Penny Stocks Are Climbing On NFT Hype
If I asked you what NFT penny stocks were in January, you might look at me dumbfounded. The newest trend in digital media, NFTs or non-fungible tokens, has taken the “tulip” hype to a completely new level. You can read my article on what NFTs are and some of the earliest coverage on NFT stocks in my article here. Needless to say, the excitement has fueled a blinding rally in countless technology stocks. Some of these have no relation to the NFT niche, but traders presume some exposure could be in play based on speculation.
Some former penny stocks were behind this latest hype. Most of these companies were online platforms for selling art. In several cases, this art was in physical form. So I supposed the presumption is that if these companies sell online anyway, the transition to offer digital pieces wouldn’t be difficult.
Then you’ve got the non-art side of things. This has seen companies with catalogs of media in the crosshairs of certain traders. For instance, Hall of Fame Resorts (NASDAQ: HOFV) is one company we’ve discussed frequently. Initially, the focus was on HOFV stock as one of the reopening stocks to watch. But speculation spawned interest in Hall of Fame’s access to sports footage and how it could fold into the NFT trend.
While the company itself said it is getting familiar with the industry, it didn’t come out and say this was definitely something it would bring into its business plan. Needless to say, traders continue to chomp at the bit for the latest NFT stock to hit watch lists. I will also say that thinking “outside the box” is a trend that has added more fuel to the fire.
Are You Looking For NFT Penny Stocks To Buy Right Now?
Whether you’re looking on Reddit, Twitter, Facebook, chat rooms, etc., NFT stocks are the hot topic of the week right now. If you’re exploring this as an option, fully understand that there is so much speculation involved right now. This leads to higher volatility and, in turn, big swings in price. Right now, there are still plenty of NFT penny stocks to watch and a few you may have not yet thought of quite yet.
NFT Penny Stocks To Watch Right Now
Kicking off this list of potential NFT penny stocks to watch is a pioneer of modern gaming, Atari. The company has grown into an interactive entertainment company that has influenced generations of gamers throughout history. Its popular titles include Asteroids, Centipede, Missle Command, and, of course, Pong.
The recent focus has been on the company’s new console launch of Atari VCS. The PC/console hybrid system offers both gaming and entertainment in one place. The company has expanded into the tokenization ecosystem wit its Atari Token for things like in-game purchases. It has also integrated with Robot Cache to support buying and selling of digital games using Atari Token in the Robot Cache storefront.
Where’s the NFT connection? Aside from the tokenization of digital games, Atari has quietly gotten involved in other tokenization methods. Atari teamed up with Bondly for Gaming NFTs. According to reports, the NFTs will form the “backbone” of Atari’s Metaverse. Furthermore, earlier this month, Atari also partnered with RTFKT Studio on a limited-edition fashion series. They will create a limited NFT Atari-themed fashion series.
“The first collaboration is a one-of-a-kind Atari Sneaker that, in addition to being an incredible work of art and valuable collectible, will also be available for use across multiplayer blockchain games, including Decentraland, The Sandbox, and the upcoming Atari Metaverse.”Atari
Shares of Liquid Media stock have also caught onto the coat-tails of the NFT trend. They’ve got their origins with Atari, believe it or not. In this case, I think it’s an instance of indirect exposure triggering undertones of bullish sentiment. However, at the heart of the company’s model, it’s a digital entertainment business.
However, earlier this month, the company inked a deal with Atari. The distribution agreement with Atari was for Liquid’s SlipStream video-on-demand distribution platform, to be available for download on Atari’s VCS™ PC/console hybrid.
“Atari committed early on to make its new VCS a highly versatile home entertainment platform, and we believe Liquid will find a great audience within the VCS ecosystem. It will help us drive forward transformative innovation,” said Ronald W. Thomson, CEO of Liquid. “Teaming up with Atari also supports our recalibrated business strategy and offers wider exposure for Liquid’s Slipstream service, known as the Netflix for adventure outdoor films, and our Reelhouse video community.”
Considering Atari’s tokenized ecosystem and focus on the NFT niche, traders have shown some appeal to Liquid’s potential involvement. Whether or not there ends up being a direct NFT event is to be seen. For now, however, YVR stock has gotten wrapped up in this recent stock market trend.
One of the penny stocks that aren’t necessarily an NFT stock but has a bit of exposure to the tokenization arena is Ideanomics. The company itself has taken up more of an investment approach to its business model. It has companies involved with everything from electric vehicles to real estate and many things in between. Where do non-fungible tokens come into the mix?
Ideanomics’ portfolio investment, Liquefy, is a platform that turns rights of ownership into smart contracts. Essentially, it allows someone to convert illiquid assets into digital tokens via a tokenization platform. In July 2019, Ideanomics and NEO Global Development led a $2.6M Pre-A funding round. Liquefy says that its primary focus is real estate with future ambitions to “enter the exotic asset space, such as sports teams and racing horses.”
Some have speculated on its potential as an “NFT stock.” However, the company doesn’t sell assets like digital art, memes, or sports clips. But it is worth noting that through Liquefy, Ideanomics has some exposure to the tokenization of assets. Does this mean it could be one of the NFT penny stocks to watch, or is this a bit too far off the beaten path for this new niche?
NFT Penny Stocks Fueled By Hype
If you’re looking for NFT penny stocks to buy right now, keep in mind that this niche is heavily influenced by hype and sentiment. Since only a few companies have actually come out with related news or even a firm model, the future is still uncertain for many of these hyped-up names.
Furthermore, consider the massive jumps that’ve already been made. If you’re looking at some of these companies right now, ask yourself, “Are these levels sustainable, or should I prepare for a pullback?” Not to mention that so many of these companies were thinly traded, to begin with.
[Read More On NFT Stocks] 2 Penny Stocks Soar Over 100% On NFT Speculation
Like many have seen, liquidity could bring interest from institutions, and with that, potential funding deals. While fresh capital is great for public companies, it can put a damper on things in the market. The general process of raising funds usually entails some discount to the market. If you’ve been trading penny stocks long enough, you’re probably familiar with this scenario. So plenty of risks exist right now. In any event, momentum has built behind this trend, which could make it something to watch this week.