the price is up over 1000% in March, investors and traders should be very cautious when planning to buy Takung Art.

Dolphin Entertainment Inc (NASDAQ:DLPN)

This NFT-related stock has rallied over 289% so far in March and has seen massive spikes in volume this week. Dolphin Entertainment is an entertainment marketing and production company that provides strategic marketing and advertising services for various brands. The big news that sent shares soaring this week was the announcement that the company has formed a new division that will be dedicated to developing, producing, publishing and promoting NFTs for itself and clients within the company . Dolphin is also partnering with Hall of Fame Entertainment Resort (NASDAQ:HOFV) to offer non-fungible tokens that allow fans of professional football and sports to buy and sell exclusive sports-related NFTs. Given the existing market for sports collectibles, it’s easy to see the profit potential for a company that combines sports and NFTs.

Final Thoughts

The market cap of most of these companies has grown exponentially thanks to the massive craze for NFTs. As such, investors and traders should be extremely cautious about adding positions to these NFT-related stocks given the potential for volatile price swings over the coming weeks. Keep in mind that many of these companies are unprofitable and could fall just as quickly as they recovered.

That being said, it seems that NFTs are here to stay and there will no doubt be some winners to emerge from the rise of this new industry. With the NFT space still in its infancy and shaking up the art world, it might not be a bad idea to keep an eye on the aforementioned companies. Just remember that these stocks are not for risk-averse investors.



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