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More investors are looking for NFT stocks, as more and more people are getting involved with digitized assets. NFTs (Non-Fungible Tokens) are gaining traction, and interest is coming from all directions. NFTs allow creators to digitize pretty much anything, examples include:
- Physical or digital art
- Tweets
- GIFs
- Video game avatars
- Videos
- Music
- Real estate
The thing about NFTs is that they are unique and cannot be copied. Some of the most expensive ones have sold for tens of millions. These sky-high prices are clearly driving the interest of a lot of people eager to get in on the next big thing.
NFT Stocks: What Are They?
At the moment, NFTs work on the Ethereum blockchain. Which is a good thing, as the security protocol is second to none. However, for the time being, there is no public company that only dedicates its operations to creating NFTs.
On the other hand, several companies are involved in some way or another with NFTs. These companies are getting a lot of interest from investors that feel that NFTs provide revenue income and growth opportunities.
However, we have found ETFs that invest in companies that generate revenue from activities in blockchain, cryptocurrency, and NFT-related activities (NFT Stocks). A couple of examples include the Bitwise Blue-Chip NFT Index ETF and the Defiance Digital Revolution ETF.
How to Invest in NFT Stocks
NFTs were created in 2014, as the blockchain technology that cryptocurrencies run on produced an opportunity for creators to digitize their work. The interest has risen rapidly for NFTs and the possibility of a token becoming a multimillion asset has materialized.
Various companies are trying to cash in on the movement, either offering their own NFTs, like asset manager VanEck or operating some kind of business involving digital tokens. So, if you are looking for exposure to the NFT industry, several stocks may be of your interest.
Let’s have a look at 10 NFT stocks you can invest in, to garner returns from the growing momentum. Always speak to your financial advisor before making any investment decisions. What follows is simply a list of companies that are involved in NFTs and is not in any way a recommendation.
NFT Stocks to Buy
Let’s take a look at some stocks of companies that operate in the realm of NFTs. Not all NFT stocks have NFT creation and trading as their main activity. The company may simply incorporate NFT use or tradability of showcase these digital artworks.
McDonald’s Inc. (MCD: NYSE)
McDonald’s may not be an obvious choice for NFT stocks. However, the fast food chain of restaurants first engaged in the NFT space in 2021 when it launched NFTs to commemorate 40 years of its popular McRib Burger. McDonald’s started dropping NFTs via twitter in late 2021in honor of the event. The burger franchisor is also planning to get involved in the metaverse. The company has already filed a patent for McDonald’s in the metaverse, where you can virtually walk into a McDonalds restaurant and order food. You will then get the order delivered to you door in the physical world.
Source: YahooFinance
Dolphin Entertainment Inc. (DLPN: NASDAQ)
This company is an independent entertainment marketing and premium content development firm. The firm’s clientele includes the film, music, television, and gaming industries. It also offers services to social media influencers, creative branding, and production. DPLN operates its business through various subsidiaries:
- 42West
- The Door & Shore
- Fire Media
- Viewpoint Creative
Source: YahooFinance
DPLN is one of the few companies that can boast a whole division dedicated to NFT enterprise. The company has recently announced (August 2021) a joint venture with the cryptocurrency exchange, FTX.US. The joint venture will operate an NFT marketplace. According to the JV partners, the marketplace is a consumer-facing and large-scale business.
eBay Inc, (EBAY: NASDAQ)
This is possibly the most well-known stock on the list and an industry leader in online commerce. The company has seen a sharp increase in value from the bottom of the stock market selloff due to the pandemic. Over the course of 2021, it has also become involved in the NFT marketplace.
Source: YahooFinance
The eCommerce operator started allowing users to buy and sell NFTs on its platform, in early 2021. Later in 2021, the company teamed up with Oregon Ducks football player, Kayvon Thibodeaux to make one-of-a-kind canvases for his fans.
Cloudflare Inc. (NET: NASDAQ)
Cloudflare is a Software as a Service company that offers many solutions for businesses and consumers to connect worldwide. The company is a major player in web security and server infrastructure. The company is pushing NFT usage through its Stream service.
Source: YahooFinance
Cloudflare allows creators to publish their videos online without having to worry about quality, storage, or FFMpeg documentation. Some creators want to take control of their ownership rights, and more and more are turning to NFTs for this purpose. Video creators can now publish their content as NFTs, allowing them to keep full control of ownership.
Shopify Inc. (SHOP: NASDAQ)
Shopify supplies businesses looking to create an online eCommerce presence. Their platform allows users to create an online shop for their products, and handle payments. Their services also include handling shipping if required. The company caters to clients around the globe.
