Non-Fungible Tokens or NFTs are all the rage these days. The pandemic has certainly affected everything we can imagine – including NFT stocks. With notable companies and celebrities joining the race to enter this side of the crypto world and own lucrative NFTs. It is important to know how you should be investing your money when it comes to NFT stocks. For this, you need to know the different NFT stocks available to invest in and possibly find the ones that can provide the best ROI.
In my entrepreneurial journey of 10 years, I’ve studied stocks and have gotten a keen understanding of what red flags to look out for when choosing the best stocks. NFT stocks are no different (apart from volatility).
In this article, I’ll discuss NFTs and list down my 7+ picks for NFT stocks for you to learn or choose from.
- Difference Between NFTs And NFT Stocks?
- Buying And Selling NFT Stocks As Investments
- The Risks Of Investing In NFT Stocks
- What Are The Best NFT Stocks For 2022?
- 1. Defiance Digital Revolution ETF (NFTZ) – Best For Mix Of Bonds & Stocks
- 2. Coinbase (COIN) – An NFT Stock Poised For Growth
- 3. CleanSpark (CLSK) – A Sustainable Energy NFT Stock
- 4. Silvergate Capital (SI) – An NFT Stock For Banking Space
- 5. Dolphin Entertainment Inc (DLPN) – Best Year-Over-Year Growth NFT Stock
- 6. WISeKey International Holdings (WIHN) – A Digital Assets Stock
- 7. eBay Inc (EBAY) – An NFT Stock For Art
- 8. DraftKings (DKNG) – An Instant Catch
- Wrapping Up
Difference Between NFTs And NFT Stocks?
It is important to understand the difference between owning NFTs and owning NFT stocks. While both of these are investments in NFT, the difference between these two is that NFTs are direct collectibles whereas NFT stocks are indirect investments. The Merge, a top NFT, was sold at a whopping $91.8 Million indicating the immense potential of the NFT world.
NFTs are non-fungible which means they cannot be replicated by anyone – each token is unique. NFTs are widely known for digital art, however, they are not limited to it. You can own assets or intellectual copyrights as well in the NFT space. When investing in stocks, you can invest a small chunk of your investment in companies that are performing well in NFT and have dedicated resources of their company to securing or creating NFTs.
Cryptocurrency investors (Ethereum, bitcoin, or any other digital wallet) can’t ignore non-fungible tokens, or NFTs, because of their prominence in digital art. Coca-Cola Co. (KO), Nike Inc. (ticker: NKE), and Louis Vuitton are among the big brands that are investing in NFTs and creating their own NFT collection. Although NFTs originated with art that sold for a high price at auctions, their utility extends far beyond art because they are built on “smart contract” technology.
Let’s dive a little deeper to understand NFT stocks well.
Buying And Selling NFT Stocks As Investments
Investments in NFTs follow the traditional buying low, selling high principle. The token can be bought early by market participants and then sold to investors for a profit later on if interest in it increases. The NFTs, however, should be considered pure speculation and risky investment. NFT stocks only represent companies that have investments in the NFT world – meaning, they are creating or trading NFTs.
It is important for investors to determine their appropriate level of exposure to NFTs, given that they are risky assets. The idea of diversifying your investment is true for NFT stocks as well. You should have a certain amount set in your capital budget which you can risk losing in case of a loss. If investors already have exposure to cryptocurrencies, NFT might be considered as a subset.
It is important to note that NFTs can be more than just art – they can be real-world assets such as real estate contracts or even digital forms of art such as music, tweets, video game avatars, videos, and much more. Even though NFTs are most lucrative in the form of art, in the future, real-world assets of NFTs will have much more value. For creators and collectors, NFTs present a greater opportunity and it will only continue to grow with more companies joining in the race to own the most valuable NFTs in the world.
The Risks Of Investing In NFT Stocks
Because NFTs are brand new technology, we do not have much insight into their potential. The NFT market does appear to be a bubble that could burst at any moment. There’s no way to determine whether warning signs should be heeded or dismissed without historical data. Further, an NFT or an NFT stock cannot be measured in the same way a piece of land or a tool can be measured in terms of its value. It is difficult to determine the existence of a bubble until the bubble pops or doesn’t.
Due to the novelty of blockchain technology, NFTs may have the same volatility as cryptocurrencies in terms of their value. It is common for cryptocurrencies to undergo significant changes in value because of minor and unpredictable events. As an example, Elon Musk, the co-founder and CEO of Tesla sent tweets that caused significant changes in the value of Bitcoin and Dogecoin.
