3 top NFT penny stocks to watch right now
In particular, NFT stocks and NFT penny stocks have grown in popularity over the past 12 months. And there are some good reasons for that. For one, the surge of interest in bitcoin and cryptocurrency overall over the past year and a half has seen more and more investors looking for related stocks. Additionally, NFTs have reached new heights during this time as more companies get involved.
Although the technology has been around for quite some time, it is only in the past year that companies and investors have found new uses for it. And now NFTs and corresponding penny stocks have become commonplace. Notably, it is difficult to find a pure NFT penny stock.
Rather, most companies involved in NFTs tend to do the bulk of their business either in blockchain-related niches or entirely outside of industries. However, given the huge and arguably untapped potential that NFTs offer, many companies have decided to get involved.
What are NFTs?
To break it down simply, NFTs, or non-fungible tokens, are a way of giving ownership of a digital file. NFTs use the blockchain to securely transfer the rights to an artwork, file, video, image or something similar to an individual. In the last six months, we’ve seen NFTs sell for millions of dollars, and it doesn’t look like this is slowing down anytime soon.
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Recently, major art auction houses such as Sotheby’s and Christie’s have been conducting large NFT sales. This is a huge step, both symbolically and financially, which has seen NFTs become a mainstay in the collectible world. With all of that in mind, let’s take a look at three NFT stocks you need to know about in 2021. Will they be on your list of penny stocks to buy or avoid before the end of the year?
3 NFT Penny Stocks to Watch Now
- Atari SA (OTC: PONGF)
- Hall of Fame Resort & Entertainment Co. (NASDAQ:HOFV)
- ATA Creativity Global (NASDAQ:AACG)
Atari SA (OTC: PONGF)
Over the past year, shares of the famous gaming company Atari have skyrocketed by around 50%. If you’ve played video games at any time in the last thirty years, you’ve probably heard of Atari. It owns popular titles like Pong, Asteroids, Missile Command and more. Because of this, it has been a leader in the gaming industry for quite some time. In the past year, however, Atari has returned to the scene in new and modern ways.
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Now the company is partnering with other big tech companies like Sony, Microsoft, and Nintendo, offering licensed and derivative products. However, it has recently entered the NFT market as well. And late last week there was an exciting announcement that it had sold 20 exclusive Atari NFTs and raised more than $410,000 in just one week.
“This successful auction process marks the beginning of Atari’s partnership with ZED RUN, which will include an Atari-themed 3D racetrack that will launch concurrently with the NFT auctions, which will host future Atari events. Due to the strong interest in this first auction, Atari is exploring further ideas for Atari-style NFTs within ZED RUN.”
Atari CEO Wade Rosen
In light of this latest move by Atari, it might be worth giving PONGF stock a first look or a second.
Hall of Fame Resort & Entertainment Co. (NASDAQ:HOFV)
Today, the shares of the HOFV share show a certain bullish momentum from noon. Year-to-date, HOFV stock is up about 77% despite some less than stellar trading patterns over the past few weeks. In some context, Hall of Fame Resort & Entertainment is a company focused on Hall of Fame related sports and events. While it may seem incongruous to have it on a list of NFT stocks at first glance, the company has entered the NFT market in recent months. While one side of the business is sports-centric, the other side is media-based. This is where the NFT game comes into play.
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Back in April, the company announced a partnership with Dolphin Entertainment Inc. (NASDAQ: DLPN) to develop a series of NFTs. These NFTs focused on the H2H Legends, which are ten athletes who have previously won the Heisman Trophy. CEO Michael Crawford stated at the time: “As an organization operating at the intersection of sport and entertainment, it is our responsibility to leverage access to unique content to create unique fan engagement opportunities for all of our businesses.”
This was a big deal when it was announced, and while no major updates have come out since then, it seems like it could still be a work in progress. Given its role as a diversified NFT and entertainment company, is HOFV stock worth adding to your list?
ATA Creativity Global (NASDAQ:AACG)
AACG stock is another fast-moving NFT company, up more than 130% over the past six months. While trading volume for AACG may be small, the company has some interesting prospects in the works.
It’s worth noting that ATA Creativity is by no means an NFT-only stock. Rather, it focuses on education and education-related technology. However, there are a few reasons why some investors consider it part of the auxiliary industry. Given that NFTs are closely related to the arts, we often see similar companies do the same when pure NFT stocks rise.
“As the recovery from the global pandemic continues to unfold in the coming months, ACG stands ready to provide students with the best possible opportunities for their artistic and creative pursuits, be it a virtual workshop with a respected partner institution abroad or a local art – Themed tour with a small group of students…we are proactively developing additional programs and ways we can serve and nurture students with a passion for the arts.”
AACG CEO Kevin Ma
So there is nothing specific that AACG adds to the NFT market, but there can often be a correlative rise as NFT stocks rise. Although correlation does not imply causation, this is something that needs to be considered.
Is it worth buying NFT penny stocks?
Although NFT technology is relatively new, there are many opportunities that investors can take advantage of right now. These include NFT penny stocks and companies that may have limited activity in the industry.
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And with dozens to choose from, investors have plenty of options for their watchlists. With that in mind, do you think it’s worth buying NFT penny stocks or not?
