The art world and the investing world are colliding in the strangest of ways recently, and Takung Art (NYSEMKT:TKAT) stock is a big indicator of the role non-fungible tokens (NFTs) play in this trendy industry.
Takung Art, a dealer of fine Asian art, is providing a service that not many other arthouses offer. The company is allowing group ownership of its assets, which enables multiple bids on individual art pieces. This sharing of assets is driving bids sky-high and is indicative of the coming change to the art world.
With NFTs becoming exponentially more popular, there is a lot of speculation behind Takung Art. Investors are fervently searching for stocks that allow them to get in on the new tech. Because of Takung’s interesting business model, many think a future NFT platform by the company is likely. As such, we are seeing the company’s share prices soar. This morning, TKAT stock was up as much as 23%.
7 Things to Know About TKAT Stock
With all this said, here are some things that you need to know about Takung Art now:
- The Takung portfolio is widely varied. The art seller deals in paintings, calligraphy, jewelry and precious stones.
- Takung’s portfolio of Asia-specific art is good for its buyers, as the Chinese art industry is one of the most rapidly growing fine art industries in the world.
- The partial ownership model that Takung employs ensures that almost anybody can bid on fine art, a concept that is very new.
- Individual buyers can sell their ownership shares at any time. But typically, the listings are sold after 10 years of ownership and profits are then split among owners.
- Takung already has an e-commerce platform which allows artists to sell directly to buyers.
- Takung Art’s market capitalization is very small, at just over $313 million.
- While investors are clamoring for stocks tied to NFTs, all speculation of Takung launching an NFT platform is just that: speculation. Nothing is set in stone for the future of TKAT stock, so be very careful.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.