There is a lot of hype around cryptocurrency, NFTs, and blockchain technology. It is essential to understand that NFT is not just a buzzword. Technology has the potential to revolutionize many industries, especially the financial sector.
NFT stocks are backed by tangible assets and not just arbitrary numbers on a computer screen. The tokens represent ownership of physical assets like shares in companies, real estate, art pieces, etc., and can be traded on exchanges or transferred peer-to-peer.
Despite some claims that NFTs are a speculative investment, the NFT market demonstrates that NFT sales will continue to rise. Let’s take a look at some of the best NFT stocks.
1. Dolphin Entertainment
Dolphin Entertainment is a company that sells premium content and entertainment. The company has been in the business for over many years and has been able to grow its revenue by more than 10% annually.
Dolphin Entertainment, West Realm Shire Inc., and FTX.US partnered in 2021 to develop an NFT platform for big sports and entertainment companies. It has a market capitalization of around $75 million and had $24 million in sales last year. Hall of Fame Resort & Entertainment and the firm struck an NFT partnership last year. Following the news that a large section dedicated just to NFTs will be created, the company’s stock price progressively increased.
The marketplace would reportedly draw on Dolphin Entertainment’s marketing skills as well as FTX’s crypto expertise. The NFT marketplace aims to bring together the biggest names in media, entertainment, technology, gaming, lifestyle, charitable organization, cinema, and, most important sporting activities.
2. Funko
Funko is the world’s largest manufacturer of licensed pop culture collectibles. The company manufactures and distributes a wide variety of products from more than 100 licenses. Funko is best known for its signature vinyl figure line, which has become the largest and most popular line of collectibles globally, with over 500 different figures to date.
In the previous four years, the firm, founded in 2017, has been diligent in making itself prominent. Funko, with brands like Funk Pop! The collection is one of the leading makers of licensed pop culture collectibles. Funko is best known for its actual collectibles and figurines; the business is eager to make a big splash in the NFT industry.
Brian Mariotti, the CEO of Funko, is open to experimenting with the company’s presence and goods in the non-fungible token arena. He believes that the sales of these tangible figurines will be linked to NFTs. Digital Funko Pop! NFT art is now available from the firm. Art packages start at $10, and specific customers will also receive a coin that can be exchanged for an actual toy.
3. Draftkings
Draftkings is the next NFT stock we’re interested in. Draftkings is a sports gambling and fanduel website that was founded in 2012. Draftkings stocks came out publicly in 2019 on the NASDAQ. You would have paid slightly under $10 per share back then. According to current pricing, the equities have gained in value by nearly 67 percent since then.
With that stated, the stock has dropped more than 70% in the last year, making it another NFT that can be acquired at a significant discount. Draftkings has subsequently developed a scheme that delivers new sports-related tokens on a regular basis, increasing its access to NFTs.
4. Takung Art Co. Ltd.
Takung Art Co. Ltd. is a Hong Kong-based company that provides various internet platforms for artists. It also manages and operates an art investment fund, which invests in the art market.
Takung Art Co. Ltd was founded by a group of arts professionals with experience in the global art industry and has been listed on the Stock Exchange of Hong Kong Limited since 2008. This stock illustrates how the NFT frenzy may quickly increase a stock’s value. It increased in value by about 300 percent in a single day. Takung Art is a real art gallery that specializes in Asian art. It is unusual in that it allows for asset sharing.
This allows additional investors to enter the market by allowing numerous people to possess an artwork. Even though Takung Art does not yet trade in NFTs, investors are anticipating the business to do so shortly.
5. Cinedigm
Cinedigm entered the NFT sector with a lot of intrigues. It’s a marketing agency established in New York that focuses on movies, television series, and other short and long forms of entertainment. Its catalog has some of the top movies and TV series available on the market, making it stand out. Furthermore, Cinedigm has aggressively expanded its offers by purchasing additional content holdings and developing distribution agreements. The business confirmed the debut of Fandor Selects in April 2021.
The company’s goal with Fandor is to release limited copies of iconic films. In unrelated NFT news, Wizard Brands has introduced its own NFTs. The fact that Wizard Brands owns a minority share in the streaming platform, which Cinedigm handles, adds to the assumption. Experts believe that this might lead to two firms collaborating in the field in the near future. However, suspicions about a possible connection might make it one of the best NFT stocks to buy.
6. Plby Group
Plby Group is a company that specializes in the production and sale of video games. It has been in operation for over two decades. The company has its own NFT marketplace known as Rabbitars.
The Rabbitars NFT marketplace was launched in December 2021. It was created to provide a platform for gamers to buy, sell, and trade their digital assets with other gamers. Liquid Summer was the company’s inaugural NFT collection. This collection sold in less than three minutes. Since then, the firm has grown to the limit of what NFTs can do. It has worked with well-known artists such as Shantell Martin on projects such as SuperRare and Metaverse performances in Decentraland.
The brand expects consumers and other vital stakeholders to profit from its service. Rabbitars NFT marketplace is not the only one of its kind on the market as there are several other competitors such as UtopiaGame’s.
7. ZK International Group
The company is the largest steel manufacturer in China, and it has a long history of producing quality products. On July 21, the firm announced that xSigma Corporation, its research, and development arm, has completed smart contract development in anticipation of the opening of an NFT marketplace. The firm has a market capitalization of $81 million and generated over $86 million in sales last year.
ZK International Group was established in 1999, and it is headquartered in Shanghai. In 2017, ZK International Group’s revenue was USD 7.3 billion, and it had a net income of USD 1 billion. The company’s shares trade on the Shanghai Stock Exchange under the ticker symbol “1138”.
The company produces many different types of steel products for customers all over the world. Their products range from the coil, wire rod, rebar, wire mesh, and plates to other steel-related items. ZK International Group has an annual production capacity of 2 million tons per year, with its ability to produce raw materials at 1 million tons per year.
8. eBay
eBay is a great place to buy and sell goods. They are also an excellent platform for digital trading assets. They have an in-built mechanism for buying and selling digital assets.
Because of the NFT craze, eBay, the eCommerce online shopping site, has included NFT trades on its site. This is a well-known corporation with a lengthy history of providing outstanding physical collection facilities. This indicates eBay isn’t new to collectors; they’ve been there for quite some time. However, eBay now feels they can use their large audience to drive into the upper NFT tiers.
The company has been involved in the virtual goods industry for a long time now. They have been selling games, in-game items, and other virtual goods for years now. And with the introduction of blockchain technology, this has become easier than ever before.
Tips to Buy NFT Stocks
When investing in NFT stocks, you need to focus on the tips that have been proven to work. These tips will guide you and help you make the right decisions.
- Do your research and know what you are buying into.
- Diversify your portfolio with a variety of tokens, not just one or two.
- Buy tokens that have a good use case for the future and are backed by a strong team.
- Look for projects with real-world use cases and not just speculative ones.
Risks that You Should Keep in Mind before Investing
Investing in blockchain and cryptocurrency is a bit risky business. The most common risks that you need to consider before investing in NFT stocks are as follows:
- Market risk: This is the risk of loss from adverse changes in the general level of securities prices.
- Liquidity risk: It means when an investor will not be able to sell their security for a price close to or equal to its purchase price.
- Counterparty risk: In this, one party will not live up to their obligation under a contract, leading to financial loss for both parties.
- Inflationary pressure: The percentage rate at which prices rise over time, due primarily to increases in the money supply.