The non-fungible token (NFT) frenzy may have a new name to feed on: Color Star Technology (NASDAQ:CSCW). In Wednesday’s pre-market activity, CSCW stock is up 37%.
NFTs transform digital works of art and other collectibles into one-of-a-kind, verifiable assets that are easy to trade on a blockchain.
As we saw this past Monday, NFTs continue to captivate investors, and the search for related stocks continues. Takung Art (NYSEMKT:TKAT), Jiayin Group (NASDAQ:JFIN) and Hall of Fame Resort & Entertainment (NASDAQ:HOFV) rocketed to start the week as part of the speculative frenzy.
However, while the above-mentioned names have no explicit ties to the realm of NFTs, Color Star does. On March 16, 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.
One of the more interesting elements of that collaboration is a focus on “entertainment copyright blockchain” which leads us back to NFTs. Color Star says it will use this platform to eventually launch a copyright trading platform to allow people to share and trade their copyrights on the blockchain for different things (including art) and other intellectual property.
CSCW Stock Pops on Platform Promise
The NFT connection to CSCW stock was clear in last week’s tie-up announcement.
“The development of this platform should make future copyright exchanges more open and fluid. A platform user who is currently unknown, but has strong creative abilities, might use this platform to help showcase his hidden talents; the copyright exchange platform of the Color Star APP may quickly match him to those who can appreciate and understand the value of his work,” according to the press release.
Earlier this month, InvestorPlace Markets Analyst Thomas Yeung advised readers of the “right way” to invest in NFTs, writing that “investors should focus their efforts on unique pieces that seem wildly underpriced.”
But he warned buyers should stay within their area of expertise and interest. Know art? Buy art. Know sports? Buy sports.
That’s not unlike what famed stock investor Warren Buffett calls your “circle of competence,” telling investors to stick to areas they know when they are deciding what companies to invest in.
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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.
