Not everyone is in the market for a single non-fungible token — some people need to make several small investments to build out their crypto portfolio. Buying an NFT stock could be a great way to diversify your holdings, giving you the best of both worlds: exposure to the crypto space, with plenty of options. If you’re looking to dip your toe into the crypto scene, here are our recommendations for 15 great stocks with ties to the NFT industry.
Table of Contents
NFT Stocks vs. NFTs
NFT stocks are publicly traded companies whose business model in some way, shape, or form revolves around the non-fungible token scene.
Non-fungible tokens are digital assets that live on top of blockchain protocols. Unlike traditional digital assets like Bitcoin or Ethereum, NFTs are unique and can’t be interchanged. This allows content creators to assign value to their products or brands in a digital format.
However, not all of the best NFT stocks are exclusively involved in this growing industry. Instead, they’re companies that specialize in various business lines that also have NFTs as a small segment of what they do. That’s to say, you’ll be investing in companies that are global leaders in their respective fields, but with a special emphasis on blockchain technology and digital assets.
When it comes to investing in non-fungible tokens (NFTs), it’s important to strike a balance between exposure and risk.
On one hand, buying an NFT from the open marketplace can be very risky, as there is no telling what will happen to the value of your investment over time. On the other hand, investing in stocks that are related to the NFT space can give you exposure to the NFT market without being overexposed.
So, which is the better option? Ultimately, it depends on your goals and risk tolerance. If you’re willing to take on more risk for the potential of higher rewards, then buying an NFT may be a good option for you. However, if you want to play it safe, then investing in NFT-related stocks may be a better choice.
What Are NFTs Used For?
NFTs are digital assets that can represent a wide range of real-world objects, from art and music to in-game items and videos. Unlike traditional cryptocurrencies, NFTs are bought and sold online using cryptocurrency. Each NFT is encoded with smart contracts built into the blockchain.
Digital Content
NFTs are best known for their application in digital goods and content — where they have the power to achieve significant gains in creator revenue. On content management and social media platforms, creators can leverage the market value of their work with NFTs to validate claims and ensure fairness in royalty payments. With NFTs, creators can own their digital assets throughout the process: from content creation to publication, marketing, and even consumer sales.
Gaming
NFTs have the potential to revolutionize the gaming industry by allowing players to own items — a concept that is transforming gamers’ loyalty to their games. With NFTs, players can own their items and have complete control over how they use them.
Investment and Collateral
NFTs and DeFi can both be used to explore the idea of using NFTs as collateral. DeFi applications let you borrow money by using collateral, and NFTs can be used similarly. By working together, NFTs and DeFi can create new opportunities for borrowers and lenders.
Domain Names
NFTs are a great way to make your domain more memorable and valuable. By using a name based on length and relevance, you can make it much easier for people to remember your IP address.
Why Invest in NFTs?
Many people invest in NFTs for different reasons. Some buy into the concept of being able to trade digital assets without having to go through centralized exchanges. Others want to be part of a nascent technology that has no precedent and are willing to take on extra risk for the potential reward. Still, others see blockchain technology as an investment opportunity — if it works, their investment will go up; if it doesn’t, at least they learned something from the experience.
Below are the top 5 new NFT projects in the NFT market for 2022.
- Yubo – 2022’s Favorite NFT Project
- Crypto Baristas – NFTs for Coffee Lovers
- Doodles – Vote on the Future of Your NFT Community
- Invisible Friends – Best Animated NFT
- Mutant Ape Yacht Club – A Novel Approach to a Popular NFT Collection
Should You Invest In NFT Stocks
For many investors buying NFTs, whether non-fungible tokens or NFT stocks, provide a unique opportunity to gain solid returns on a volatile market. In high demand and short supply, NFTs provide the best chances of a return on investment. Since NFTs are new technology, many investors believe that they can get in on the ground floor of the latest trend — allowing them to stand back as more people invest and the price skyrockets.
Top NFT Stocks
If NFTs and NFT stocks are the gold rush, then why bother buying the shovel when you can invest in the companies selling them? Although many real-world use cases for blockchain technology are still pending, there is no shortage of blockchain-based companies. The number of available NFT stocks on the market today is a testament to this fast-growing sector.
Dolphin Entertainment (DLPN)
Dolphin Entertainment is the leading developer of digital content, namely premium video and entertainment marketing. With a focus on the NFT market, Dolphin’s subsidiaries include 42West — an indie studio that creates and produces NFT content. The Door and Shore — a leading publisher of branded entertainment. Viewpoint Creative — a platform for distributing NFT content across global markets. FTX.US — an NFT marketplace for brands and developers to connect.
Cloudflare (NET)
Cloudflare is without a doubt the most dynamic company on this year’s list of best NFT stocks. It has become one of the most popular names in its industry, and it’s constantly innovating to ensure that its customers get a superior experience. Cloudflare’s network is regularly expanding, so there’s no doubt that this tech firm is well on its way to becoming a market leader.
