The stock market is facing a rollercoaster ride ever since NFT stocks have gained the hype. Marketers are going crazy to find the best NFT stocks to invest in it. Everybody wants to know that what is this new hype is all about and What are NFT stocks, why are these stocks gaining popularity, is it worth buying or just ballyhoo? How to buy NFT stocks and which are the best NFT stocks? The most asked question is the difference between Cryptocurrency and NFT stocks?
What are NFT stocks?
Before diving into the ocean of these questions why not know about NFT stocks first. The exact and technical definition of NFT stocks is – NFT is the abbreviation to non-fungible tokens, these are irreplaceable investments made on unique stocks like a painting, or art piece etc. In simplified terms, the fungible things are cash, cryptocurrency or even simple products that are common in the market and you can replace it with other products.
Now let me explain the fungible products with examples- when you give one dollar to somebody, it remains a dollar and does not lose its value. You can purchase anything in exchange for money, of similar value. Next, we have- if you are giving 1 kg rice to somebody, you can take the money worth 1 kg rice or take anything in exchange. Moreover, rice is a unique or special product. With cryptocurrency too, if you have bought 5 bitcoins, it will remain 5 bitcoins whether you keep it or transfer it to somebody.
In simpler form, anything that can be replaced or exchanged with similar value and don’t lose its worth is fungible products and anything that cannot be replaced is non-fungible. The word token represents the product or the thing. The most interesting part of NFT stock is that it can be anything, literally anything, but it has to be unique and that’s the reason of high NFT stock price.
NFTs are typically distinctive, or one of a piece of very limited stock, and have unique identifying codes. “Essentially, NFTs create digital scarcity,” says Arry Yu, chairman of the Washington Technology Industry Association Cascadian Blockchain Council and managing director of Yellow Umbrella Ventures.
Non-Fungible Token
You might be wondering that why am I highlighting ANYTHING? You need to know that Twitter’s CEO Jack Dorsey has sold his first tweet as an NFT for $2,915,835.47. Yes, you read that right. That was a TWEET. This was the first-ever tweet made on Twitter. Let me tell you what the tweet was- “just setting up my twttr”.
Nyan Cat is a remarkable artifact of the internet from the 2010s. On the 10th anniversary, the video’s developer planned to turn it into an NFT and auction it there. The video was sold for a whopping 300 ETH, which is equivalent to about $852,300 at the moment of writing.
This is the list of a few things which can turn into NFT-
- A unique digital artwork
- An exclusive pair of sneakers
- An in-game item
- An essay
- A digital collectable
- A domain name
- A ticket that gives you access to an event or a coupon, and many more
You might have got a basic idea of what are NFT stocks. Read the full article to clear your doubts.
Why is NFT gaining popularity?
Each NFT has a uniqueness also known as a unique digital signature. Usually, the NFTs are bought with the cryptocurrency– Bitcoin or Ether or any other. A blockchain maintains the data of transactions that happened for NFT stocks. The digital objects available on the internet like images, videos, music, gifs, text and even tweets, can take a shape of NFT through a specific procedure.
The artwork and other assets available in digital format can be “tokenized” by its creators. This is done by generating unrepeatable digital certificates and signatures of ownership, and that creates NFTs. Later, they sell it digitally and create records. Buying NFT is like breaking the internet with the news of owning something that costs million dollars. People like to own something expensive or unique, it is a psychological thing.
Also Read– Best Multibagger Stocks
Should You Buy NFT?
NFTs has been rising the excitement level of millennial, they too want to own one. But the obvious questions trigger their minds- Is NFT worth buying? What is the future of NFT?
Some of the experts believe that it is a bubble meant to pop off whereas few great minds believe that it will stay for a longer period. So you should invest smartly. It is not required for your company to buy Non-Fungible Token, but if you want to buy or something is worth the cost then you can. Keep in mind that NFTs don’t have registered value, so anyone who is bidding for high money can have it. Your company cannot resell it until someone wants it and might have to sell at it lose or maybe profit too. NFT is a risky investment, don’t buy it just because it’s trendy.
5 Best NFTs to invest in
Here is the top NFT stock list from NFT companies that you should not take for granted. These are the few best NFT platforms that are going to do wonders in future.
DraftKings
DraftKings has launched an NFT marketplace, preferably for athlete-related NFTs. This company is the top name in sports gambling, so moving to NFTs is a natural fit. DraftKings seems to be seeing NFTs most profitably. Latest NFT drops looks similar to sports cards with a little more posh-y and more ease of trading. And if Gen-Z is looking to buy NFTs instead of cards, then this is a great move for DraftKings because the company is selling NFTs from athletes like Tom Brady, Wayne Gretzky, and more.
DraftKings’ system will run on Ethereum Layer 2, which is ascending solution to handle the increased transition load on the Ethereum network, and by the end of the year, the company expects its NFTs to be exchangeable to external digital wallets. If sports NFTs take off, DraftKings can be a winner in the market.
