27 min to read.
What are nft stocks
How to invest in nft stocks? What is the best NFT share?
Table of Content
- NFT Stocks: Top 10 NFT Share
- What are NFT shares?
- The top 10 NFT stocks
- Draft Kings
- PLBY Group (Playboy)
- Liquid Media
- Hall of Fame Resorts & Entertainment
- Tips for investing in NFT stocks
- 1. Broker for NFT stocks
- 2. Take profits
- 3. Sufficient diversification
- 4. Investment Fees
- 5. Right investment strategy
- Is an investment in NFT shares worthwhile?
- Advantages and disadvantages of an NFT share investment
- Opportunities of an NFT share investment
- Risks of an NFT share investment
- Alternatives to NFT stocks
- Buy NFT with Crypto.com
- NFT Stock Forecast
- Buy NFT Shares - FAQs
NFT Stocks: Top 10 NFT Share
Is there such a thing as NFT stocks? A non-fungible token is a digital asset that can take the form of art, photographs, videos, and audio stored on a blockchain ledger. Retail investors as well as hedge funds invested heavily in NFTs in 2021.
In spite of the fact that NFTs have been available since 2014, investors have only recently become interested in NFT trading. Blockchain, crypto and NFT hype has also been fuelled by the growing interest in the Metaverse. There are also a number of key players in the market who are increasingly interested in NFTs. For example, luxury fashion brands such as Gucci, D&G and Burberry Group plc have launched a collection of virtual wearables. Visa Inc. acquired a 24×24 pixel image from CryptoPunks' NFT collection and NIKE, Inc bought a virtual sneakers and collectibles company.
The question then becomes: Which NFT stocks are likely to benefit indirectly from the NFT boom? An investor should know which NFT stocks are recommended and should be included in their portfolio. Furthermore, this article provides instructions on how to purchase NFT stocks in a matter of minutes.
What are NFT shares?
Listed below are the top 10 NFT stocks that investors should consider purchasing. It is estimated that sales of non-fungible tokens (NFTs) reached more than $2.5 billion during the first six months of 2021. As can be seen from the figure, digital tokens are gaining popularity rapidly. As evidence of this fact, NFT sales in 2020 totaled only $94 million. Famous NFT stocks such as Twitter, Cloudflare, and Mattel should be monitored by investors interested in exploring this new market.
In addition to making NFTs more popular, these companies have also contributed to their success. A tweet about NFT posted by Jack Dorsey, head of Twitter, earlier this year sold for nearly $3 million. Through the products it offers, Cloudflare has contributed to the development of trust in digital tokens. Several celebrities have recently joined the NFT train, including Katy Perry and Jay-Z. On the anniversary of the release of Jay-Z's first album, Katy Perry announced the launch of a fan NFT.
It is pertinent to note that NFTs are fundamentally units of data stored in a digital ledger. An asset's uniqueness is verified by this ledger. The technology is used in a variety of contexts, including entertainment, gaming, and artistic expression. A NFT marketplace, OpenSea, reported a record-breaking monthly sales volume of $160 million for NFTs in June. The market for NFTs appears to be skewed in favor of buyers. NonFungible.com, a website that tracks NFT transactions, claims that since March, when the NFT craze was at an all-time high, monthly NFT buyers have surged up to 20,000 per week, outpacing sellers.
The use of NFTs in online entertainment and gaming will undoubtedly have a significant impact in the future. A changing financial landscape is affecting the entire hedge fund industry. When it comes to investing in NFTs over the long term, NFT stocks are the best option for those who do not wish to purchase NFTs themselves.
The top 10 NFT stocks
If investors want to benefit from the rising trend of NFTs, here are the best NFT stocks to do so. These stocks have growth initiatives focused on NFTs or benefiting heavily from this growing market.
It is a digital company based in the United States that provides a platform for buying and selling cryptocurrencies (crypto exchanges) in a secure environment.
Currently, Coinbase Global is one of the most popular NFT stocks since the company is preparing to launch its own NFT marketplace and has already opened its waiting list for exclusive access to launch its first collectibles. With Coinbase Global's platform, individuals can mint, collect, discover, and display their NFTs.
BofA analyst Jason Kupferberg upgraded Coinbase Global, Inc. from neutral to buy with an unchanged price target of $340 on Jan. 6. The analyst is noting increasing signs of revenue diversification alongside retail crypto trading at Coinbase Global , and believes this trend could accelerate in 2022 and beyond.
