You can think of the NFT craze as something akin to Beanie Babies from the 1990’s – a simple fad on the level of a dumbed down version of the tulip bubble from the 17th century. But you would be shortsighted in that evaluation because you would be simplifying the shift to its most limited and unimportant manifestation instead of grasping the long term big-picture trend now getting underway.
The big point in the advent of the NFT is the concept of digital real estate as true “property” that can participate in a capitalist economic system.
Imagine the value creation if it works. The size of physical real estate market is dwarfed by the digital real estate market provided the latter can be realized as a true proprietary marketplace – or if it isn’t yet, it certainly will be at some point because there are no limits; the latter is not constrained by the size of the physical world as the former is.
Naturally, URLs are ownable. But Content, as a conceptual category in the digital world, is not. And ‘content qua content’ is the basis for the internet’s true vibrant reality, which occurs on social media and in video clips and digital pictures that go viral and change culture. Such items are not easily tied down by URL copyrights. And there’s no means of enforcement for making and distributing copies.
Only the NFT process can resolve this dilemma.
The capacity to hold deed to such creations and to market and sell them opens up a new world of digital economic life. At this point, given the rise of NFTs tied to grainy pixelated images of whales and rocks, that revolution appears to be at hand and in its early stages, at least on a conceptual level.
For the best expression of this perspective, please consult Jesse Walden’s (Variant Fund) eloquent exploration of the coming NFT boom in his piece “NFTs Make the Internet Ownable”.
Now, as NFT stocks find new interest and society begins to come to terms with the scale of this revolutionary shift, we take a look at a handful of stocks in the space with interesting recent catalysts.
Takung Art Co Ltd (NYSEAMERICAN:TKAT) is a standard play for traders in the NFT space. The company is a mainstay given its exposure to works for collectors of digital art.
The company operates international online trading platform that provides state-of-the-art and convenient services for various types of artworks. The firm provides a way for art collectors and investors to acquire shared ownership in Asian and other fine art – including paintings, calligraphies, jewellery and precious gems.
Takung Art Co Ltd (NYSEAMERICAN:TKAT) recently announced the closing of its previously announced private placement of 571,429 shares of Common Stock at a purchase price of $8.75 per share. Gross proceeds were approximately $5 million, before deducting placement agent fees and other offering expenses. The Company currently intends to use the net proceeds from this offering for general corporate purposes and working capital.
According to the release, the Common Stock described above have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission or an applicable exemption from such registration requirements. The shares of Common Stock were offered only to accredited investors. Pursuant to a registration rights agreement with the investor signed concurrently with the SPA, the Company has agreed to file an initial registration statement with the SEC covering the resale of the shares of Common Stock issued to the investor no later than 17 days after the date of the closing and to use best efforts to have the registration statement declared effective as promptly as practical thereafter, and in any event no later than 75 days after the closing in the event of a “full review” by the SEC.
And the stock has been acting well over recent weeks, up powerfully in that time despite the pullback seen over recent days. Shares of the stock have powered higher over the past month, rallying roughly 81% in that time on strong overall action.
Takung Art Co Ltd (NYSEAMERICAN:TKAT) managed to rope in revenues totaling $1.1M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -31.9%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($24.3M against $29.6M, respectively).
SFLMAVEN (OTC US:SFLM) is a premium provider of high-end luxury goods to discerning clientele globally. The company has driven over $140 million in sales and likely now six figures in positive reviews since its inception, famous for its Thursday Night Auction events on its top-rated eBay store. This is a small-cap auctioneer of rare high-end luxury goods.
That’s why the company’s most recent announcement, from this morning – hot off the presses – should probably come as no surprise.
SFLMAVEN (OTC US:SFLM) announced this morning the launch of its new “Collectibles Marketplace strategy”, which will consist of acquisitions and a new operational focus on the thriving collectibles market, including non-fungible tokens (NFTs), baseball cards, coins, comic books, handbags, sneakers, and other collectible memorabilia.
According to the company’s release, this strategy will be in addition to its current thriving luxury goods auction strategy, which is on pace to generate over $10 million in sales once again this year.
“We have expertise in the auction sales process, which is critical to success in the collectibles market,” noted SFLMaven CEO, Joseph Ladin. “We see this as a natural extension of the knowledge we have accumulated over 19 years as a leader in online auction sales of highly valuable goods with unique properties. There is room in the marketplace for the emergence of something akin to the Sotheby’s of the collectibles space. That is the vision we are pursuing, and we look forward to providing further details and concrete updates over the very near term.”
SFLMAVEN (OTC US:SFLM) also notes in its release that, according to TechCrunch, the estimated size of the global collectibles market is $370 billion. Folks, we introduce you today to the next player to step onto the NFT playing field: SFLM. This seems like a real shift given its longstanding track record as an auction play on high-end rare items. In today’s market, the NFT is the emerging example of that genre, and SFLM is a real company with a strong history of big sales. Despite its designation as an OTC stock, we wouldn’t overlook this one as a name likely to become a new core NFT play in the stock market.
Wisekey International Holding AG – ADR (NASDAQ:WKEY) reportedly engages in the provision of digital security technology in the field of cybersecurity, digital identification, and authentication of people and objects. The company says it has developed a unique NFT Platform following a multichain strategy through a partnership with Polygon, CasperLabs, and Ocean Protocol. WISe.Art is a fully fledged marketplace with its own digital currency, has the ability to include curators and multipliers, while-labeling options and special NFT designs.
The NFT design of the WISe.Art platform ensures that besides an authenticated and signed version of the actual digital asset, it creates an irreversible link to the physical object, provides proof of ownership, provenance and a set of contracts describing future use and monetization streams. The NFT platform is secured by WISeKey’s various security technologies enabling the authentication of physical objects as well as digital assets, in a safe end-to-end process.
Wisekey International Holding AG – ADR (NASDAQ:WKEY) recently announced the nomination of Andreas Kindt to its Advisory Committee. Members of WISeKey’s Advisory Committee originate from a wide variety of sectors that are of critical importance to WISeKey’s growth strategy, including Cybersecurity, IoT, Blockchain, and information technology.
“I am very happy to welcome Andreas to our Advisory Board as we are moving ahead with the full launch of our WISeArt platfrom. He brings an unparalleled expertise acquired through his track record of successes in companies revolving around WIseKey’s core value propositions with strong focus on Cybersecurity,” said Carlos Moreira, WISeKey’s Founder and CEO.
While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer over the short time horizon, which has been wrapped up in macro market activity. However, shares of the stock have clearly been outperforming the market over the past month, rallying over 30% in that time.
Wisekey International Holding AG – ADR (NASDAQ:WKEY) managed to rope in revenues totaling $9M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -27.9%, as compared to year-ago data in comparable terms.
Other key players in the NFT space that may deserve attention include Plby Group Inc (NASDAQ:PLBY), Funko Inc (NASDAQ:FNKO), Oriental Culture Holding Ltd (NASDAQ:OCG), and Liquid Media Group Ltd (NASDAQ:YVR).
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