27/09/2021 3 NFT Stocks With High Growth Potential

The non-fungible token market is booming and these companies could play a role in its future.

Travis Hoium

Key Points

  • DraftKings is trying to get into the sports figure NFT market.
  • Cloudflare is providing NFT infrastructure.
  • EBay is now allowing NFT sales on its enormous online marketplace.

The market for non-fungible tokens -- digital assets like art, video clips, or music that ownership identified in the blockchain -- came to life in 2021, despite some ups and downs. Three months ago, monthly sales volume of NFTs was checking in at $59.2 million. Today, that number has reached $2.6 billion, according to trading site NonFungible.


As dollars and cryptocurrencies such asEthereumflow into NFTs, companies are trying to figure out how to capitalize. Sports leagues and players are dropping (or creating)NFTs and artists and performers are getting in on the action. So, how can investors play in the market without betting on single NFTs themselves?DraftKings(NASDAQ:DKNG),Cloudflare(NYSE:NET), andeBay(NASDAQ:EBAY)are great places to start.

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A circular icon with the words "NFT non-fungible token" on a circuit.

Image source: Getty Images.

DraftKings

DraftKingshaslaunched an NFT marketplace, primarily for athlete-related NFTs. The company has become a top name in sports gambling, so transitioning to NFTs could be a natural fit.

Sports cards have long been a way to buy sports-related collectibles and DraftKings seems to be viewing NFTs in the same way. Current NFT drops look a lot like sports cards with a little more exclusivity and greater ease of trading. And if young collectors are getting into buying NFTs rather than cards, this could be a great move for DraftKings because it's selling NFTs from athletes like Tom Brady, Wayne Gretzky, and more.

DraftKings' system will run on Ethereum Layer 2, which is a scaling solution to handle the increased transition load on the Ethereum network,and by the end of the year the company expects its NFTs to be transferrable to external digital wallets. If sports NFTs take off, DraftKings could be a winner in the market.

Cloudflare

Cloudflare, a cloud services provider that secures and enhances the performance of the internet,is an infrastructure play in NFTs. The company's Cloudflare Stream allows video creators to tie content to NFTs, saying it allows "creators to embed their NFT claim to ownership into their video on Cloudflare Stream." The idea is to limit access to a video to those who hold an NFT.

What I like about Cloudflare is that it's looking for ways to make NFTs a useful digital asset. There are myriad potential uses for NFTs beyond just selling JPEGs, so if companies start writing contracts with NFTs or tie physical asset ownership to NFTs this could be a big market. Videos could be a foot in the door to more assets and NFT structures.

Cloudflare is a great way to invest in NFTs' growing infrastructure needs. Given the company's history of innovation on the edge of the cloud, this could be a big winner long-term.

EBay

One of the original internet marketplaces, eBay, is also taking its crack at NFTs. The company allows the sale of some NFTs on its traditional online platform but that may just be the start if it opens up to cryptocurrencies and other digital assets.

EBay is taking a bit of a different approach to NFTs from some of its rivals. The company is still focused on dollar sales right now, rather than relyng on a cryptocurrency, which is used in most NFT transactions on OpenSea. Accepting standard currency could make an eBay NFT more accessible to the masses than a cryptocurrency-focused NFT platform.

A legacy company like eBay may not be an ideal place for disruptive NFT sales off the bat, but as we see the cryptocurrency market go through wild volatility there may be a a need for some kind of stabilizing force. EBay could be a natural buyer, and a highly liquid one, especially if the crypto and NFT market goes through a big panic.

NFTs are here to stay

I don't think the ride for investors will be easy, but NFTs probably are here to stay. Digital goods have been growing in popularity for years and I think that will only continue as the use of digital platforms for communication and productivity increases. Not every company will win in a world of NFTs, but DraftKings, Cloudflare, and eBay have a good shot at building a niche in the NFT market.

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Arts

https://www.fool.com/investing/2021/09/25/3-nft-stocks-with-high-growth-potential/

Interesting NFTs
POPZ PUNKS #15
POPZ PUNKS 15/110
Crossroad
LIMITED EDITION 1/1 | includes signed limited edition prints of all 3 states (pre-election, Trump win, Biden win) This piece is a first for Nifty, a token that will change based on the outcome of the election. If anything is constant about the times we now live in, it's uncertainty. This uncertainty is perfectly encapsulated in this piece of artwork as the person buying the piece will not know the final artwork. The artwork will be one state at auction before the election, and after the results of the election are known, will forever change to reflect a Trump or Biden win. PLEASE FUCKING NOTE: If trump wins, this token will change to that video of sexy boi king trump stomping through hell FOREVER. I don’t want you coming back to me bitching that you spent $2M* on this and now it’s a video of orangeman going HAM and it’s keeping u up at night popping mad boners. should have voted bruh. *and stfu that this isn’t gonna be worth a fuckton more when I hit 30 years of everydays and have a permanent collection in the MOMA. smh.
#62732
By OthersideDeployer
Alex in Wonderland
A figure, Alex, stands mostly naked in the midst of a physical and psychological maelstrom. He is clad only in nostalgic 80’s era socks, on a tenuous island between active waters and a variety of shark denizens. Sharks on the right side of the image are all beached, including a shark with a quartz crystal snout, an orange shark wrapped in a life buoy, and a shark further in the distance wearing an 80’s style shirt with the number “88”. On the left side is the largest shark, wearing bright glossy red lipstick and brandishing prominent teeth with braces. She is cordoned off from the figure by a roped float divider, and within her thought bubble is a warning symbol. Behind the figure, hovering in the air, are Grey aliens emerging from the distance, out of a series of elliptical UFO shaped interdimensional membranes. The Greys take on the visual form of spermazoa ostensibly impregnating the interdimensional thresholds. As is typical, these Greys inhabit a zone just behind the unconscious topology of Alex’s dissociative mind. Though Alex’s bottom half is representative, his top half mutates into a psychological cornucopia. In a manner akin to “Auto-Erotic Sphinx”, a predecessor work, the figure has self suctioned—an act of sensual infatuation, enjoyment, and exploration. Upward exists the figure’s primary conscious eye, adorned with a revolutionary beret emblazoned with a Bitcoin badge. The figure’s summit features the nose of a fighter jet facing off against video game Bullet Bills, one of whom is marked by a communist North Korean star. A cropped section of a UFO observes the contest. Alex’s mind branches both left and right. To the left is more singular embodied consciousness, manifesting two eyes and a Ganesh trunk grasping crayons. The right branch dissociates upward diagonally, emerging into an array of eyes, faces, teeth, tail, a unicorn horn, and much more—all of which participate in expressing his unconscious being; a democracy of psychic factions representing thought impressions and associations. All illumination and darkness– fernal, infernal, high consciousness and corporeal underbelly–reside in this realm. In the distance are relatively languid, light clouds, and against the firmament hovers a colossal distant eye peering over the scene and far beyond. This painting possesses underlying genetic traits with previous works such as “Auto-Erotic Sphinx with Toys”, “Dionysus”, and “Fuku-Shiva”. The work serves also as a nod to an earlier period of art inspiration during late teens and early twenties— born out of the nakedness, vulnerability, curiosity, and wonder inherent to coming of age and all subsequent psychedelic revelation.
Tile [7, 13] - The Notch
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