E Are NFT Stocks Here To Stay?

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.


Image by A M Hasan Nasim from Pixabay

What are NFT stocks? The letters stand for "non-fungible tokens," which have grown in popularity this year. They're not Bitcoins but they do use blockchain technology and usually are bought by trading in Ethereum. A more detailed explanation of what NFTs are is as follows:

These assets can include website domain names, digital currency, and now more recently non-fungible tokens (NFTs). Easily explained, NFTs are a unit of data stored on a digital blockchain. This is proof that a digital asset is unique. These digital files can include photos, videos, audio, and almost anything that ownership can be given to digitally.

Article: Best Penny Stocks to Buy Right Now? 3 NFT Stocks to Watch in June

So we've got digital collectibles to wrap our brains around. The idea seems easy to understand. Generally speaking, that Mickey Mantle rookie card is just some ink on a piece of cardboard. The uniqueness and limited supply of it plus an autograph are what would make it valuable in the eyes of whoever is willing to pay the money. While we're just talking about "another JPEG," blockchain technology is what essentially verifies the "uniqueness" of each NFT. Similar to what we saw during the 2017/2018 boom in bitcoin, NFTs and stocks related to them have captivated the interests of traders worldwide.

An initial spark ignited this trend on a larger scale with small-cap stocks like Takung Art (TKAT) and Oriental Culture Holdings (OCG) caught a speculation-fueled move in price. That was back in March when Main Street was only just beginning to dive into this NFT trend. Now, a few months later, much older and wiser, traders are...still trading based on speculation.

Wednesday afternoon, the creator of Dogecoin tweeted out "Capped Dogecoin - Much cap, very deflation, many tokenomics. Many available..." along with some stats on the newly minted Shiba Inu-inspired NFTs

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