Investing in NFT stocks is one of the newer trends in the stock market today. Non-fungible token (NFT) sales have shot up more than $2.5 billion in the first six months this year. The explosion in popularity is evidenced in the fact that NFT sales stood at just $94 million for all of 2020.
NFTs allow for the digitization of rare collectibles, including merchandise, music, and art. It enables creators to monetize their work digitally. The technology behind the industry is the same that runs the Ethereum (CCC:ETH-USD) blockchain.
Overall, the long-term viability of NFTs is worth keeping tabs on. Naturally, it appeals to users due to similar features and dimensions of blockchain technology. With that being said, you might be interested in investing in a few NFT stocks.
Here are three of the most promising ones gathering a lot of attention on Reddit.
NFT Stocks To Buy: Funko (FNKO)
Washington-based toy powerhouse Funko has performed relatively well and held its own despite the crippling effects of the pandemic. The company markets and licenses a wide variety of lifestyle products, including housewares, apparel, toys, accessories, and other items. However, of late it is moving into the fast-growing NFT space, which has investors excited about FNKO stock’s long-term prospects.
Funko CEO Brian Mariotti states that “We have the ability to disrupt this space in a way that nobody else is doing right now. We can tie digital NFTs to our fan base and link entities with physical products.”
Moreover, the company has some exciting licenses in the works, which it will market using NFT giveaways. Like other new players in the NFT space, Funko is using NFT as an effective form of advertising.
The company has been doing exceedingly well from an operational standpoint and is recently coming off a blowout second quarter with triple-digit revenue growth. FNKO stock is a top NFT stock to invest in at this time.
Dolphin Entertainment (DLPN)
Dolphin Entertainment is an entertainment and content development company providing a variety of PR services to its clients. It essentially provides publicity and strategic marketing services for clients for a fee. However, with its 2.0 initiatives, it plans to develop its assets, the most lucrative of which include NFTs.
Dolphin’s NFT division is involved in designing, distributing, and promoting its clients’ NFTs. Its 2.0 initiatives plan to partner with creators to sell NFT collectibles on the FTX crypto exchange.
Dolphin believes that it can sell these NFTs are high prices. For instance, its football-themed NFT tokens are available for over $25 and can be bought via credit card, which allows for greater market size. As a result, DLPN stock has a healthy growth runway ahead. Its six-month returns have been at a stellar 110% and continue to outpace the market returns.
NFT Stocks To Buy: ZK International (ZKIN)
ZK International produces high-performance stainless steel products. In the past few years, though, it has been diversifying its operations and focusing on digital technologies. In leveraging opportunities in other industries, it is looking to augment its core business.
It launched xSigma Corp in 2018, a segment that focuses on investments in blockchain technology. The department has investments in NFTs, decentralized finance and crypto derivatives. Specifically, in the NFT space, it will be launching a NFT marketplace later this year, based on the Ethereum blockchain.
Moreover, there are plans to merge with Polkadot (CCC:DOT1-USD) as well. Additionally, its recently formed subsidiary xSigma Collectibles is partnering with men’s lifestyle brand Maxim to launch an NFT marketplace for the brand. With several opportunities on the horizon, ZKIN stock is poised for big gains in the coming months.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.