If you want to invest in the NFT market, you don’t have to buy individual NFTs. Many listed companies are trying to establish themselves in the young growth market. Here are five NFT stocks with potential. NFTs have been around since 2014, but it wasn’t until 2021 that they made headlines on a large scale for the first time. With many NFT collaborations, large companies around the world have long since become aware of the hype and are developing new business models. Interested investors can therefore buy more and more NFT shares instead of investing directly in individual highly volatile NFTs. Which companies can convince with their concept and prevail against established players? COMPUTER BILD names five promising NFT stocks in 2022.
Definition: What are NFT shares?
NFT stands for Non-Fungible Token. An NFT is a kind of receipt for digital goods such as videos or images. An NFT shows that at a certain point in time you have purchased a certain piece of content – for example, a work of art. Until now, it has been difficult to prove ownership of digital goods. After all, most content can be copied and distributed more or less easily as desired. With NFTs, it becomes possible to decide the original from the copies and establish a market for digital art. However, the market is very volatile, and buying an NFT as an investment is tantamount to gambling.
NFT shares are shares of companies whose business model is directly or indirectly related to NFTs. This allows investors to invest in the NFT market without becoming directly dependent on individual digital goods. Read how to buy and sell NFT here.
NFT Shares: DraftKings
Whether baseball, Pokémon, or Magic: The Gathering – trading cards have fascinated people for generations. The US fantasy sports provider DraftKings transfers this principle to the digital world with its new NFT marketplace. Users can buy, sell and exchange digital collectibles from their favorite athletes on this platform.
The idea is not new, but DraftKings can come up with well-known licenses and cooperations. Recently, for example, the company announced that players’ NFTs will appear exclusively on the DraftKings marketplace for the 2022/2023 NFL season. Thus, the company may also be able to reach mainstream sports fans who otherwise have no contact with NFTs.
With a user base of 1.5 million paying customers and a turnover of almost 1 billion euros, the company is on a solid basis and could benefit greatly from the NFT hype with its NFT platform. However, DraftKings does not yet write any profits.
Buy NFT shares: Ebay
Around the “Web 2.0” veteran Ebay has become quiet in recent years. In mid-2021, the company announced that it would also allow users to sell and auction NFTs in the future. With a user base of 187 million customers, the company has a stable position in the mass market and could thus carry NFTs further into the general public.
NFT Shares: Coinbase
Coinbase has become one of the most important players in the crypto market with its cryptocurrency exchange. By mid-2022, the company plans to launch its own NFT marketplace, where users can trade Ethereum-based NFTs.
Coinbase wants to score with its marketplace above all through greater accessibility and more user-friendliness. Through its partnership with credit card provider Mastercard, for example, Coinbase could enable the direct purchase of NFTs by credit card. It had enormous progress because so far interested parties first have to register with an online broker, verify, buy Ethereum and then buy the favorite NFT on an NFT marketplace. The Coinbase NFT marketplace can massively simplify this process and bring it closer to the modern e-commerce experience. The launch is eagerly awaited by many users: More than two million people have already registered.
NFT share: Dolphin Entertainment
More accessibility for the mass market is also the goal of US media company Dolphin Entertainment, which partnered with crypto exchange FTX in 2021 to develop an NFT marketplace for sports and entertainment brands. While FTX provides the technological know-how, Dolphin brings its extensive contacts in the entertainment industry to the partnership. Through this connection, Dolphin Entertainment aims to build a marketplace that provides users with an up-to-date buying experience. Since the NFT marketplace has not yet been launched, a successful launch could have a positive impact on the company’s share price.
Cloudflare Share: NFT Tool for Content Creators
Cloud specialist Cloudflare is taking a different approach to positioning itself in the growing NFT market. In spring 2021, the expert for security in the cloud will publish an NFT tool. The tool allows producers to bring videos into the form of NFTs, giving them better control over the marketing of their content. In the future, Cloudflare plans to expand the tool for other digital content as well. And the market is huge: Basically, every digital asset can be turned into an NFT.
Conclusion: Which NFT shares to buy?
The problem of monetizing digital content is as old as the Internet itself. For the first time, NFTs provide a solution to securely and efficiently market videos, images, artwork, and other digital assets.
It is questionable which companies can assert themselves in the confusing market. The NFT marketplace OpenSea exploded in 2021 – but is also struggling with security vulnerabilities and fraud. Established companies like Ebay have a lot of experience in e-commerce and the infrastructure to design a user-friendly and secure NFT marketplace. At the same time, companies such as Dolphin Entertainment or DraftKings, with their contacts in the entertainment industry, have strong partners at their side who are able to attract many new users.
Compared to a direct investment in NFTs, however, all NFT shares have a clear advantage: None of the companies presented is completely dependent on the NFT business. Buying NFT stocks such as Coinbase, Cloudfare, Ebay or DraftKings is above all an investment in the future of the company – not exclusively in the volatile NFT market.
Costs, Options & Co.: The Depot Comparison
If you want to buy an ETF or shares, you need a securities account. A comparison of the most important providers can be found in the table below, and further detailed information in the depot comparison.