It appears that the latest trend in the non-fungible token (NFT) frenzy is here: NFT stocks. After a few Redditors highlighted the intersection between penny stocks and NFTs, investors have been looking for options. Today, this interest helped names like Takung Art (NYSEMKT:TKT), Oriental Culture (NASDAQ:OCG), Liquid Media (NASDAQ:YVR) and Integrated Media Technology (NASDAQ:IMTE) soar. So what do you need to know?
As a quick refresher, NFTs are a form of crypto asset, and they are quickly gaining mainstream relevance. Offering verified and unique ownership of everything from digital sneakers to historic tweets and new music, money is flowing into the space. Elon Musk, Post Malone, Jack Dorsey, Azealia Banks and Taco Bell have all tried their hand at NFT offerings.
With so much money (as much as $70 million) flowing into NFTs, it makes sense that investors are looking for ways to profit from the trend. Starting with a series of Reddit posts about NFT penny stocks, it appears that an investing thesis was born. It seems that a few more speculative pieces about emerging blockchain companies pushed things over the edge. Today, so-called NFT stocks really took off.
Takung Art provides an online marketplace for fine art with a specialty focus on Asian art. Although it already provides shared ownership, TKAT stock gained 277% today on hopes it could truly move into NFT offerings. Oriental Culture is very similar, hosting an online platform for the sale of collectibles, sculptures and even stamps. OCG stock gained nearly 77% on hopes it too could move its art sales to the blockchain.
Then, things get even more speculative for NFT stocks. YVR stock gained 62% on hopes Liquid Media could enter the world of video game NFTs. The connection? Liquid Media has a distribution deal with Atari, which has a NFT deal with Bondly.
What to Know About the NFT Stocks Rally
So what else do you need to know right now?
There is no denying that the speculative interest in NFT stocks is very powerful, or that it makes sense. Pretty much every artist and celebrity seems to be leaning into NFT offerings. Investors are flocking to the offerings for nostalgia and for hefty returns. Just like with blockchain and mining plays, NFT stocks could be picks and shovels plays in a red-hot business. However, TKAT, IMTE, YVR and OCG stock are not explicitly tied to the NFT business. For investors, that means it is very important to proceed with caution.
Keep these names and the NFT stocks theme on your radar. No doubt, you will be hearing more about it soon.
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.
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Read More: Penny Stocks — How to Profit Without Getting Scammed