Coinbase Global is also a popular stock among hedge funds, which held around $3 billion worth of shares in Coinbase Global in the third quarter. One of the company's largest shareholders is Chase Coleman's Tiger Global Management with 2.6 million shares worth $608.8 million.
Ebay is a multinational e-commerce company that facilitates sales activities between B2Bs and B2Cs. The reason why eBay is among the top NFT stocks is that the company offers a secure marketplace where buyers can buy NFTs at affordable prices, and best of all, crypto wallets are not required. As early as May 2021, eBay was the first e-commerce company to fall victim to the NFT craze.
Additionally, eBay announced a quarterly dividend of $0.18 per share on November 29, 2021. Shareholders of record as of December 1 received the dividend on December 17. It was another successful quarter for the company in terms of EPS and revenue, as the company exceeded the market's expectations.
Ako Capital, owned by Nicolai Tangen, is eBay's largest shareholder, holding 7.35 million shares worth $512.5 million at the end of the third quarter. In the third quarter, 49 hedge funds were bullish on eBay, up from 39 funds in the previous quarter.
Boston-based DraftKings offers fantasy sports and sports betting. A fantasy sports website that includes the NFL, Premier League, UEFA Champions League, NASCAR, and UEFA Champions League, DraftKings provides users the opportunity to win money through fantasy sports competitions.
Additionally to sports betting, DraftKings also offers non-fungible tokens from sports legends like Tom Brady, Simone Biles, Tiger Woods and Usain Bolt. The first collection of NFTs from DraftKings was released on August 11th. NFL Players Association licensed gamified NFT collections will be launched by the company on December 7th.
According to a research note that previews the US gaming sector through 2022, Truist analyst Barry Jonas cut the price target for DraftKings from $50 to $30. According to the analyst, while DraftKings is a premier online-only operator, interest rates and taxes have caused sentiment to turn negative.
In total, Cathie Wood owns 17.5 million shares of DraftKings worth $844.4 million after purchasing 266,000 shares on January 11. DraftKings' largest shareholder during the third quarter of 2021 was Cathie Wood's ARK Investment Management.
Probably the most well-known product of Funko is its licensed pop culture collectibles. Due to the uncertainty in the markets, this relatively new company (founded in 2017) has demonstrated its ability to adapt. This model will be continued with the company's entry into NFTs. A 140% increase in second-quarter revenue over last year is expected to continue in the coming quarters.
TokenWave, a tracker of NFT holdings, was acquired by Funko last year for a majority stake. Additionally, Funko Digital Pop NFTs have been introduced! Packages start at just $9.99 each. A decentralized entertainment network - WAX - currently offers these services. One of the most promising NFT stocks is as a result of this additional source of income.
The price target for Funko has been raised to $25 by Jefferies analyst Stephanie Wissink from "hold". Analysts expressed increasing confidence in the medium-term growth profile of the company. Aside from this, she noted that Funko's business model is relatively "risk-free." Funko also exceeded analyst consensus estimates for earnings per share and revenue in the third quarter. It is estimated that 18 hedge funds held approximately $160 million in Funko at the end of the third quarter of 2021.
A major and well-known name in the toy business follows. As a company, Mattel has been responsible for the launch of iconic toys such as Barbie, Hot Wheels, American Girl, and UNO over the years.
Despite its success, Mattel is not resting on its laurels. The company has been relatively quiet, but has been successful in launching NFTs based on some of its most well-known brands. By engaging with its customers in this manner, the company is demonstrating that it is staying abreast of current market trends and innovating.
Mattel has already had strong sales of late . The company posted net sales of more than $874 million in the first quarter . In particular , Barbie sales shot up an impressive 87 % year over year . If the company decides to capitalize on the popularity of its Barbie line and introduce a Barbie NFT , it has the potential to become a major catalyst event . Realistically, it should only be a matter of time before we see a Barbie NFT. But if we do, Mattel will surely be one of the best NFT stocks on this list.
Mattel was created in 1945 and has a market capitalization of over $7 billion . On July 28, investment advisor JPMorgan kept an Overweight rating on Mattel's stock and raised its price target to $28 , underscoring the company's strong earnings performance.
Cloudflare, a cloud services provider that secures and improves the performance of the Internet, is an infrastructure player in NFTs . The company's Cloudflare Stream allows video creators to associate content with NFTs. The idea is to limit access to a video to those who own an NFT .
Cloudflare is exploring ways to make NFTs useful digital assets. In addition to selling JPEGs, there are numerous potential uses for NFTs. Consequently, if companies begin contracting with NFTs or tying physical assets to NFTs, the market could be large. There is potential for videos to provide access to additional assets and NFT structures.
