- Company stocks and real estate will be among the many things that get turned into non-fungible tokens in the future, according to venture capitalist Bill Tai.
- The tech investor said that “it’s going to happen” and it’s “not even a question.”
- NFTs are “one-of-a-kind” assets in the digital world that can be bought and sold over the internet. They’re designed to show that someone has ownership of a unique virtual item, such as online pictures and videos, or even sports trading cards.
NFT stocks continue to be a hot topic among investors looking to jump into the non-fungible token trend and we’re helping with a list for 2022.
There are various companies with their fingers in the NFT space for traders to invest in. That includes those that operate marketplaces, sell NFT collections, and more.
Let’s take a look at 10 of the top players in the NFT market for investors to keep an eye on.
NFT Stocks List 2022
Social Media Platform Giving NFTs Global Exposure
First and foremost, it is important to note that social media giant Twitter does not offer an NFT marketplace of any sort. Moreover, the platform does not allow you to create or store NFTs. Twitter has, however, been indirectly used to promote some of the most successful NFT collections to date. A prime example of this is the Bored Ape Yacht Club NFT series – which consists of 10,000 unique tokens – many of which are now owned by a full range of A-list celebrities. This includes everyone from Eminem, Mark Cuban, and Snoop Dogg to Justin Bieber, Jimmy Fallon, and Steve Aoki.
Investment in RTFKT Studios Shows Appetite for NFTs.
Nike recently entered the NFT and Metaverse industries through its purchase of RTFKT Studios. For those unaware, RTFKT Studios is a leading designer of NFTs – all of which can be worn, bought, and sold in the metaverse. RTFKT Studios has already had great success with its virtual sneaker collections, with Elon Musk himself buying a pair for over $90,000. And, with Nike acquiring RTFKT Studios in its entirety, it is likely only a matter of time before the firm starts marketing its digital NFT series. When you consider just how much brand loyalty Nike enjoys, its NFT division could be very successful.
Mattel is an established toy manufacturing company that was first founded in 1945.
Moreover, the firm was first listed on the NASDAQ in 1960, which makes it one of the oldest NFT stocks that we will discuss today. On the one hand, Mattel stocks have plateaued in recent years. In fact, the share price of Mattel has barely moved since early 2017. For instance, over the prior five years of trading, Mattel stocks have grown by less than 1%. Over the prior 12 months, the shares are up just 8%. With that said, Mattel is looking to revitalize its business model by entering the NFT space. Since June 2021, Mattel has been auctioning off NFTs that are linked to its popular toy brands.
If your main focus when searching for the best NFT stocks is to invest in companies with huge upside momentum, Cloudflare is well worth a second look.
Put simply, Cloudflare is a popular tech stock that is involved in delivering content securely via the cloud. It is home to one of the largest networks in this industry and is able to offer lightning-fast execution speeds. To ensure the firm continues to innovate, Cloudflare now has the capabilities to support NFTs. The Cloudflare platform, in its current form, does not allow you to create NFTs directly. As such, you would still need to use a third party for this – such as OpenSea.
Other Noteworthy Stocks to Watch Out For:
- Takung Art (NYSEAMERICAN:TKAT) offers a collection of artwork for investors to buy and is getting into NFTs. It didn’t start out with NFTs as its creation goes back to 2009. Shares of TKAT stock are up 4.8% as of Tuesday afternoon.
- Oriental Culture Holding (NASDAQ:OCG) is up next with its online platform that lets customers to buy, sell, and trade collectibles. The company was founded in 2018. Shares of OCG stock are up 5.7%.
- ZK International (NASDAQ:ZKIN) is another Chinese company one focusing on engineering but expanding to modern tech. It was founded in 2015. ZKIN stock is up 4.5% as of this writing.
- Dolphin Entertainment (NASDAQ:DLPN) joins the NFT stocks list for 2022 with recent expansion into the market. The PR company was founded all the way back in 1995. Shares of DLPN stock are up 2.4% as of Tuesday afternoon.
