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.

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.

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
Iconic Crypto Queen
(Virtual) blondes have more fun, right? #iconic ICONIC (Adj.): of, relating to, or having the characteristics of an icon. Widely recognized and well-established.
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.
#53922
By OthersideDeployer
The Cash Tape #13/25
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Genesis
José Delbo sent me his striking pencil sketch and powerful inked work, which I then interpreted in oil on canvas. I wanted to create a very painterly piece with obvious brush marks etc, but I was also aiming for a nostalgic feel, a kind of 1980’s superhero comic book look, the kind I grew up with. My goal with this animation was to try to recreate, in part, the creative process that both artists went through with the visual information I had. I was able to showcase my painting process more accurately as I could take photographs of my progress throughout. Consecutive images could then be layered like brush strokes over José’s drawing to create the impression that this was one continuous artwork from pencil, to ink, to completed painting. The representation of the line sketch at the beginning, then pencil/ink and lastly the paint layers being applied demonstrate both artists’ struggle for the right lines, tone, form, and colour until the work is finally completed. As the oil was still wet with each photograph the glare of my studio lights can be seen in the brush strokes. Eventually, the figure emerges and as it does, our hero comes to life, looking directly at the viewer -- but is he grimacing in approval or disgust? We will never know for sure as just before he can say anything, white paint is brushed across the canvas entirely and the process begins again. Only the bat is quick enough to escape.