In addition, Cloudflare is an excellent method for investing in the infrastructure needs of NFTs. It is likely that this partnership will have a significant impact on the long-term success of the company, given its history of innovation at the edge of the cloud. CloudFlare has risen to become one of the most valuable technology companies in recent years . Market cap has more than doubled since the pandemic began .
The CloudFlare platform is the company's mainstay. Public and private cloud services are protected by high-level security solutions. As well as providing business performance tools, it also offers other features. A wide range of products and services are available from the company, including content delivery packages, software development kits, website development, analytics tools, and many more.
PLBY Group (Playboy)
PLBY Group is a leisure, lifestyle and entertainment company and owner of the Playboy brand. Similar to FNKO, PLBY Group ventured into NFTs last year. The company did this through a partnership with Nifty Gateway , an all-in-one Gemini platform that can be used to buy, sell, and store collectibles and digital art.
This collaboration was designed to create a series of digital art collaborations between Playboy and Nifty on the Nifty Gateway marketplace. The company believes that its Playboy-themed NFTs may create cross-selling opportunities between its physical products and digital artworks, and it is also exploring loyalty programs.
During the third quarter of 2011, the company's CEO, Ben Kohn, outlined his strategic roadmap and stated that the group had made "significant progress" on the three strategic pillars. The expansion of direct-to-consumer (DTC) trading in the United States falls under this category. As stated by the CEO:
"Optimizing our licensing partnerships in key territories and categories and driving new recurring revenue growth initiatives with a focus on innovative digital offerings such as our upcoming launch of the CENTERFOLD creator-led platform and our NFT Rabbitars, which we aim to evolve into a membership experience."
The company unveiled its Playboy Rabbitars NFTs collection , which consists of 3D rabbit characters , in October last year . Loop Capital analyst Daniel Adam raised the price target to $50 from $29 following strong third-quarter results that saw revenue rise 67% year over year .
According to its website, WiseKey is a Swiss cybersecurity company that helps create digital identity ecosystems using blockchain technology, artificial intelligence, and the Internet of Things (IOT). There are a number of applications for its microchips, including connected cars, smart cities, crypto tokens, anti-counterfeiting devices, and more. Additionally, WiseKey emphasizes that its customers can trust its products, as it uses blockchain technology to authenticate and secure online transactions.
In addition, WiseKey has already made some explicit moves in the area of non-fungible tokens, which may make it an obvious choice for investors among NFT stocks. A blockchain-based digital identification application was developed by the company last week using its digital identification technology. With this digital ID technology, its customers will be able to secure, authenticate, and prove ownership of their digital assets. WiseKey suggests that NFTs can play a significant role in combating art fraud and counterfeiting. As a result, the company is exploring the possibility of expanding the use of the crypto assets.
Investors are already expressing interest in digital identity verification, but it remains to be seen whether this use case will excite them as much as other use cases. With cybersecurity concerns on the rise, WiseKey's newest NFT technology could prove to be a significant advancement.
Liquid Media describes itself as a powerhouse in the entertainment industry when it comes to providing business solutions. They provide customers with a set of solutions for packaging, financing, delivering, and monetizing video-based intellectual property. In addition to announcing its end-to-end solutions, Liquid Media says that it is helping bring professional TV, film, and video game IP to the world.
Investors seem to be most interested in the video game component at the present time. There are a number of games currently being highlighted by Liquid Media that have relied on its solutions, such as All-Star Baseball and the AFL Live franchise games. Blast Lacrosse, Antz Racing, Battle Monsters, and Battle Monsters are also well-known titles. Liquid Media is a NFT share, but why is it so?
This is where web discovery comes in. Liquid Media recently signed a distribution agreement with Atari . With this development, its video-on-demand platform will now be available on the new Atari hybrid console. While this is great news for Liquid Media in terms of expanding its intellectual property reach, it also connects to speculation regarding NFTs. Because Atari has recently partnered with Bondly to provide gaming NFTs.
Hall of Fame Resorts & Entertainment
Hall of Fame Resort & Entertainment didn't go public until the summer of 2020 , but that's not stopping the NFT hype.
To enter the public markets, Hall of Fame merged with a special purpose vehicle. Hall of Fame Village is currently operated by the Company. With this existing facility, the company intends to add multiple fields, a water park, a convention center, and rooms for esports and sports betting. The experience is comparable to that of Disney World for football enthusiasts.
