TKAT Stock: Why NFT Play Takung Art Is Soaring 150% Today

Investors in Takung Art (NYSEMKT:TKAT) and TKAT stock have already focused on the company’s innovative business model. Indeed, finding companies that do things differently is a strategy that has outperformed in this market.

Concept art for "Crypto Art" NFTs.

Source: Shutterstock

Takung has created a marketplace for shared ownership in fine art in Asia. Examples of fine art included on the company’s platform are calligraphies, paintings, jewelry and precious gems. The platform essentially allows investors to go in on art deals together. The ability to have multiple groups bidding on various fine are pieces has driven prices higher, and made partial owners rich.

However, the focus has recently shifted among many investors in TKAT stock toward the blockchain. A number of reports have circulated prompting speculation that TKAT stock could be a play on the non-fungible token (NFT) space.

What Are Non-Fungible Tokens?

The rise of non-fungible tokens (NFTs) as the latest crypto craze has sparked interest among collectors.

Perhaps the best real-world example of what an NFT is, is a first-edition item (book, trading card, etc.). One can own any mass-reproduced copy of a given book, but first-edition books that are destroyed can’t be replaced.

Non-fungible tokens take images, videos or other files that can be encrypted and do much of the same. A limited number of NFTs of a specific painting or rare artifact are created. Supply and demand dictate the prices investors are willing to pay for these collectible items. The blockchain ensures the authenticity of these items, reducing risks around forgery that exist in the world of collectors today.

Some NFTs have already sold for as much as $70 million. Yup, that’s right. One digital image just sold for a life-changing sum of money.

Why TKAT Stock Is an Interesting Speculative Play

Momentum in the NFT market is insane right now. This is reflected in the 170% increase in TKAT stock investors are seeing today.

The incredible momentum behind NTFs could continue to drive near-term outperformance. If investors are willing to pay for these non-fungible tokens, then they’re worth something. While I remain skeptical of this entire market, due to its nascency and early development stage, there’s clearly intense interest here.

Whether Takung officially moves into this space or not is another risk investors need to keep in mind. Speculation can make our imaginations go wild, but until there’s a formal announcement, I’d recommend extreme caution with this stock.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.


Article printed from InvestorPlace Media, https://investorplace.com/2021/03/tkat-stock-why-nft-play-takung-art-is-soaring-100-today-crypto-art/.

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