Source: YahooFinance
Shopify has also decided to get in on the NFT train and allows merchants to use NFTs on their storefronts. Their idea is to boost merchants’ brands using NFTs to increase exclusivity, memberships, and access to exclusive content.
Funko Inc. (FNKO: NASDAQ)
This company is well known for the small characters in famous films and series with supersized heads. Some of these Funko Pops, as they are called, sell on the secondhand market for hundreds and even thousands of dollars. The company is also involved in other merchandise lines including wallets, keyrings, and backpacks among others.
Source: YahooFinance
Funko has partnered with dropp.io to offer its Funko Pop fans NFTs based on collectible mini-figures. The NFTs are available through a special website and are released (dropped) on specific dates. All the past sales of their NFTs were sold out. Some of the NFTs are also exchangeable for a physical Funko Pop.
Takung Art Co. Ltd. (TKAT: NYSE)
Takung Art’s main business is selling physical artwork, mainly Asian. Its unique feature is the capability to allow multiple investors to share ownership of the same piece of artwork. This aspect allows for a larger investor base.
Source: YahooFinance
On April 29, 2022, Takung Art announced the launch of its online NFT platform, www.nftoeo.com. The platform allows dealers, creators, and investors to connect in a digital art marketplace. While an update from the company on May 5, 2022, highlighted that the platform had listed more than 60 products. With 40 transactions, and 107 new registered users.
Marathon Digital Holdings Inc. (MARA: NASDAQ)
Marathon Digital Holdings is an American company based in Las Vegas, Nevada. The firm’s main business is mining cryptocurrencies, it currently holds 8,115 Bitcoins. On December 28, 2021, the company announced it had acquired 78,000 miners from Bitmain.
Source: YahooFinance
The company is focused on the DeFi (Decentralized Finance) ecosystem, currently, the firm’s main business revenue is from mining. However, due to its focus, it is in a position to enable users to buy and sell NFTs and digital assets.
WISeKey International Holdings Inc. (WKEY: NASDAQ)
WISeKey is a cybersecurity company that operates globally, and also offers other services such as software as a service, cloud-based management and signing solutions, and infrastructure hosting and monitoring services. The company is based in Zug, Switzerland.
Source: YahooFinance
In November 2021, the company signed an agreement with Luminaries21.com and OISTE.org foundation for the development of high-end NFTs. The combined resources will target NFTs to develop and fund solutions targeted by the United Nations global sustainable goals.
PLBY Group Inc. (PLBY: NASDAQ)
The company operates in the pleasure and leisure industry worldwide. It’s the holding group of Playboy, and through its subsidiaries offers lingerie, adult content, lifestyle products, and apparel for men and women.
Source: YahooFinance
The company started in the NFTs space in early 2021, when it launched its first collection of NFTs that sold out in 3 minutes. In October 2021, they launched another NFT collection, Rabbitars. Then, on May 4, PLBY Group, under its brand name Playboy, partnered with blockchain auction-hub Nifty Gateway to showcase their digital artwork.
DraftKings Inc. (DKNG: NASDAQ)
DraftKings is a digital sports betting and gaming company operating in the US and globally. The company offers fantasy sports games, and sports betting across a host of professional sports worldwide. And the firm also offers online casino and gaming software for retail sportsbooks and gaming.
Source: YahooFinance
DraftKings also runs an NFT marketplace, specifically aimed at NFTs of famous and legendary sports athletes. Examples of their NFTs include Tom Brady, Simone Biles, Tiger Woods, and Usain Bolt. The company first dropped a collection of its NFTs on August 11, 2021. And on December 11, 2021, the company announced that it was launching a collection of Pro-football NFTs licensed by the NFL players association.
Wrapping Up
The movement for NFTs is growing ever more rapidly of late. In January 2022, Bloomberg reported that NFT sales had surpassed $40 billion from January 2021 to mid-December. While Jefferies sees the NFT market reaching an estimated $80 billion by 2025.
No doubt investing in NFTs with the largest price tags comes with risk. So, always seek advice from your financial advisor before committing cash to risky assets. However, with the rise in cryptocurrency investing and the interest from traditional financial institutions, it looks like virtual coins and the ecosystem it has created are here to stay.
Investing as an individual can be as arduous as navigating the stormy high seas. Fortunately, several companies provide specialized and professional assistance when it comes to making investment decisions. You can read reviews about the top investment newsletters here.
Gino D'Alessio is a Broker/Dealer with over twenty years experience in various OTC markets such as Bonds, FX and Derivatives. Currently a Financial Markets and Investments Writer & Analyst