NFT stock speculation is not solely the result of these plans, but they do contribute to it. There has been a considerable interest in professional sports in the NFT and crypto space. Trading card sales are rising on the blockchain and the NBA has found success with the Top Shot platform. Now the NFL wants a piece of the non-fungible token pie. According to a March 17 announcement, the pro league is setting out to develop an NFT strategy . For investors, Hall of Fame seems like an obvious choice.
Hall of Famer continues to pursue NFT plans even if a deal with the NFL does not materialize. A partnership was announced yesterday between the company and Dolphin Entertainment in order to create exclusive non-fungible tokens related to sports.
Tips for investing in NFT stocks
There are certain risks involved in investing in NFT stocks, but these stocks can provide high returns to risk-taking investors. In order to maximize your success when investing in NFT stocks, we have compiled the following tips:
The choice of a broker is extremely important when purchasing NFT stocks. Investing in stocks should be conducted through a licensed and regulated broker. Using a demo account is also a good way to become familiar with the functions of a new broker.
2. Take profits
By regularly adjusting the "stop loss," many brokers allow investors to lock in book profits. It is a popular trading strategy, especially among day traders. Nevertheless, when considering a long-term investment, it may be more appropriate to hold NFT shares regardless of market fluctuations.
3. Sufficient diversification
Because of the risk associated with investing in NFT shares, it is imperative that you diversify your investment widely enough. There is always a significant level of risk associated with investing in a single stock or industry sector. It is possible to reduce this risk by investing in a manner that is sufficiently diversified. For this reason, we recommend that you diversify your portfolio as far as possible in order to protect your investment. Your portfolio will be protected from company-specific and industry-specific risks when you diversify across different companies, stocks, and sectors.
4. Investment Fees
This point is particularly important for small systems. Some providers charge high fees for buying NFT shares. These high costs reduce the ultimate rate of return. For small sums, a percentage fee is often cheaper for investors than a fixed sum.
In general, it is advisable to buy NFT shares from a cheap, yet secure and licensed broker if possible . Our recommendation is the provider eToro, as they do not charge a fee for the purchase of NFT shares and are still regulated and licensed.
5. Right investment strategy
Every investor has a different investment strategy. Historically, however, it has been shown that it is advisable to buy stocks for a long-term investment.
It is nevertheless important to be clear about the time horizon and expected returns when investing. Investors should also keep in mind that stock corrections are normal. Long - term investors in particular should not be put off by short - term market corrections . With a buy & hold strategy, it is important to continue to hold stocks even in bear markets and possibly continue to invest. Because market correction phases are often the best time to increase your stake in individual stocks.
Is an investment in NFT shares worthwhile?
Yes, absolutely! The investment in NFT shares can certainly be worthwhile and can provide high returns, particularly if you make an investment on a monthly basis.
Even though the NFT craze is relatively new, it is certainly not going away anytime soon. Over $6.2 billion has been generated in sales by NFT since 2017. There is a great deal of popularity and madness surrounding non-fungible tokens at the moment.
NFT trading volume grew 38,000% year-on-year to reach $10.7 billion in Q3 2021.
There has been exponential growth in the non-fungible token industry, which shows no signs of slowing down in the near future. Cryptocurrency and NFT markets have become so bullish that any list of the best NFT stocks to buy can also be regarded as a list of the best stocks to buy in general.
To provide some perspective, OpenSea, the largest token marketplace, recorded sales of $3.4 billion in August 2021. It is evident from this that the digital NFT ecosystem has great potential.
There is great promise in the entry of companies such as Apple and Nike into the NFT market. Investors should, however, always exercise caution and only invest what they can afford to lose. As compared to traditional systems and transaction models, NFTs are comparatively newer instruments.
Advantages and disadvantages of an NFT share investment
There are advantages and opportunities associated with investing in NFT shares, as well as disadvantages and risks. In addition to profits and high returns, such a risky investment may also result in long-term losses. The strength of each share's advantages and disadvantages will, however, ultimately be determined by its particular characteristics.
Risks associated with NFT markets include a lack of regulation or little regulation. The NFT Boom only makes NFT stocks slightly riskier than traditional financial instruments. Because NFTs are still at a very early stage, they usually have a higher volatility risk. Pure NFT stocks are still a long way from becoming stable.
Investing in NFTs offers the possibility of high returns. There is no doubt that NFTs are poised for significant growth in the near future. NFT stocks should benefit significantly from these growth figures if they benefit from the growth figures. As a result of investing very early in a relatively new field, the NFT stocks we list also possess a first-mover advantage, which allows them to differentiate themselves from their competitors. In addition to NFTs, many of the featured companies also invest in the entire crypto space, so there are plenty of opportunities for profit in this space.
