3 Top NFT Penny Stocks to Watch Right Now
NFT stocks and NFT penny stocks, in particular, have seen heightened popularity over the last twelve months. And there are some good reasons for that. For one, the steep interest in Bitcoin and cryptocurrency as a whole over the last year and a half, has resulted in more and more investors looking for related stocks. Additionally, during that time, NFTs have risen to new heights as more companies become involved.
While the technology has been around for quite some time, companies and investors alike have only found new uses for it in the past year or so. And now, NFTs and corresponding penny stocks have become commonplace. What’s worth noting is that it’s hard to find a pure-play NFT penny stock.
Rather, most companies involved in NFTs tend to conduct the majority of their business in either blockchain-related niches or completely outside industries. However, given the vast 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 to provide ownership over a digital file. NFT’s utilize the blockchain to securely give the rights of an art piece, file, video, image, or anything similar, to one person. In the past six months, we’ve seen NFTs sell for millions of dollars and it doesn’t look like this is slowing down anytime soon.
Recently, major art auction houses such as Sotheby’s and Christie’s, have held large NFT sales. This is a big move both symbolically and financially, and one that has resulted in NFTs becoming a mainstay in the world of collectibles. So, considering all of this, let’s take a look at three NFT penny stocks you need to know about in 2021.
3 NFT Penny Stocks to Watch Right Now
Atari SA (OTC: PONGF)
In the past year, shares of the famous gaming company Atari, have shot up by around 50%. If you’ve played video games anytime in the past thirty years, you’ve likely heard of Atari. It owns popular titles such as Pong, Asteroids, Missile Command, and more. And because of this, it has remained a leader in the gaming industry for quite some time. However, in the past year, Atari has come back on the scene in a new and modern way.
Now, the company works with other major technology businesses such as Sony, Microsoft, and Nintendo, offering licensing and derivative products. However, it has also recently gotten into the NFT market. And late last week, it made an exciting announcement that it had sold 20 exclusive Atari NFTs, raising more than $410,000 in only one week.
“This successful auction process marks the beginning of the partnership between Atari and ZED RUN, which includes a 3D Atari-themed racetrack launched at the same time as the NFT auctions where Atari events will be held in the future. As a result of the strong interest in this first auction, Atari is exploring further ideas for Atari-themed NFTs inside ZED RUN.”
The CEO of Atari, Wade Rosen
Considering this latest move by Atari, it could be worth giving PONGF stock a first or second look.
Hall of Fame Resort & Entertainment Co. (NASDAQ: HOFV)
Today, shares of HOFV stock are showing some bullish momentum as of midday. YTD, HOFV stock is up by a solid 77% or so, despite some less than stellar trading patterns in the past few weeks. For some context Hall of Fame Resort & Entertainment is a company centered around sports and events relating to the Hall of Fame. While it may seem off to have it on a list of NFT stocks, the company has entered into the NFT market in the past few months. While one side of its business is sports-centered, the other side is based on media. This is where the NFT play comes in.
Back in April, the company announced a partnership with Dolphin Entertainment Inc. (NASDAQ: DLPN), to create a series of NFTs. These NFTs were centered around the H2H Legends, which are ten athletes who have previously won the Heisman Trophy. At the time, CEO Michael Crawford stated that “As an organization that operates at the intersection of sports and entertainment, it is our responsibility to leverage the access we have to unique content to build one-of-a-kind fan engagement opportunities across all of our business verticals.”
This was a big deal when it was announced, and while no major updates have come out since, it seems as though it still could be in the works. Considering 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-paced NFT company that has shot up by more than 130% in the past six months. While trading volume can be low for AACG, the company does have some interesting prospects in the works.
It’s worth noting that ATA Creativity is not by any means a pure-play NFT stock. Rather, it is focused on education and education-related tech. But, there are a few reasons that some investors consider it to be a part of the ancillary industry. Given that NFT’s are closely related to art, when pure-play NFT stocks rise, we often see similar companies do the same.
“As the recovery from the global pandemic continues to unfold in the coming months, ACG is prepared to provide students with the best possible offerings for their artistic and creative pursuits, whether that means a virtual workshop with a reputable overseas partner institution or a local art-themed tour with a small group of students…we are proactively developing additional programs and ways in which we can serve and nurture students with a passion for the arts.”
The CEO of AACG, Kevin Ma
So, there is nothing specifically that adds AACG to the NFT market, however it can often see a correlative rise when NFT stocks push up. While correlation does not imply causation, it is something to consider.
Are NFT Penny Stocks Worth Buying?
While NFT technology is relatively new, there are plenty of opportunities for investors to take advantage of right now. This includes NFT penny stocks and companies that may have limited involvement in the industry.
And with dozens to choose from, investors have many options for their watchlists. With all of this in mind, do you think that NFT penny stocks are worth buying or not?