Cloudflare wants to ensure that the crypto community can benefit from its new blockchain asset management features. To build on this, Cloudflare will be exploring ways to integrate non-fungible tokens (NFTs) into its platform. This means users of the network can register, track and transfer these unique digital items — potentially helping to spur mainstream adoption of crypto by making it easier for average site visitors to understand and use.
Takung Art Co. Ltd. (TKAT)
Takung Art Co. Ltd. is an excellent choice for anyone looking to invest in NFTs stocks. The company is based in Hong Kong and operates several internet platforms that are used by artists, art investors, and art dealers in China. In March, the stock price of the company rose by 900% due to the excitement surrounding NFTs on social media. Takung Art is one of the best stocks to invest in, alongside Twitter, Cloudflare, and Mattel.
ZK International Group (ZKIN)
ZK International Group, a steel manufacturing company based in China, has announced that its research and development section, xSigma Corporation, has completed smart contract development for the launch of an NFT marketplace. This move comes as the company looks to capitalize on the growing popularity of NFTs.
With a market revenue of 81 million dollars and over $86 million in revenue last year, ZK International Group is well-positioned to take advantage of this burgeoning market. Founded in 2015, the company employs a team of more than 350 people. With its cutting-edge research and development capabilities, ZK International Group is poised to become a major player in the NFT space.
Fiverr (FVRR)
If you’re looking to get involved in the world of NFTs, there’s no better place to start than Fiverr. On this freelancer marketplace, you can find someone to help you create NFTs, no matter your budget. With so many categories to choose from, you’re sure to find the perfect fit for your needs. And best of all, Fiverr is constantly adding new categories, so you can always find someone to help you with your latest project.
Fiverr has a massive opportunity in the NFT space. Businesses are scrambling to launch new NFTs in this NFT craze, and Fiverr is right at the center of it — allowing them to quickly and simply create collections of unique digital assets. This is not only beneficial for business customers but also opens up a lot of newer opportunities for Fiverr itself.
DraftKings (DKNG)
DraftKings is transcending sports collectibles. The marketplace platform it has implemented has use cases beyond sports memorabilia, and its stable of NFTs offers a unique market opportunity. With the impending launch of its in-house minting process, this may only be the beginning for DraftKings as they seek to define its place in the secondary markets.
eBay (EBAY)
To stay competitive with Amazon, eBay has suddenly announced its intention to host NFT sales. The company’s lackluster performance in recent years suggests that it may finally have the right idea — after all, the NFT industry is currently red-hot! The announcement was a bit of a shocker — most people had expected eBay to adopt blockchain technology in some way, but not like this.
Coinbase (COIN)
Coinbase is a popular cryptocurrency exchange that lets you trade Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and other cryptocurrencies in one place. Although they are not currently involved with non-fungible tokens (NFTs), they announced plans to start supporting them sometime in 2022. When the time comes, Coinbase will have an immense advantage over the competition — roughly ten times more users than the current top NFT exchange.
Coinbase has a double-edged sword. On one side, it’s already the go-to app for cryptocurrency buying and selling — cryptocurrencies aren’t mainstream yet, but Coinbase is. This gives it a huge advantage when going after new customers that want to buy NFTs, but aren’t necessarily crypto enthusiasts. On the other hand, this means that Coinbase has to fight tooth and nail to stay ahead of newcomers like Robinhood and Square in the race for crypto supremacy.
GameStop (GME)
GameStop is one of the top contenders in the blockchain-powered retail market. The video game retailer just made a long-awaited announcement about its plans. It said that it will start to use NFT as a reward for customers who preorder games and merchandise. It also unveiled that it will create an NFT marketplace for trades and sales using NFT. GameStop consumers will soon be able to buy, sell, and trade their favorite digital goods.
Shopify (SHOP)
Shopify has decided to get in on the NFT action. The eCommerce company has a beta program that allows merchants to sell NFTs directly from their Shopify stores. This could be a game-changer for Shopify merchants who want to get in on the NFT craze.
With its partnerships with multiple minting apps, minting and selling NFTs will be easier with Shopify.
As far as companies that are building NFT marketplaces, with more than 1.75 million merchants using Shopify’s platform, the company has a massive audience that it can tap into for its new NFT marketplace.
Funko (FNKO)
Funko is a company that designs and sells pop culture collectibles. These unique items are perfect for fans of all ages and make great gifts or collectibles. Funko has been in the NFT game for a while now, and their experience shows in the quality of their products. Compared to other NFT stocks to buy, Funko is probably the least recognized- but that’s because they sell mainly to kids. Their small collectibles feature Disney characters, superheroes, and Pokémon, making them the perfect present for any child who loves pop culture.
Funko has had a few NFT drops so far, and they show no signs of slowing down. With their experience in the industry and kid-friendly products, Funko is poised to become a major player in the world of NFTs.
Playboy Brand (PLBY)
Playboy has been around for over 50 years and has a massive archive of truly iconic content. Now, Playboy is one of the largest supporters of the NFT market. It’s already taken steps towards making its archives accessible via NFTs — it’s released limited editions featuring original artwork from some of its most famous photo shoots.