Opportunities of an NFT share investment
- High growth numbers
- Opportunity for high returns
- First mover advantage
- Many companies are diversified and do not only invest in NFTs
Risks of an NFT share investment
- The NFT markets are lightly or near zero regulated
- Riskier than traditional stocks
- High volatility risk.
Alternatives to NFT stocks
The best alternative to NFT stocks is to invest directly in NFTs or to purchase an NFT ETF. ETFs that are index-based allow investors to diversify their portfolios with relatively small amounts. ETFs allow you to gain exposure to a broader market, thereby reducing your risk.
A mutual fund is similar to an ETF, except that ETFs are less expensive and do not charge any exit or sales fees. With the help of an ETF, it is possible to invest in the broad NFT market for a relatively small amount of money. It is also possible to purchase NFTs directly. The risk associated with purchasing NFTs outright is greater than that associated with purchasing stocks.
Another option is to buy cryptocurrency. Cryptocurrencies like Ethereum also benefit from the NFT hype. Cryptocurrency is a volatile asset, but it is considered less volatile than investing directly in NFTs. Many experts believe that the crypto industry is still in its infancy and that cryptocurrencies will see high growth in the next few years . For example, some industry analysts are predicting that Ethereum could be worth $10,000 or more in a few years .
Buy NFT with Crypto.com
You will need an NFT marketplace if you wish to purchase NFTs directly. Our recommendation is to invest directly in NFTs without paying any fees through the provider Crypto.com. This can be accomplished very easily by following the instructions below.
How to buy NFT
Estimated Total Time
What is necessary:
Tool: A cryptocurrency market.
Register at Crypto.com
You can access the Crypto.com website by clicking the following link. For registration, you will only need to provide the usual personal information, such as your name, date of birth, and e-mail address. A confirmation email must then be sent to the email address.
By logging in to Crypto.com and clicking on Marketplace, you can review all the available NFTs, sort them by category, and search for suitable investments using the search function. It is advisable to browse around here at the beginning and examine the NFT prices, the artist behind the NFT and the price development so far.
Buy NFT at Crypto.com
The Crypto.com purchase mask is opened by clicking on the desired NFT, in which the most important information about the NFT can be viewed. Once you have chosen an NFT to be auctioned, click on the " Place a bid " button and enter your desired bid amount.The NFT purchase will be successful if the highest bidder is identified toward the end of the auction (similar to eBay)If you would like to purchase an NFT for immediate purchase on the NFT platform, simply click on “Buy for [amount]” in the purchase mask. This allows you to purchase the NFT immediately for the requested amount. Alternatively, you can use “Make an Offer” to make a price proposal to the seller.
NFT Stock Forecast
Stocks are widely recognized as one of the best investment options. The history of equities indicates that they are particularly suitable for long-term investments. This is particularly true in an environment of low interest rates.
However, the NFT movement is a relatively new phenomenon, and it provides an early example of the potential of crypto in making the digital economy more accessible to a wider range of people. Artists may find it beneficial to create and sell digital assets. However, purchasing NFTs for their collectible value constitutes a speculative investment. The value of a work is uncertain and is determined by the amount of demand for the work. NFT stocks, however, combine the advantages of stocks with the growth prospects of NFTs.
NFTs are still in the early stages of development. Although it is a promising new frontier in the world of technology, investing in an emerging movement entails many risks. To limit risk, investors should tread carefully and diversify their investments.
Buy NFT Shares - FAQs
How do I buy an NFT?
The purchase of Ethereum on a crypto exchange should be followed by the transfer of the funds to a crypto wallet. Obtain the wallet through an NFT marketplace and then purchase the NFT of your choice.
Can I invest in NFTs?
The investment in NFTs is open to anyone. As a result of the scarcity model, NFTs can range in cost from a few dollars to millions of dollars. In order to purchase NFTs, one must first possess cryptocurrency and seek out a marketplace that sells NFTs.
Are there NFT shares?
There are no NFT stocks that are directly related. The NFT movement does, however, have an impact on certain stocks. A number of these stocks are listed on the exchange, including Cloudflare, eBay, and Coinbase.
How can I buy shares in NFT?
NFT shares can be purchased by investors in the same manner as other shares. It is recommended that you invest in NFT stocks through a commission-free broker in order to save on fees and costs.
Will NFTs fail?
NFTs and NFT stocks cannot be predicted with certainty. However, many experts say that NFTs have a bright future ahead of them.