It is always recommended to do your own research as well before entering or investing in the NFT stocks. Researching current trends will help you to understand whether it is the right time to invest in something as volatile as the NFT market.
What Are The Best NFT Stocks For 2022?
Investment motives differ greatly, whether it’s choosing NFT stocks or purchasing NFTs for personal use. Those interested in disrupting trends and investing in new technologies are excited to be part of it. There are others who see NFTs as having immense potential and want to invest as soon as possible.
Let’s take a look at 7+ NFT stocks you need to get your hands on in 2022.
1. Defiance Digital Revolution ETF (NFTZ) – Best For Mix Of Bonds & Stocks
Best Non-Fungible Token For Multiple Stocks
If you’re wondering what an ETF is? It stands for exchange-traded fund. The biggest difference between a normal stock and an ETF is that an ETF can contain a mixture of bonds and stocks. Further, you can trade ETFs whenever you want to – this is another big attraction for getting an ETF instead of usual single stocks.
Instead of issuing a single NFT stock, Defiance introduced multiple stocks. This means that if youinvest in NFTZ, you’ll get shares of multiple NFT stocks or tokens. It can diversify your risk and improve the chances of receiving a better and more stable revenue. The ETF offered by Defiance includes stocks of companies that are actively involved in the digital token, blockchain, and cryptocurrency ecosystem.
NFTZ is the first ETF to be issued for NFT. The diversified exposure that investors will receive will be incredible. Since all stocks under ETF are from publicly listed companies that have exposure to the metaverse – allowing for significant disruption.
Reasons To Invest In NFTZ
- NFT Based ETF: Even though ETF diversifies risk, it also provides a targeted investment opportunity to investors. It’s better to invest in stocks from companies that are leaders in blockchain technology.
- Low-cost Exposure: NFTZ is a way for you to avoid risking a huge amount of money on something you’re not sure about.
- NFT Stocks: NFTZ only provides shares of companies that are active in the digital currency and blockchain space, which means you get to take advantage of different companies’ NFT investments in the shape of high-earning stocks.
Pros And Cons Of NFTZ
|Allows for diversified shares||Doesn’t pay dividends|
|Gained a Buy rating from analysts|
Let’s take a look at the current market price of NFTZ.
NFTZ Current Stock Price
As of June 30, NFTZ stands at a $5.92 market price, according to the NYSE. The graph shows a consistent downward trend in the last 6 months. The market cap of NFTZ is not available.
2. Coinbase (COIN) – An NFT Stock Poised For Growth
Lucrative Non-Fungible Token Stock For High Earnings
Coinbase was one of the first companies to enter the cryptocurrency world. It provides a cryptocurrency trading platform with multiple digital currencies and NFTs as well (similar to Openseas NFT marketplace). The company decided to trade NFTs last year when it introduced a dedicated marketplace for NFTs.
Coinbase was established in 2012 and currently has a user-friendly cryptocurrency exchange platform that is present in more than 100 countries. In terms of partners, Coinbase has a total of 185,000 partners. With more than 73 million verified users on the platform, Coinbase is definitely a fierce competitor – hence the 2nd position on my list.
The Coinbase stock or COIN went public on April 14th, 2021 by offering a whopping 114.9 million shares. It also became the first crypto exchange company to go public in the US.
Having the NFT marketplace and trading a lot of digital art since the first NFT, COIN will only continue to grow, making it a good potential NFT stock to invest in.
Reasons To Invest In COIN
- High Earnings: COIN has been a controversial stock since the company went public. This can be attributed to the fact that the company deals in extremely high-value cryptocurrencies. But, it can also be due to the earnings the company is generating. In 2021, Coinbase generated $3.6 billion net income with an impressive net margin of 46%.
- High Risk, High Return: The stock of COIN might be volatile but it is also one of the most lucrative ones out there. The ability of Coinbase to shape the future of cryptocurrency will certainly play a part in generating higher profits for investors.
- The Right Time to Buy: The stock of Coinbase has dropped 79% in 2022 which means investors can get their hands on COIN at a reasonable price and sell later when it gains value again.You should always buy low and sell high as far as stocks are concerned.
