The search for stocks related to non-fungible tokens (NFTs) is heating up, and investors are racing to find profits. Behind the interest in NFT stocks is the reality that the crypto assets are continuing to stir up mainstream awareness. Celebrities like Jack Dorsey and Elon Musk have tried their hands at offerings, and brands are also entering the ecosystem.
Are you the type of investor looking to exchange high-risk for the potential of high-reward?
NFT stocks are a fickle thing. Some companies, as you will see below, are actually trying their hand at NFT offerings. Others are soaring to new heights on a combination of web sleuthing and social media speculation. This means that the early stage trend is red hot, but also incredibly risky.
As you consider these companies, be sure to weigh the risks and do your own research into what makes them stand out. Do you like that they align with NFT interests or blockchain technology? Are their businesses fertile ground for future crypto deals? Do they maybe already have NFT offerings generating revenue? There is clearly money to be made in the space — with digital artist Beeple netting nearly $70 million for one piece — but there is also money to lose.
With all that in mind, here are the top 10 NFT stocks InvestorPlace is watching now.
- Takung Art (NYSEMKT:TKAT)
- Jiayin Group (NASDAQ:JFIN)
- Oriental Culture Group (NASDAQ:OCG)
- Liquid Media (NASDAQ:YVR)
- Hall of Fame Resort & Entertainment (NASDAQ:HOFV)
- Funko (NASDAQ:FNKO)
- Cinedigm (NASDAQ:CIDM)
- Color Star Technology (NASDAQ:CSCW)
- WiseKey (NASDAQ:WKEY)
- KBS Fashion Group (NASDAQ:KBSF)
NFT Stocks: Takung Art (TKAT)
So where does the hype come from? Takung Art bills itself as an online trading platform for fine art, with a specialty focus on Asian art. Based in Hong Kong, its platform allows users to sell and purchase whole pieces of fine art. More interesting to investors, however, its its business model that encourages shared asset ownership. Takung offers listings in paintings, calligraphies, jewelry and precious gems. And as the company tells it, it wants more people to be able to participate in the art market without fear of forgery or price manipulation. Its platform, combined with lower costs of entry through shared asset ownership, should hopefully bring more investors to the art world.
Takung also elaborates on its business model. It says it makes money through listing fees, trading commissions, agent fees and management fees. This does give investors some transparency into an otherwise little-known equity.
Although TKAT stock represents an interesting art trading platform that closely aligns with NFT interests, there are two reasons for caution. The first is that Takung does not currently use NFT blockchain technology to conduct its sales. Investors have simply been bidding up shares in hopes of such a business move. The second is that there is limited information on the investor relations site. Takung has not updated many elements of the website for years, with the last info on current artwork dating back to 2018.
Before you dive in, this is a company that certainly merits some heavy research.
Jiayin Group (JFIN)
The story with Jiayin Group (NASDAQ:JFIN) is even more speculative.
JFIN stock is certainly not one that many investors are tracking. Although it hit the Nasdaq Exchange in May 2019, its average daily trading volume is low. Prior to the NFT craze hitting Wall Street, many days saw less than 100,000 shares trade hands. This means that Jiayin group is also quite familiar with trading volatility.
So what is Jiayin? And where does the NFT stocks story come in? Jiayin bills itself as a high-tech finance company operating in Shanghai. According to its English-language website, it uses data analytics and fintech research to help connect customers and financial services. Jiayin also advertises its affiliate Geerong, a related fintech company. Geerong has a presence in Vietnam, Indonesia, Philippines, India and Mexico, where it focuses on fintech delivery.
Investors should proceed with caution here while noting the high interest in JFIN stock. All links to the NFT world are speculative, tying to a series of tweets starting in December 2020.
NFT Stocks: Oriental Culture (OCG)
Oriental Culture (NASDAQ:OCG) should feel very familiar in the NFT stocks space. Like Takung, the company offers an online platform for fine art based in Hong Kong.
However, unlike Takung which places focus on the benefits of shared ownership, Oriental advertises itself an online marketplace that goes above and beyond for customers. It says it wants to build up its offerings, such as through launching an e-commerce service chain. The company already offers investor education, account opening, market research, customer support and artwork warehousing services. This helps it attract listings from a wide variety of individuals.
