News: NFT-related stocks draw attention as digital asset buzz grows.
(Reuters) – The popularity of non-fungible tokens, a type of digital asset authenticated through blockchain, is spreading to stocks as investors focus on stocks from online art trading platforms and companies make NFT-related announcements, resulting in oversized moves in their stocks leads stocks.
Shares of Sino-Global Shipping America Ltd., a shipping and logistics company, last rose 12% after rising 33% after the company announced an exchange for NFTs with public e-commerce chain CyberMiles to start. The stock, which recently traded at $ 9.66, rose 85% in the last eight sessions.
Stocks in pipe maker ZK International Group, which recently rose 6%, rose as much as 20% before posting gains Thursday after announcing that subsidiary xSigma Corporation would develop an NFT marketplace that will allow users to use NFTs buy and sell your own custom assets in a few clicks.
Investors also appeared to be betting that art companies would benefit from NFT as U.S. stocks quickly changed hands on art trading platforms Takung Art Oriental Culture Holding on Thursday.
Takung stock – most recently up 8% after rising 79% at the start of the session – was up more than 700% in the last five sessions. Oriental Culture stocks, which were up as much as 60% on Thursday before falling 3%, were up 200% in the last five sessions.
The popularity of NFTs has exploded during the pandemic as enthusiasts and investors scramble to spend huge sums of money on items that only exist online.
Last month, musician and artist Grimes, who is with Elon Musk, Tesla’s chief executive officer, sold some animations she made on a website called Nifty Gateway for more than $ 6 million.
Earlier this month, Christie’s auctioned a $ 70 million digital-only artwork to a crypto-asset investor operating under the pseudonym “Metakovan”.
Some investors said the run on NFTs reflected a 2017 run on the shares of companies making blockchain or cryptocurrency announcements, including Long Island Iced Tea Corp, a beverage maker whose shares rose after the company announced it would join Long Blockchain Corp. rename.
Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh, said interest in companies involved in digital assets has been “largely driven by people who think they have missed out on Bitcoin”.
“Buying the companies that offer NFT would be like buying companies that were involved with Bitcoin in the early days,” Forrest said.
However, the money manager was skeptical about how well NFT would fare in the long run and said, “This is the electronic version of a beanie baby – do you remember this madness?”
The trading volume in Culture was 4.4 times its 10-day moving average, while Takung was 3.7 times its 10-day moving average.
Reporting by Sinéad Carew; Editing by Ira Iosebashvili and Dan Grebler
Original Source © Reuters