Pros And Cons Of COIN
|Can provide higher revenue||Carries high-risk|
|Buy rating from analysts||Highly unstable stock|
|Access to more than 30 cryptocurrencies|
|Has a profitable past performance|
Let’s take a look at the current market price of COIN.
COIN Current Stock Price
As of June 30, COIN stands at $47.90 in stock price according to NASDAQ. The graph shows a downward trend in the last 6 months. More recently, (May onwards), the stock has been somewhat stable. Further, the market cap of COIN is $12.315B.
3. CleanSpark (CLSK) – A Sustainable Energy NFT Stock
Clean Energy Non-Fungible Token
CleanSpark secures third place on this list as a sustainable bitcoin mining and energy technology company. Since all NFTs are traded with the help of cryptocurrency, CleanSpark gains an advantage in the sustainable crypto mining business. The idea behind CleanSpark is to use renewable energy and microgrids for efficient energy consumption to mine different types of cryptocurrencies.
For crypto mining, CleanSpark is working to improve the ethical standard by supporting practices that help solve energy challenges such as ESG practices (environmental, social, and governance).
Reasons To Invest In CLSK
- Price Target Upside/Downside: Currently, at $4, CLSK is estimated to go as high as $12.67 which is a favorable price target upside – indicating once again that you should be buying CLSK.
- Renewable Energy: As far as NFTs are concerned, CleanSpark will always be a relevant company to invest in since it helps with energy-efficient crypto mining.
Pros And Cons Of CLSK
|Fairly valued in the stock market||Highly volatile stock|
|Expected increase in the stock price||Poor current stock performance|
|Heavily invested in the NFT marketplace.|
|Great for clean energy supporters (investors)|
Let’s take a look at the current market price of CLSK.
CLSK Current Stock Price
As of June 30, CLSK stands at a $4.00 stock price according to NASDAQ. The 6-month trend shows that the stock reached its peak in terms of the stock price in the month of April however, currently it is standing at the lowest stock price (in the last 6 months). Further, the market cap of CLSK is $161.857M.
4. Silvergate Capital (SI) – An NFT Stock For Banking Space
An NFT Stock With Constant Market Share Growth
An American bank founded in San Diego, CA, Silvergate Capital is a relatively small firm. It is now entirely focused on cryptocurrency after being one of the first banks in the cryptocurrency space. Silvergate’s clients include 93 crypto exchanges, many of which move their dollars using its bank accounts.
A number of stablecoins are also supported by Silvergate’s Crypto Exchange Network, or SEN, which is used by individuals and institutions to carry out crypto exchanges. There is a growing market share of crypto exchanges with Silvergate, according to analyst reports.
Reasons To Invest In SI
- Crypto-supported Bank: Being the first bank to recognize the value of digital currencies, SI stock is a worthy investment in terms of NFT space.
- Recommended Stock: Most analysts have suggested SI stock as a Strong Buy.
Pros And Cons Of SI
|Fairly valued at the stock exchange||Low earning per share (EPS)|
|Recommended as a Strong Buy||Poor recent performance|
|Positive projected growth|
Let’s take a look at the current market price of SI.
SI Current Stock Price
As of June 30, SI stands at a $55.19 stock price according to NYSE. The 6-month trend shows that April 2022 was the best month for SI stock since then it has continued to drop in price, now reaching the lowest stock price (in the last 6 months). SI market cap is at a whopping $1.693B.
5. Dolphin Entertainment Inc (DLPN) – Best Year-Over-Year Growth NFT Stock
A Non-Fungle Token – Analyst’s Top Choice
Diverse entertainment companies, including digital content creators, are part of Dolphin Entertainment, a conglomerate of entertainment marketing businesses. To facilitate NFT marketing and minting for leading sports, gaming, charity, and entertainment brands, it recently announced a partnership with the owners of crypto exchange firm FTX.US.
Reasons To Invest In DLPN
- Consensus Rating: DLPN received a rating of Buy indicating analysts’ confidence in the stock’s future performance.
- Price Target Upside: Standing at a stock price of $3.17, DLPN’s stock is estimated to increase up to $12.00, indicating a positive outlook for the stock.
Pros And Cons Of DLPN
|Large-scale NFT marketplace||Highly volatile|
|Recommended as a Buy||High short share of float|
|Positive projected growth|
Let’s take a look at the current market price of DLPN.
DLPN Current Stock Price
As of June 30, SI stands at $3.17 in stock price according to NASDAQ. The 6-month trend shows that January 2022 was the best month for DLPN stock with the highest stock price. However, the stock price is at its lowest, indicating a good time to buy this stock. DLPN’s market cap is at $28.759M.