Cloudflare
Cloudflare, a cloud services provider that guards and boosts the performance of the internet, is an infrastructure play in NFTs. The company’s Cloudflare Stream enables video/content creators to attach their content to NFTs, saying it allows “creators to embed their NFT claim to ownership into their video on Cloudflare Stream.” The motive is to allow access to a video to those who possess NFT.
The likeable part about Cloudflare is that it’s looking for ways to make NFT, a useful digital asset. There are zillion possible uses of NFTs beyond just selling JPEGs, so if companies start making contracts with NFTs or tie physical asset ownership to NFTs, then this could be a big market. Videos could be a stepping stone to more assets and NFT structures.
Cloudflare is actually an appreciable way to invest in NFTs’ enlarging infrastructure needs. By providing the company’s history of innovation on the cloud, this company could be a practical winner in the long term.
EBay
One of the organic internet marketplaces, eBay, is also taking its crack at NFTs. The company allows the sale of a few NFTs on its original online platform but that may prove to be just a start if the company opens up to cryptocurrencies and other digital benefits.
EBay is opting for some different ways to connect to NFTs from its competitors. The company still wants dollars of sales right now, rather than depending on cryptocurrency, which is used in most NFT transactions on OpenSea. Taking the ideal currency can make an eBay NFT more useful to the population than a cryptocurrency-based NFT platform. Ebay could be an organic buyer, and a highly liquid one, especially if the crypto and NFT market face a panicky situation.
Dolphin Entertainment
Let us know what Dolphin Entertainment (DLPN) is. In brief, DLPN is an entertainment marketing and premium content creation company. DLPN has the expertise in offering well-planned marketing and publicity services to reputed brands all over the world. The company’s current work is not restricted to shooting film, television, music, gaming, and the hospitality sector. Apart from it, DLPN provides creative branding, production, social media, and influencer marketing services as well. These services are making DLPN a go-to for companies searching to build their brand in this digital world.
The company has its own NFT division too and the company’s clients create, manage, and market NFTs. This provides DLPN with a more extensive suite of marketing services provided by the current NFT craze. A few months back, the company launched an NFT marketplace in collaboration with cryptocurrency exchange operator, FTX.US. Both believe that the marketplace is a “large-scale” and “consumer-facing” venture.
DLPN is very hard at work on the digital marketing front. As of a few months earlier, the company started working with Fandom. Fandom is the world’s biggest fan platform and source for “in-depth information on pop culture”.
ZK International Group Co., Ltd.
ZK International Group Co., Ltd. (NASDAQ: ZKIN) is a Chinese company working in the steel business industry. It is also placed on the list of best NFT stocks to buy. On July 21, the company declares that xSigma Corporation, a research and development department of the firm, had completed the smart contract development for the launch of a non-fungible token marketplace. The company also announced that the contract had cleared an audit by Hashex. The marketplace was expected to go live that summer.
ZK International Group Co., Ltd. has a market capitalization of $81 million and posted more than $86 million in revenue last year. It was established in 2015 and more than 350 people are working here. The interest on the stock is 3.88%.
How do NFT work?
NFTs exist on a blockchain, which is a distributed public ledger that records and checks every transaction. You must be familiar with blockchain as the basic procedure which makes trading in cryptocurrencies possible.
To be precise, NFTs are basically working on the Ethereum blockchain, though other blockchains support it too. The NFT is created, or “minted” from digital objects that represent both materialistic and non-materialistic products like-
- Art
- GIFs
- Videos and sports highlights
- Collectibles
- Virtual avatars and video game skins
- Designer sneakers
- Music
and many more.
Most importantly, NFTs are like physical collector’s items but these are in digital form. So instead of getting an actual (physical) piece of art to hang on the wall, the buyer possesses a digital file instead.
Furthermore, they get an exclusive right to own the piece. It’s accurate: NFTs can have only one owner at a time. NFTs’ unique data makes it very convenient to verify their ownership and trade tokens between owners. The owner or creator can also store some details inside them. For example, if an artist wants to add their signature to their artwork, then they can add in the NFT’s metadata.
How to invest in NFT stocks?
If you are looking to invest in NFT stocks or want to start collecting, you have to keep a few things in mind beforehand-
➤ You are supposed to have a digital wallet where you can store NFTs and your cryptocurrencies.
➤ You have to buy cryptocurrency too, like ether or bitcoin.
➤ First, you have to confirm which currency is acceptable to your NFT supplier.
➤ You can use your credit card to buy crypto from the companies like coinbase, PayPal etc
➤ Then you will be able to shift it from the exchange to your wallet of choice.
➤ You can now purchase NFT of your choice
Don’t forget to go through the research. Most exchanges charge at least a percentage of your transaction when you purchase cryptocurrency.