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

That seems to have acted as a catalyst for several NFT stocks and higher-priced names alike. But should you subscribe to this trend long-term or is it just another fleeting fad? As they say, follow the money and see where it takes you. Who's getting into NFTs right now? Everyone from Billionaires like Mark Cuban to high-profile athletes like Rob Gronkowski and even YouTube celebrities like Logan Paul. All of them either beating the drum saying NFTs are great or trying to hype up enough people to actually buy these "digital pieces of artwork."

Should You Buy NFTs, NFT Stocks or Nothing At All?

Just like investing in penny stocks, for instance, the ultimate decision is up to you to decide. Right now, the list of NFT stocks to buy continues growing. So does the speculative nature around companies that seemingly have little involvement in the industry. But, just like Takung, traders will find some breadcrumbs to pick up and use them to formulate a thesis, no matter how many holes can be poked in it. With Takung, for instance, the thought was that since the company sells physical art online, they might be able to sell digital art as well. This soon sparked a sympathy sentiment trend reminiscent of the early days of the Reddit rally in January. While stocks didn't quite explode as much, the mark was made in the stock market with a new "class" of stock emerging and a new niche to look into.

On the flip side of the spec-hype trend is an actual industry similar to that of trading artwork. famed digital artist Beeple sold his NFT for $69 million. Others have sold their own NFTs on platforms like Rarible and OpenSea for a few hundred dollars. So there's a whole market within the market. This begs the question, "Should you invest and if so, what should you buy?"

When it comes to NFTs, NFT stocks, and the like, we're still talking about a very speculative and early-stage marketplace. That goes for equities and actual digital commodities. If you've got the stomach for volatility, the chance to lose your whole investment, or an opportunity to essentially hit the lottery, NFTs may be something to look into. However, it's still very risky and not for everyone.

List Of NFT Penny Stocks & More