6. WISeKey International Holdings (WIHN) – A Digital Assets Stock
An NFT Stock For Profitable Investment
With WISeKey, NFT trading can be authenticated and verified through an integrated security platform. A product from the company is WISe.art, a marketplace for digital assets based on NFT. A wide range of NFTs, including those connected to historic artifacts, artworks, and luxury items, are minted by WiSeKey and auctioned through its website.
WISeKey introduced minting digital identity NFTs with its WISeID technology. By creating digital personas, authenticating ownership, verifying identity, and creating, signing, and verifying claims within the emerging virtual metaverse, we can make use of the new technology to validate ownership and identity.
Reasons To Invest In WIHN
- Forecast & Signal: WIHN got a Buy signal last week with a 4% increase in the price.
- Future Opportunities: Blockchain has completely removed the need for third-party involvement which means you can exchange NFTs in exchange for money without dealing with intermediaries. This opens up a lot of opportunities for the future.
Pros And Cons Of WIHN
|Has positive company profitability||No dividends|
|Recommended as a Buy||Risky stock at the moment|
|Average analyst stock price above current stock price|
Let’s take a look at the current market price of WIHN.
WIHN Current Stock Price
As of June 30, WIHN’s stock price is $0.25 stock price according to NYSE. The 6-month trend shows a downward trend for WIHN. WIHN’s market cap is at $34.061M.
7. eBay Inc (EBAY) – An NFT Stock For Art
Highly Suitable For Art Investors
NFT services are now available on eBay, the famous eCommerce site. There have only been fiat currency transactions allowed on eBay so far. It might become more robust if eBay accepts cryptocurrency assets for use in the future with NFTs.
It is possible that the NFT market will become even more chaotic in the future, and eBay may play a role in stabilizing the market in that case. This can lead to eBay being viewed by many investors as an attractive NFT stock.
Reasons To Invest In EBAY
- Consensus Rating: EBAY stock has constantly gotten the rating of Buy which means it is a stock that analysts are optimistic about.
- Positive Future Outlook: eBay has performed well so far after introducing the NFT marketplace, analysts have optimistic remarks on EBAY stock.
Pros And Cons Of EBAY
|A highly profitable stock||Has tough eCommerce competition|
|Has a diverse set of businesses||Prone to data breaches|
|Has a Buy analysts rating|
Let’s take a look at the current stock price of EBAY.
EBAY Current Stock Price
As of June 30, EBAY stands at $41.67 in stock price according to NASDAQ. The 6-month trend shows the stock price has dropped a lot however, it has slightly recovered in the month of June. EBAY’s market cap is at a staggering $23.888B.
8. DraftKings (DKNG) – An Instant Catch
A Non-Fungible Token For Sports
DraftKings – a famous sports betting platform has entered the NFT marketplace as well. Using this marketplace, you can buy, hold or sell NFTs related to sports and athletes.
Reasons To Invest In DKNG
- Consensus Rating: DKNG has received a Strong Buy rating from analysts indicating a positive sign for the stock.
- DKNG Price Forecast: DKNG is expected to reach a stock price of $36.00, you can make a fortune if you buy the stock now and sell it later.
Pros And Cons Of DKNG
|High company valuation||Highly volatile stock|
|Has a Strong Buy analysts rating||High-risk investment|
|Profitable company investments|
Let’s see how the DKNG stock is performing.
DKNG Current Stock Price
As of June 30, DKNG stands at $11.67 in stock price according to NASDAQ. The stock has recently recovered a bit after experiencing a sharp downward trend. DKNG’s market cap is at $5.104B.
There are mixed opinions about NFT’s future growth. From what I’ve seen and experienced, NFTs will continue to grow and become even more lucrative. With more data, better predictions on NFT can be made, however, for now, it is an investment that could make you rich overnight or completely destroy your finances in the same way.
As a general rule, you should test the waters before committing full-time to invest in the NFT market. To avoid huge losses, take a small risk. If you’re looking to diversify your risk, NFTZ is the best stock for you. If your choice is a stock for future growth opportunity, I recommend investing in COIN stock. Lastly, if an NFT stock with a great cause is your target, pick CLSK to invest in a clean energy NFT stock.
Need more expert opinion on NFT or cryptocurrencies? Check out our reviews.