What you should know and which companies you should watch
The rise of NFTs has proven to be a boon to artists and creators worldwide. But they have also become incredibly enticing investment opportunities for those seeking quick – and sometimes substantial – returns on their investments.
But there is a problem. Unless you have hundreds of thousands of dollars to throw at a Bored Ape, Cryptopunk, Moonbird, and so on, finding good games in the margins will require a a lot of work. To really get a pulse on what’s going on in the room, you practically have to live on Twitter or Discord. Information moves quickly in the NFT space, and so does the value of a given NFT project once it starts to take off.
Fortunately, there may just be a solution for you intrepid NFT investors taking their first steps into these unfamiliar waters. Look no further than NFT stocks.
Wait, what is NFT shares?
Simply put, buying an NFT stock just means buying shares in a publicly traded company that has sunk its claws deep into Web3. This is what NFT shares are in a nutshell – ordinary shares of companies involved in the NFT market. But while investing in crypto and NFTs, which are strictly digital assets, may be a relatively new concept, investing in stocks is not.
That’s why NFT stocks are a great way for newcomers who are mostly interested in the speculative nature of crypto and NFTs to dip their toes into the vast ocean that is Web3. NFT shares essentially provide a way for any experienced investor to bet on NFTs and Web3 without needing insider knowledge to get started.
How do I buy NFT shares? And how can I invest in them?
Like all other stocks, NFT stocks do not rely on blockchain technology – but they are associated with the NFT market. Fortunately, gone are the days when you need to know a guy to start buying and trading stocks. These days, you have all-in-one apps like Robinhood to get you started. At that point, it’s just a matter of choosing which stocks to invest in – and for how much.
If it all sounds like a simple affair, it’s not. While these are useful for beginners, it goes without saying that investing carelessly is one of the worst things you can do with your hard earned money. If you really want to be careful when you get started, you don’t have to take the plunge right away. Another option is to engage in contracts for differences (CFDs).
Through this method, you will not necessarily own the shares you invest in, but you will be aware of the income it generates over time due to price changes. Apart from that, you will also be able to invest in shares at a lower price than you pay by buying shares directly. However, this method of stock investing does not come without drawbacks. All investments carry a certain degree of risk. With CFD trading, these risks include “a potential lack of liquidity, and the need to maintain an adequate margin,” according to Investopedia. We encourage you to investigate thoroughly which form of investment best suits your needs.
A short list of NFT stocks to buy
Meta
Let’s start with something obvious. Regardless of your feelings on Facebook, there’s no doubt that the company has made significant inroads over the past decade in bringing virtual reality into the mainstream. When Facebook bought Reality Labs in 2014 — the original developers of the Oculus VR headset — little did the public know that the acquisition would be the first step in a year-long quest to turn the metaverse into a mainstream reality.
However, the metaverse is far from the only Web3 concept Meta has embraced. Meta has also indicated a strong interest in integrating NFTs into Facebook and Instagram. In fact, NFTs are already on Instagram today, which should benefit artists, photographers, and other creatives who use the platform to promote goods and services. It’s also likely that NFTs will continue to evolve on the photo-sharing platform, as Instagram expanded support for NFTs in 100 new countries.
eBay
You can buy almost anything on eBay. And yes, that includes NFTs. Apart from hosting OneOf drops – like the Muhammad Ali collection – the online auction giant also has its own NFT marketplace. With eBay’s acquisition of Known Origin, it looks like one of the dot-com bubble’s best success stories is coming along for the ride as the Internet transitions into Web3.
At the center of eBay’s Web3-focused strategy is a keen understanding of itself as a platform. Since one of the most popular use cases for eBay is buying and selling collectibles, it only makes sense to expand the market into digital collectibles. “eBay is the first stop for people around the world searching for the perfect, hard-to-find or unique addition to their collection, and with this acquisition we will remain a leading site as our community increasingly adds digital collectibles,” said the executive CEO eBay Jamie Iannone in a press release.
GameStop
Remember the bizarre saga last year that saw Redditors turn GameStop stock into a certified meme stock? GameStop definitely does. But even taking that into account, the gaming retailer’s recent foray into NFTs demonstrates the company’s commitment to staying relevant well into the future – meme stock status for damned. Couple this with the declining popularity of physical games, and it’s easy to see how important GameStop’s new strategy is to securing its future as a company.
So what has GameStop done? First, it launched its own NFT marketplace and crypto wallet. Despite the middling reception of its new NFT marketplace, the company hopes to further contribute to the growing NFT ecosystem by offering gift cards to FTX – the first officially partnered NFT marketplace – at select stores.
Nike
Surprisingly, Nike was one of the first major legacy brands to board the NFT hype train. After some speculation, the sportswear titan announced in December 2021 that it would acquire RTKFT Studios – an organization best known for its tools that enable users to create unique digital sneakers and, of course, “artifacts.”
Since this acquisition, Nike has pushed to expand its reach into the metaverse. With the cultural cachet that Nike enjoys as one of the world’s leading sneaker and apparel brands, it’s safe to assume that Nike is set to become a leader in the emerging apparel-focused NFT space. And they are far from the only clothing companies that have shown an interest in Web3. Puma also recently unveiled a metaverse experience at 2022’s New York Fashion Week.
Are NFT stocks right for your portfolio?
Well, that depends on you. Basic investment advice still applies here. However, the most relevant investment advice when it comes to NFT stocks is to make sure you never invest in a business you don’t understand.
Yes, the companies we have just discussed have fairly simple business models. But what about their NFT ventures? This is the key factor to consider. These is NFT stocks, after all. So instead of viewing these as ordinary stocks, think of investing in NFT stocks as a commitment on your part to learn more about NFTs yourself. Staying on top of how these companies are doing – especially when it comes to their NFT ventures – is a great way to take your first steps into the big world of NFTs.
