The NFT share powered by blockchain technology and known as Uninfected Token. They have become the new focus of commerce on social networks. And we’ve seen how that can affect stocks. So are these NFT stocks one of the stocks you might want to invest in? Or are they a flash in the social media trend?
If you’ve been hanging out on Fintwit, Discord, or Reddit looking for the hottest new investments, you’ve surely come across the acronym NFT. You may also quickly find that these are not traditional stocks or investment vehicles that you might find on your traditional stockbrokerage exchange.
But what are NFT securities? And why should you consider this the next big investment? NFT stands for Non-Fungible Token. So if you’re not into crypto, you probably still don’t really know what that means.
A fungible token is something like bitcoin. It can be exchanged for another bitcoin or fiat currency; no difference or difference. For the layman, fungible tokens are ubiquitous.
The fungible token isn’t necessarily a blockchain thing either. Hundred dollars is a form of exchangeable currency that two people can use to exchange bills. And every note retains its value. Is starting to make sense?
Non-fungible tokens are absolutely unique. Everyone has a specific identity that is built into the blockchain; Check its status. In other words, any non-fungible token is like a fingerprint; Unique and uniquely processed.
In this way, the NFT can be viewed as a digital certificate of ownership that cannot be refuted or compromised. Once you figure that out, you’ll quickly understand why this is such a compelling way to authenticate things in our increasingly digital world.
Over the past year, the popularity of NFT stocks has exploded along with the market for physical collectibles. And of course cryptocurrencies. It’s not just sports or art collections that sparked the NFT craze, but also the unconventional like videos, tweets, and even pixelated images of characters. Here are some of the most popular ones to hit the NFT market this year.
Ask any sports collector about the hottest product and they’ll no doubt tell you: NBA Top Shots. Who are you? NBA Top Shots are made by Dapper Labs based in Vancouver.
They are a blockchain-based NBA licensed collection that fans can collect, trade, or sell on the NBA Top Shots Marketplace. Each NBA Top Kick Moment is a seconds-long video clip of a specific game being played by that player.
At first glance, they resemble digital NBA trading tokens, but each specific moment is built into the Ethereum blockchain and certified as absolutely unique to each other. So are these worthwhile?
Several world-famous artists have jumped on board and converted some of their artwork into digital NFTs for auction. Most famously, digital artist Beeple recently auctioned some of his work as NFTs and made millions of dollars on digital JPEG files encrypted on the blockchain.
In fact, his latest work sold for a record $ 69 million, making him one of the top three most valuable living artists. Art NFTs account for nearly 25% of all NFT sales to date, according to the website NonFungibles.com, and this is evidence of how technology can help fight such art fraud.
It depends on how you feel about NFT stock. There are some extremely rare moments and they are numbered down to the low two-digit numbers. One such Lebron James Moment sold for $ 200,000 in February. Depending on your NFT prospects, this can be a huge waste of money or incredible future value.
That’s right, even musicians join in because the rock band Kings of Leon just released their latest album as NFT, which means that every digital copy of their album is certified.
There is a lot of discussion in the music industry about how artists using NFT album release technology can get real money for their work. Electronic music artist Aphex Twin also sold an NFT with audio and visual components for 72 Ethereum coins, or about $ 126,000 at the time of this writing.
Tweet? Serious? That’s right! When we say anything can be made into an NFT, we really mean it! Twitter CEO Jack Dorsey recently posted his first tweet for the auction and the current bid is $ 2.5 million. For a tweet? You bet. It’s not the product, but the scarcity and the need for exclusivity in order to be digitally unique.
If you’re looking to buy shares in an NFT, no, they don’t really work as an investment vehicle. NFTs are usually sold or auctioned on their own website and are not intended to be traded on the exchange or any other exchange. In fact, NFT stocks are an oxymoron in that stocks are fungible assets, so NFT stocks is certainly a misleading and somewhat paradoxical phrase.
Now savvy investors may want to target some of the companies working with the NFT industry, especially in the crypto marketplace. Remember, just like investing directly in cryptocurrencies, buying actual NFTs rather than being managed or sold by companies is always a more valuable long-term investment. Here are some stocks available today that could potentially be a way to invest in the NFT market.
The most obvious game in the NFT stock industry right now is the fintech company Square. We talked about Jack Dorsey and what he does on Twitter.
But he’s also the CEO of Square, and he’s taking steps to take advantage of NFT. Dorsey has always been a fan of cryptocurrencies and blockchain technology.
Last year, Square was one of the first fintech companies to enable cryptocurrency trading through its Cash App platform. Square recently acquired the music streaming platform Tidal.
In fact, many believe this is the first step in enabling musicians to create NFTs that can be bought and owned within the Square ecosystem.
This can apply to any cryptocurrency mining company, but Riot specifically mines both Ethereum and Bitcoin. Why is that important? Like most cryptocurrency miners, Riot will go up and down with the price of the cryptocurrency.
If you are optimistic about Ethereum and its uses as a technology rather than a currency, you might want to snag some stocks of Ethereum miners before it’s too late. With the mainstream focus on Bitcoin as the cryptocurrency of choice, Ethereum is lagging behind in terms of price. But the immense use of blockchain makes Ethereum a more valuable commodity for our future.
No clear answer? NFTs are in great demand right now as they are the newest and hottest collectibles. The popularity of cryptocurrencies and investments certainly lit the flames.
But so far, the NFTs justify their legitimacy with some high price tags compared to their physical counterparts. Everything that is a bubble or not is simple economics.
If the demand persists, the supply will persist until the demand disappears. People will continue to make NFTs until their perceived value drops to the average.
In other words, will the NFT continue to be worth millions of dollars? It is not certain. But the inherent value of a certified and truly unique property is difficult to quantify in reality. The technology itself is valuable enough to make NFT part of our investment culture for the foreseeable future.
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