- Funko (NASDAQ:FNKO) may be mainly known for its collectible figures but it also has ties to NFTs. The company’s been around longer than many realize with its founding taking place in 1998. Shares of FNKO stock are down slightly today.
- Liquid Media (NASDAQ:YVR) is another company that didn’t start with NFTs and instead focuses on intellectual properties. It was founded in 1986. Shares of YVR stock are up 2.9% this.
- CurrencyWorks (OTCMKTS:CWRK) is a company dedicated to developing and launching branded corporate digital currencies. It’s been around since 2010. Shares of SWRK stock are down 7.5% as of this writing.
- Jiayin (NASDAQ:JFIN) is an operator of an online financial marketplace. The company was founded in 2011 and operates out of China. Shares of JFIN stock are up 2.7% as of this writing.
- Plby Group (NASDAQ:PLBY) is selling NFTs from its famous photoshoots that traders can collect. That’s a major shift from its founding as a lewd magazine in 1953. Shares of PLBY stock are up 2.4% this afternoon.
- eBay (NASDAQ:EBAY) also got in on the NFT game recently by allowing the buying and selling of the tokens on its platform. The company has been around since the dawn of the internet with its founding in 1995. Shares of EBAY stock are up 2.6% as of this writing.
How to Find the Best NFT Stocks?
Choosing top NFT stocks for your portfolio is no easy feat. Not only do you need to assess how the stock in question plans to interact and engage with the NFT arena – but how its shares weigh up as a viable investment prospect.
It would also be wise to consider conventional investment fundamentals when searching for the best NFT stocks – such as its 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 give yourself the best chance possible of backing stocks with a solid vision in this space.
Type of Exposure to NFTs
The first thing to look at is how your chosen stocks are involved – or looking to get involved, with the NFT industry. At one end of the spectrum, you have platforms like Coinbase – which will enable content creators to mint their own NFTs. Coinbase will also host a marketplace that will enable buyers and sellers to trade NFTs from the comfort of home.
You then have firms like Heineken, Mcdonald’s, Mattel, and Hasbro – all of which have launched NFTs that represent products that the respective business makes. For instance, Mattel has launched a Barbie and Hot Wheels NFT series. In the case of Hasbro, the firm has minted and launched NFTs linked to its Power Rangers brand.
Another way to gain exposure to this industry is by investing in Cloudflare, which allows token holders to upload their NFT collections to the cloud. Ultimately, there are many angles that established companies can take to gain exposure to NFTs, so this is something to research thoroughly before proceeding.
Established Companies Offer NFTs Legitimacy
The 10 companies that made our list of the best NFT stocks all attract a multi-billion dollar market capitalization on the NYSE or NASDAQ exchange.
In many cases, some of the NFT stocks discussed today are highly established enterprises that have dominated their relevant industries for many decades – such as Mcdonald’s and Nike. And as such, this gives the global NFT space legitimacy.
This in itself can encourage new investors to enter the NFT scene, which ultimately, is what the industry needs to grow in the coming years.
Risks to Consider Before you Buy NFT Stocks
Before you elect to buy NFT stocks, you should also consider the risks discussed in the sections below.
The Value of NFTs is Subjective
The first risk to consider before you invest in NFT stocks is that the value of non-fungible tokens is subjective. For instance, we mentioned earlier that a number of Bored Ape Yacht Club NFTs have since sold in the open marketplace for more than $1 million.
Although this indicates that there are people willing to pay significant amounts of capital for trending NFTs, there is no knowing whether sales of this magnitude will be short-lived.
There are no Pureplay NFT Stocks
Another factor that we briefly covered earlier is that there are no pureplay NFT stocks in the market. Although this means that you can invest in NFTs without being overexposed to this niche space, the industry is likely to become very oversaturated in the coming years.