One of Playboy’s first NFT drops is known as Rabbitars, they offer significant benefits to the user. In particular, they can be used to gain entry into Playboy-sponsored events like parties or even meet-ups with other users.
Disney (DIS)
Disney is often thought of as a box office juggernaut. The Walt Disney Corporation has accumulated an arsenal of blockbuster films and franchises that, when combined with the right business model, could be resold to consumers multiple times over. Similar to its current strategy, Disney will likely treat NFTs like collector’s items, selling tradable codes for limited-edition goods.
AMC (AMC)
AMC is a US movie theatre chain that introduced NFTs in July 2018 — shortly before the much-awaited Spider-Man: No Way Home premiere. Thanks to the NFTs, movie fans could buy digital goods that let them take part in augmented reality experiences, and this contributed to a noticeable rise in traffic to AMC’s website.
Twitter (TWTR)
Twitter is hoping to harness the value of non-fungible tokens with its blockchain project. The social media platform recently announced that it would be introducing support for NFTs, with each token being tied to a specific tweet. In doing so, Twitter hopes to expand what it calls the ‘internet of value’, which aims to connect online users and give them new levels of interactivity.
How to Find the Best NFT Stocks?
If you’re looking to invest in NFT stocks, there are a few things you need to take into consideration. First, you need to assess how the stock in question plans to interact and engage with the NFT arena. Second, you’ll need to look at the stock’s investment fundamentals, such as recent share performance and whether or not there is a dividend policy in place. We explain these concepts in more detail in the sections below, so that you can make the best decision possible when investing in NFT stocks.
Type of Exposure to NFTs
Understanding the way your chosen stocks are involved in or looking to get involved with the NFT industry is crucial. This can be done by analyzing how their online stores and digital assets function, taking a look at the businesses’ social media presences and reading through customer reviews. Look for stocks that not only support NFTs but also offer them.
Coinbase is one platform that is enabling users to mint their own NFTs, as well as providing a marketplace for buying and selling NFTs. So whether you’re looking to create or trade NFTs, Coinbase is a great option to check out.
Investing in a company that’s dipping its toes into the NFT space can yield good returns on an investment — just look at the Cloudflare IPO. With a dedicated following and an established infrastructure, Cloudflare is an excellent starting point for exploring NFTs.
Balance Sheet
The nascent nature of the NFT sector can make it difficult to decide which companies are right for your portfolio. When selecting new stocks, it’s crucial to look at a company’s financial status, as well as its commitment to the area. In less established industries, it’s important to see whether or not a company has the financial means to succeed in the industry before investing in them.
NFT stocks like Mattel, on the other hand, are bogged down by corporate bureaucracy. Large well-established corporations often have trouble finding their stride with NFT projects. Mattel has less than $750 million in free cash flow – a 4% decrease from last year – and has already sold its stake in an NFT called Mindflex. As such, it will inevitably have fewer resources to devote to its NFT division.
Share Price Performance
When you invest in an NFT stock, your goal is to make money. Ultimately, the value of your chosen NFT stocks should increase over time as the company uses its revenue to maintain and grow itself.
While past performance doesn’t guarantee future earnings, it’s worth taking a look at the trading history of an NFT stock to learn how its share price has stabilized in the past.
Dividends
Stock dividends can be a great way to make money from your investment. If you’re looking to build income in the long term, then stock dividends are your best bet. Whether it’s a quarterly or annual payment, a well-established dividend gives an investor instant access to income regularly.
Risks When Buying NFT Stocks
Before you invest in NFT stocks, you should consider the risks associated:
Value is Subjective
The value of NFTs is relative to the customer base of any given brand. When we see a significant spike in price or sales volume, it’s important to look at the reasons behind it: is an NFT climbing in value because of genuine interest in the product, or are people simply chasing a quick buck?
NFT stock value can be incredibly volatile. While the Bored Ape Yacht Club NFTs have sold for more than $1 million, it’s impossible to know whether this will last.
No Pureplay NFT Stocks
While companies that have already invested in NFTs like Overstock ( OSTK) will likely be able to access the industry. There is no regulated exchange designed specifically for NFTs, which means that you will not get enough exposure to the industry by investing in crypto-equities alone. That said, more and more well-known companies are announcing plans to engage with the NFT scene.
Conclusion
Thanks to the popularity of collectibles, NFTs are projected to reach $24 billion in value by 2022. According to a recent report by Nasdaq, NFTs are a great long-term investment option — however, investors should understand the risks associated with hype. While an overall trend is projected to be upward, be careful when picking your NFT portfolio. Some projects may face issues similar to that of cryptocurrency.
There’s no shortage of NFT stock markets to choose from when you want to make your trades. But before you get started, it’s important to do your research. You want to know if it’s transparent and secure, and supports the items you have in mind.
Past performance is the best predictor of future results, and stock trends can indicate how well a company will perform in the future. Checking companies’ historical performance is the most dependable way to determine whether or not they’re investments that are worth the risk. Focus on metrics like market capitalization, number of transactions, and volume of shares traded.
This list of NFT stocks will help you get started, but there are many out there that have huge potential. After you start to understand the industry better, try your hand at some new options.
