The NFT space is one of the most interesting and controversial market ideas to emerge over the past decade. The concept amounts to the establishment of the means to provide effective real estate value to digital property, which is a revolutionary idea if it takes off.
And it already has taken off to some extent.
NFTs were blazing hot earlier this year after a JPEG file by the digital artist Beeple sold for $69 million at Christie’s in March. Then we saw a bit of break. But that momentum started back up in August and picked up further in September. According to CNN, monthly sales on OpenSea, the top platform for buying and selling NFTs, reached $3.4 billion in August, easily an all-time high, according to data from Dune Analytics. September became the second-best month ever in just four days, with $485 million in sales out of the gates.
Now, we have major participation from deep pockets starting to stoke the NFT marketplace with Ripple’s announcement that it is launching a $250 million fund focused on exploring new use cases on non-fungible tokens (NFTs) on the XRP Ledger (XRPL).
According to the Ripple release, the potential for the XRPL as a platform for NFT trading was highlighted by Japan-based financial services firm SBI Holdings in its “Building a More Sustainable, Scalable, and Accessible Future for NFTs with XRPL” report in July.
The move promises to provide some extra juice for a space that seems to need only further visibility to make big waves for speculators and investors. With that in mind, we take a look at some of the hottest and most interesting players in the equities market with strong NFT exposure.
Wisekey International Holding AG – ADR (NASDAQ:WKEY) has reportedly developed a unique NFT Platform following a multichain strategy through a partnership with Polygon, CasperLabs, and Ocean Protocol. WISe.Art is a fully fledged marketplace with its own digital currency, has the ability to include curators and multipliers, while-labeling options and special NFT designs.
The NFT design of the WISe.Art platform ensures that besides an authenticated and signed version of the actual digital asset, it creates an irreversible link to the physical object, provides proof of ownership, provenance and a set of contracts describing future use and monetization streams. The NFT platform is secured by WISeKey’s various security technologies enabling the authentication of physical objects as well as digital assets, in a safe end-to-end process.
Wisekey International Holding AG – ADR (NASDAQ:WKEY) recently announced that its cybersecurity technology secures its fully-fledged marketplace with its own digital currency that has the ability to include curators and multipliers, white-labeling options, and special NFT designs.
The WISe.Art platform allows trading of NFTs while ensuring the necessary KYC processes to avoid unwanted activity on the marketplace. WISeID is a trusted identity service that enables access to the web and mobile applications with strong authentication techniques. WISeID supports online KYC onboarding, OTP and digital certificate login, and an innovative “hands-free” secure login based on QR-Codes which users can read using the WISeID suite of mobile applications without even having to type any passwords.
Even in light of this news, WKEY hasn’t really done much of anything over the past week, with shares logging no net movement over that period.
Wisekey International Holding AG – ADR (NASDAQ:WKEY) managed to rope in revenues totaling $9M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -27.5%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($35.7M against $21M).
SFLMAVEN (OTC US:SFLM) is one of the newest players in the NFT space. The company emerged onto the scene after years of successfully operating a high-end luxury goods auction house, which could translate perfectly into the NFT marketplace.
The company’s standing business interest as a high-end luxury goods auctioneer has pulled in over $140 million on the top line over the past two decades through its top-rated eBay Inc (NASDAQ:EBAY) store, which recently reached the rare level of over 100k positive reviews. That’s a great platform to begin establishing a presence as a leading NFT house.
SFLMAVEN (OTC US:SFLM) just announced this week that it has signed acclaimed artist SubtleCodes for the creation of digital artwork to further bolster the Company’s emerging NFT auction portfolio.
SubtleCodes began to explore artistic expression through graffiti as early as six years old. He later attended the world-renowned Ringling School of Art & Design to further develop his skill set. SubtleCodes has frequently toured the US painting live at large music festivals, including Electric Forest in Michigan, Hulaween in Florida, Sonic Bloom in Colorado, Wakarusa in Arkansas, Okeechobee Festival in Florida, Fractal Beach in Florida, and Elements Music Festival in Pennsylvania, to name a few of his favorites. He has also done work for Shaq Bowl.
According to the release, his work has been featured at events such as Art Basel in Miami, FL, with work showing at Moksha Art Gallery alongside other top artists who have made a name in South Florida such as Robert Venosa and Alex Grey. He has painted live in front of crowds as large as 40k people.
SFLMAVEN (OTC US:SFLM) has moved forward with SubtleCodes with the same deal the company gave to its first talented NFT artist, which was announced earlier this month. That means a small upfront cash payment followed by a 10% royalty on NFT auction sales of derived work, paid out to the artist quarterly. Now that the company has two strong artists in its stable, one might start to make the case that this is a new approach – a new system “taking off” on some level. It’s certainly worth keeping on the radar.
Dave & Buster’s Entertainment Inc (NASDAQ:PLAY) is one of the newest entrants into the NFT space following its press last month.
The company traditionally engages in the ownership and operation of entertainment and dining venues under the name Dave & Buster’s. It offers a full menu of entrées and appetizers, a selection of alcoholic and non-alcoholic beverages, and an assortment of entertainment attractions centered around playing games and watching live sports and other televised events.
Dave & Buster’s Entertainment Inc (NASDAQ:PLAY) added to that profile recently when it announced the launch of its NFT Digital Collectibles Prize program to provide a unique first-of-its-kind experience to NFT collectors. Starting on September 27th, Dave & Buster’s NFT Digital Collectible coins and cards will be available in Dave & Buster’s locations nationwide and can be claimed as prizes in exchange for tickets won.
“We’re excited to unlock this new opportunity for today’s modern-day collectible at Dave & Buster’s,” said Pete Thornfield, VP Brand Marketing at Dave & Buster’s. “Our innovative approach to the NFT Digital Collectible prize program provides fun through a gamified and immersive experience. For those looking to collect unique, new NFTs, Dave & Buster’s combines the fun of gaming and the fun of collecting, all while unlocking that everyday winning feeling for our guests.”
Even in light of this news, PLAY has had a rough past week of trading action, with shares sinking something like -7% in that time. That said, chart support is nearby, and we may be in the process of constructing a nice setup for some movement back the other way.
Dave & Buster’s Entertainment Inc (NASDAQ:PLAY) managed to rope in revenues totaling $377.6M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 642.9%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($107.8M against $308.9M, respectively).
Other key players in the NFT space that may deserve attention include Takung Art Co Ltd (NYSEAMERICAN:TKAT), Plby Group Inc (NASDAQ:PLBY), Funko Inc (NASDAQ:FNKO), Oriental Culture Holding Ltd (NASDAQ:OCG), ZK International Group Co Ltd (NASDAQ:ZKIN), and Liquid Media Group Ltd (NASDAQ:YVR).
