NFT stocks are becoming popular as an affordable means of entry into the Web3 world. Ideally, while many would prefer to buy NFTs, blue-chip assets such as Bored Apes and CryptoPunks cost hundreds of thousands of dollars. The next best thing? Invest in Web3 stocks.
In this guide, we’ll tell you everything you need to know about NFT stocks—What are they? How do you buy NFT stocks? We’ll also explore the best NFT stocks currently available. So, let’s dive right in!
What are NFT stocks?
In the simplest terms, NFT stocks are shares of publicly traded Web3 companies or companies with a strong presence in the NFT space. In other words, any companies utilising NFT/Web3 technologies can issue NFT stocks. This can be anything from tech companies to NFT marketplaces, Web3 startups, and entertainment companies, among others.
Furthermore, NFT stocks function like any other company shares listed on a public stock exchange. Obviously, stock trading has been around much longer than NFTs. This makes it easier for newbies to enter the vast NFT market and get significant market exposure.
How to buy NFT stocks?
As with regular stocks, you can buy NFT stocks directly from stock exchanges like Nasdaq and New York Stock Exchange. Alternatively, if you are new to trading, retail trading apps such as Robinhood are a great starting point. They are easy to use and make investing more accessible.
Although NFT stocks are not based on blockchains, their value usually depends on the NFT market. As volatile assets, you have to be incredibly careful when making investment decisions. Always remember the golden rule—do your own research!
The top Web3 stocks to know in 2022
Now that we have covered the basics, let’s take a look at the popular Web3 stocks you should know.
One of the leading crypto exchanges in the world, Coinbase launched its NFT marketplace this year. While its first public day was a disaster, the platform went on to drop some remarkable collections, including Bill Murray’s biographical NFT collection. In addition, Coinbase has been cementing its Web3 presence through a host of partnerships. Take for instance its recent collaboration with Ethereum Naming Service (ENS) to develop unique cb.id usernames.
Founded in 2012, DraftKings is a fantasy sports and sports betting company that went public in 2019. The company has been steadily releasing curated NFT collections, including from celebrities via its NFT marketplace. Some of its popular collections include interactive UFC NFTs and PreSeason Access Collection from Autograph. What’s more, it recently roped in Steve Aoki as its brand ambassador.
Sports giant Nike has been steadily expanding its Web3 presence and was one of the first global brands to hop on the NFT bandwagon. One of its biggest moves was the acquisition of digital sneaker maker, RTKFT Studios in December 2021. Since then, the sneaker and apparel brand has released AR hoodies and even a preview of its real-life Cryptokick sneakers. As an iconic brand with a focus on NFT fashion, Nike’s stocks are worth keeping an eye on this year.
Meta (formerly Facebook), made its big metaverse move last year by rebranding itself and announcing its ambitious metaverse plans. However, this was only the beginning—its NFT integration on Facebook and Instagram went live in August this year. The move is aimed at benefitting artists and creators on the platform by giving them the means to share and promote their work. Besides, Instagram’s NFT integration has already expanded to 100 countries. All things considered, it’s safe to assume that Meta is set on growing its Web3 footprint.
In a major move, auction giant eBay acquired NFT marketplace KnownOrigin in June this year. Soon after, it integrated the marketplace into its website. In other words, investors can now buy NFTs on eBay. Certainly, as a platform that auctions collectibles, incorporating NFTs is a natural next step for the firm. For now, eBay sells NFTs only from a curated list of creators. It likely won’t be long till the platform expands its offerings.
Gaming retailer, Gamestop is another major company that has launched its NFT marketplace. Early this year, it launched a Beta wallet as well. Moreover, soon after the launch, the GameStop marketplace’s sales volume surpassed that of Coinbase! Further, it recently partnered with the crypto exchange platform FTX to offer real-life FTX gift cards at select GameStop stores. Its meme stock history aside, the gaming retailer is clearly doubling down on its NFT strategy.
NVIDIA CEO, Jensen Huang is all praises for the metaverse. According to him, “we’re right on the cusp of” the metaverse, which we will even be able to use one day to “simulate the future”. Meanwhile, NVIDIA has partnerships with four NFT marketplaces: TurboSquid, CGTrader, Sketchfab, and Twinbru. In addition, NVIDIA’s B2B Omniverse software is well-suited for 3D simulations and virtual collaboration—important aspects of the metaverse. In fact, last year, the company used a VR version of NVIDIA’s office to test virtual working.
Based in the US, Funko is world-famous for producing pop culture-themed collectibles. Last year, the company entered the NFT sector with the launch of Digital Funko Pop collectibles. Interestingly, NFT holders also get a chance to redeem a free, physical version of their digital collectible. Already, Funko has dropped NFTs of Power Rangers, Avatar Legends, Bob Ross and Star Trek, to name a few. More recently, it launched a collection featuring Game of Thrones characters.
9. Dolphin Entertainment
Dolphin Entertainment is a content development company offering marketing, publicity, and content development services. It has a host of subsidiaries including 42West, Viewpoint Creative, The Door, and Shore Fire Media. Within the Web3 space, it recently launched an NFT division called Dolphin Digital studios to help brands launch NFTs. In addition, the firm has partnered with FTX.US to develop NFT marketplaces focused on sports and entertainment. What’s more, it recently dropped Creature Chronicles: Exiled Aliens and the Olympics Winter Sports Champions NFTs. It sure looks like NFTs are going to be Dolphin’s long-term plan, making it a good option for stock traders.
The global e-commerce platform, Shopify has a range of NFT offerings. Firstly, it allowed its merchants to sell NFTs on their Shopify stores early last year. In February 2022, it launched an NFT app in partnership with GigLabs to make NFT integration easy. Early this year, Shopify also hosted a Doodles NFT giveaway! Its more recent plans include “token gated stores”—shops where users will need an NFT to enter. Essentially, these stores give customers access to exclusive merch or events. Besides, Shopify’s NFT stock prices are much lower this year compared to 2021.
Should you invest in NFT stocks?
As lucrative as they may be, investing in NFT stocks come with several risks. Firstly, you have to do your due diligence before making any investments. At the same time, it’s worth noting how you do your research. Since you are investing in Web3 stocks, it’s not enough to simply look at how well a company is performing. You must have adequate knowledge of their NFT strategies as well. For this, it’s also essential to know all about NFTs and how they work.
Secondly, you have to consider how much a stock’s value is linked to NFTs. Typically, some stocks are more closely connected to NFTs than others. Naturally, the more they are reliant on NFTs, the higher the risks—especially amid the recent market crash.
Lastly, make sure you understand the market and the associated risks well. These are simple measures you can take to avoid any rookie mistakes.