If you are active on platforms like FinTwit or Reddit, you have no doubt seen the buzz surrounding NFTs or Non Fungible Tokens. Part crypto collectible, part digital investment, NFTs represent the new frontier when it comes to collecting things like art, music, or even sports cards. If you have seen headlines about things like NBA Top Shots or internet artist Beeple selling his work for $66 million, you definitely know that the NFT market is hotter than even cryptocurrencies themselves. So as investors, how can we take advantage of the latest craze? Here’s two stocks that have a great opportunity to be the first movers amongst publicly traded companies.
Square ($74.48|2.32%): I have written about Square before, most recently as a stock to watch during the ongoing tech selloff. The reason stock reporters write about Square so much is that it has its hands in many of the latest technologies. Through its Cash App it allows stock trading as well as the buying, selling, and spending of cryptocurrencies like Bitcoin or Ethereum. These are on top of the standard digital payment functionality that the Cash App has been utilized for during the COVID-19 pandemic and beyond. But how do we know Square has a future in the NFT market? First, Jack Dorsey is a known admirer of cryptos and recently put his first ever tweet up for auction as an NFT. The current bid on it is $2.5 million. Second, Dorsey recently purchased Tidal to add to Square’s ecosystem, no doubt a long-term play to allow artists to release new music as NFTs to allow them to be properly compensated for their work. Square is always on the cutting edge of technology, and now is a great time to pick some shares up as it is 20% off of its recent 52-week highs.
Sino-Global (NASDAQ:SINO): This stock is definitely not as well known as Square, but recently announced that it was partnering with eCommerce company CyberMiles to create an NFT exchange market. The long-term goal is for artists and musicians to be able to digitally sell their work as NFTs, similar to what Square will do with Tidal. The exchange will be built on the CyberMiles Blockchain which is optimized for eCommerce, and is reportedly faster and more powerful than the more commonly used Ethereum Blockchain. This new exchange is set to launch in July 2021, and the stock reacted accordingly following the announcement. With a market cap of only $123 million, Sino is far from a sure thing for investors. But given the foreseeable popularity and staying power of NFTs, Sino may have a nice first mover advantage, and could be one of the leading names in the NFT industry. For investors with a healthy risk appetite, starting a position now while the stock is still in single digits, may be a worthwhile investment in the future.
Rate this article