So where is the NFT connection? Also like Takung, Oriental Culture already facilitates the online sale of fine art and collectibles. Its platform includes sculptures, pottery, stamps, coins and paintings. Investors similarly hope the newly public company could integrate NFT tech to its sales platform.
Be cautious here, too. Oriental Culture may make sense in the NFT space, but the company has yet to communicate any blockchain plans.
Liquid Media (YVR)
Canadian Liquid Media (NASDAQ:YVR) brings video games into the NFT stocks space.
Essentially, the company bills itself as a business solutions powerhouse in the entertainment world. Customers can use its solutions to package, finance, deliver and monetize any of their video-based intellectual property. Touting its end-to-end solutions, Liquid Media says it helps launch professional TV, film and video game IP into the world.
For investors, it seems that the video game component is the most interesting right now. Liquid Media currently highlights games that have relied on its solutions like All-Star Baseball and AFL Live franchise games. Other featured names include Antz Racing, Battle Monsters and Blast Lacrosse. This library of video game content has investors considering just how YVR stock could fit into the NFT stocks madness.
Here is where the web sleuthing comes in. Liquid Media recently signed a distribution agreement with Atari. As a result, its video-on-demand platform will now be available on the new Atari hybrid console. While this is good news for Liquid Media in terms of expanding the reach of its intellectual property, it also ties into NFT speculation. This is because Atari recently signed a deal with the platform Bondly for gaming NFTs.
Putting it all together, investors are hopeful Liquid Media can find itself with a Bondly deal of its own.
NFT Stocks: Hall of Fame Resort & Entertainment (HOFV)
Hall of Fame Resort & Entertainment (NASDAQ:HOFV) just came public in the summer of 2020, but that is not slowing down the NFT hype.
Essentially, Hall of Fame completed a merger with a special purpose acquisition company to hit the public markets. Its goal now is to create a Hall of Fame-type destination for NFL fans. Investors should note that it currently operates the Hall of Fame Village. The company wants to take this existing site and add multiple fields, a waterpark, a convention center and spaces for esports and sports betting. Consider this almost a Disney World for football lovers.
These plans alone are not responsible for the NFT stocks speculation, but they do help.
Professional sports have found a hungry audience in the NFT and crypto realm. Trading card sales are soaring on the blockchain, and the NBA has found success with the Top Shot platform. Now the NFL wants a slice of the non-fungible token pie. According to a March 17 announcement, the professional football league is setting off to develop an NFT strategy. To investors, Hall of Fame seems like an obvious choice.
Even if the NFL deal fails to come to fruition, Hall of Fame is powering ahead with NFT plans. It announced a partnership yesterday with Dolphin Entertainment (NASDAQ:DLPN) to create exclusive sports-related non-fungible tokens. Keep this company on your radar.
Toy manufacturer Funko (NASDAQ:FNKO) already is a stock that many collectibles fans track. That is because the company produces rare and otherwise in-demand toys through brands like its Funko Pop! collection. These brands rely on a series of licensing agreements to appeal to customer interests in characters from movies, TV shows, video games and so on. Top figurines currently include She-Ra, a glow-in-the-dark Mike Wazowski and a headless Ned Stark.
You likely have noted that Funko is all about physical collectibles — figurines you can hold and put on display. However, CEO Brian Mariotti is ready to enter the NFTs space.
In a recent interview, Mariotti said that he believes Funko is in a unique and desirable space to profit from non-fungible tokens. He said that he imagines linking digital NFT sales to physical figurines, and focusing their digital offerings on especially rare licenses. For instance, he said he could see selling a rare NFT, and then giving the purchaser a free physical collectible.
Although Funko has not officially launched its NFTs, it seems that this is a less speculative bet. Keep FNKO stock on your radar then if you are looking for more tried-and-true NFT stocks options.
NFT Stocks: Cinedigm (CIDM)
Cinedigm (NASDAQ:CIDM) joined the NFT stocks space along with Funko, rallying on some powerful social media speculation.
