Investing in emerging markets is something that many may find challenging to do as there are risks; there’s no guarantee. However, those investments are the ones that can be the most beneficial.
Their most significant advantage is that they have the potential for the highest growth. One of the most prominent examples of this is Zoom, the platform we all know and have used over the past few years. They only went public in April 2019, with its IPO price of $52 ($36 US) and by September 2020, that had risen to $863 ($588 US) and in turn made the company more valuable than oil and gas company, Exxon Mobil. But, while it’s easy in hindsight, spotting the next big thing is a real skill.
Over the past year, one of the areas of interest has been the NFT, or non-fungible token. Not only have they been something that has attracted investment, but they’ve also broken through into popular culture. As a result, some stocks have risen and look likely to make an even more significant impact in the next few years. In their simplest form, NFTs are verifiable unique digital assets distributed and traded via the same technology as cryptocurrencies, and they’ve proven to be very lucrative. Sports clubs have benefited via the sale of branded fan tokens to their supporters, allowing them to own a merchandise line never seen before. Artists have sold their works for tens of millions, and even digital ownership of a photo raised $500,000. Their popularity is being driven by a collector’s desire to get something authentic; however, while they have been the most common places we’ve seen NFTs, these are the companies who might be considering investing in this year as they expand into the world of the NFT.
Funko
The physical collectables on offer from the company, often known as ‘pops’ are already a huge draw for collectors, and now the company are looking to expand their offerings in the NFT space. They have already acquired a sizeable stake in TokenWave, which have developed a mobile app and website for showcasing and tracking NFTs. The company have launched their first NFTs and are selling well.
GameStop
The retailer known for selling video games and tech collectables recently announced they are planning to create a platform of their own, solely for the sale of NFTs. After recent news from video game developers advertising the sales of non-fungible tokens to gamers, it could be argued that GameStop, one of the most trusted retailers in the industry, is best placed to handle those transactions. As a result of the announcement, shares in Gamestop rose over 7%, and that was before the new NFT marketplace is open for business.
Coinbase
Already established as one of the leading marketplaces in cryptocurrency, Coinbase is well respected. The founder-led business has an outstanding reputation and has a balance sheet already above $6b. However, what is key here is that they have a venture arm that invests in cutting-edge technology and products, including NFTs. The moves they are making in this area could indicate that they’re looking at installing a marketplace for the NFT, which would add another area of growth for the company and potential stock rises.
Like any investment, things are never certain; however, what we have seen over the past couple of years is a massive growth in interest in NFTs. Their values have been steadily rising, so it’s easy to understand why so many companies are looking at getting involved too.
Regards,
James H. Dinan
Contributor
(Disclaimer: This content is a contributed post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)