For the second time in less than a week, Color Star Technology (NASDAQ:CSCW) has surfaced on investors’ radar as a name to know in the non-fungible token (NFT) niche. CSCW stock is up more than 70% in pre-market trading on Tuesday morning.
The surge follows the Chinese firm’ s announcement earlier today that it is developing a business for the production, release and promotion of NFTs through a wholly owned unit. That business will tie NFTs to various copyrights, concerts, artist videos, TV programs, music, museum collections and celebrity-exclusive product designs, according to Color Star’ s press release.
NFTs transform digital works of art and other collectibles into one-of-a-kind, verifiable assets that are easy to trade on a blockchain.
Last week, the company announced it would team with Grammy-nominated DJ Steve Aoki on new music and entertainment properties. Earlier this month, CSCW revealed an agreement between a subsidiary company and Doman to provide blockchain technology support for Color Star’s interactive entertainment platform software, known as Color World APP.
CSCW Stock Gains Fueled By Broader NFT Frenzy
Little-known CSCW stock has been gaining in recent weeks as NFT frenzy has made headlines across global art and investment markets. The tokens have become a way to sell ownership of reproducible digital artifacts or other multimedia creations.
A one-of-a-kind digital collectible item created out of a New York Times technology column sold for more than $500,000 in an auction last week, the first such sale in the history of the newspaper. Days later, NFTs of four never-published photos of former Israeli Prime Minister Golda Meir visiting Kenya in 1963 were offered on the OpenSea auction site for $399 to $799.
As for Color Star, the company said it is negotiating cooperation agreements with a number of blockchain technology companies and platforms to launch its NFT for its services and products, with the “latest creations expected to soon be revealed.”
It plans on incorporating augmented reality (AR) technology into NFTs to produce not only traditional 2D visual products, but also new creations presented in 3D, resulting in diversified NFT applications.
From the velocity in this morning’ s pre-market trading, investors can’t wait.
With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.