Cinedigm is a digital entertainment company with a focus on video-streaming and online movies. Importantly for investors, it has a well-stocked content library with movies and TV episodes available on its platform. Also importantly, Cinedigm has been taking steps to expand its offerings, acquiring other content libraries and forming distribution partnerships.
So where does the NFT stocks pitch come in? As InvestorPlace contributor William White wrote recently, this story is also quite speculative. A company called Wizard Brands (OTCMKTS:WIZD) announced the launch of its NFTs. Wizard Brands holds a minority stake in CONtv, a service that streams Comic-Con. It turns out that Cinedigm works with Wizard Brands to operate this service.
Connecting the dots, investors are betting that Wizard Brands and Cinedigm will expand their business relationship to include NFTs. While this angle is less speculative than others, it still merits caution.
Color Star Technology (CSCW)
Investors are just getting hip to the latest NFT play, Color Star Technology (NASDAQ:CSCW).
Color Star is a primarily a digital learning and entertainment platform. The company advertises a line-up of popular instructors that teach courses focusing on their specialties. Customers can then tune in and go through the entire library of courses. Popular courses include dance lessons from Taiwanese dance star Bowan Wang and instrument lessons from Zhihao Zhu, a singer. Color Stars says that while it is based in Hong Kong, it also has operations in Beijing, Taiwan, Shanghai, Thailand and Cambodia. And in addition to its platform, it is also responsible for a popular music festival.
Enter the NFT hype. About a week ago, Color Star announced that one of its subsidiaries had entered an agreement with Doman. Together, they plan to leverage blockchain technology to launch a copyright trading platform. There, investors could trade copyrights for everything from art to other intellectual property.
Although investors in CSCW stock face risks from its tiny size (a market capitalization close to $100 million), this at least means Color Star has explicit ties to the NFT world.
NFT Stocks: WiseKey International (WKEY)
WiseKey (NASDAQ:WKEY), a company based in Switzerland, bills itself as a cybersecurity company that helps create digital identity ecosystems using blockchain tech, artificial intelligence and the internet of things (IOT). It says its microchips have uses in connected cars, smart cities, crypto tokens, anti-counterfeiting devices and beyond. Importantly, WiseKey highlights that customers trust its products because it uses blockchain technology for authentication and to secure online transactions.
This makes WiseKey perhaps a more obvious pick among NFT stocks.
And more importantly, WiseKey has already made some explicit moves in the non-fungible token space. Last week, the company announced that it had developed an NFT application that uses its digital identification technology on the blockchain. This digital ID tech can help its customers secure, authenticate and prove ownership of their digital assets. As WiseKey puts it, it is clear that NFTs can play a huge role in countering fraud and forgery with art ownership. Now, the company wants to expand the potential uses of the crypto assets.
While it remains to be seen if digital identity verification excites investors as much as other use cases, some retail investors are already getting on board. With concerns about cybersecurity front and center, the latest NFT tech from WiseKey could be a big deal. Keep a close eye on WiseKey and WKEY stock.
KBS Fashion Group (KBSF)
The last of the NFT stocks is another highly speculative play.
KBS Fashion Group (NASDAQ:KBSF) is a China-based retailer that specializes in casual menswear. The company says that it has a long track record of designing, manufacturing and marketing its own fashion goods, and those goods also include footwear and accessories. To make these sales, it has a network of 51 KBS stores in China, and sells through a variety of brands. Investors may be interested to know that KBS Fashion traces its history back to 1976, with the branding of Keep Best Style. The company incorporates this understanding of fashion, art and culture into its identity.
Although this is an interesting retailer on its own, it seems that social media hype is helping create links between KBSF stock and the NFT frenzy.
Through one of its subsidiaries, KBS Fashion also has access to Luxventure. For those unfamiliar, Luxventure is a social media platform that launched in July 2020. Retail investors have identified that Luxventure is interesting because the platform allows cross-border merchandise and luxury tourism experiences for its members. Could this be fertile ground for future NFTs?
Some investors think so, but only time will tell. Keep KBSF stock on your radar.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.