If you’ve been following the news, you might have noticed that a particular trend in the cryptocurrency market has been taking the financial world by storm. Non-fungible tokens, or NFTs, are a way to store and trade unique digital assets, like crypto art, collectibles, etc. Billionaires like Elon Musk and Jake Dorsey have helped the NFT market explode due to their own tweets on the subject. Now, mainstream investors are looking for potential NFT stocks to invest in. To be clear, at this point, there aren’t any NFT stocks available on the market. However, that hasn’t stopped traders from speculating on which companies they think will become NFT plays.
Takung Art (NYSE: TKAT) is a Chinese-based online art trading platform that’s mainly remained unnoticed throughout its lifetime on the U.S. stock markets. However, traders are wondering whether Takung might open itself up to selling crypto art as well since its platform is already selling art via an online marketplace. If so, Takung could end up seeing a surge in business.
Therefore, traders have decided to jump on the stock merely due to this possibility, with shares of Takung more than tripling on Wednesday. Other online art marketplaces that are listed publicly have seen their shares skyrocket as well.
The NFT phenomenon has continued to grow over the past few months. Just recently, a record-breaking art sale was held at the famous Christie’s Auction House. The main feature was an NFT crypto art collection that sold for an astonishing $69.4 million, the third-highest price tag paid for a still-living artist’s work.
Since then, investors have been looking for any way to try and play this NFT market. However, there really isn’t any pure-play NFT stock available right now. That’s why traders have jumped on potential companies like Takung Art, which could pivot into the NFT business rather easily.
Shares of Takung skyrocketed 277.7% on Wednesday, the single best day in the company’s history. Prior to this, shares haven’t moved at all over the past three years; that’s how ignored Takung Art has been by the investment community up until this point. Additionally, Takung still is a small-cap stock, with a $250 million market cap. Prior to this jump, Takung was closer to a micro-cap, another reason why it was so ignored up until this point.
In all likelihood, Takung’s stock should see a big correction soon, likely on Thursday. Shares are already down 12.8% in pre-market trading.
Takung Art Company Profile
Takung Art Co Ltd is a United States-based company that operates an online electronic platform for offering and trading artwork. The company through its platform allows artists/art dealers/owners to access a much bigger art trading market where they can engage with a wide range of investors. Its platform also invests in high-end and artwork accessible to ordinary people without financial resources. The company’s trading platforms comprise the sale of calligraphies and paintings, jewelry, and precious stones. It generates revenue in the form of services in connection with the offering and trading of artwork on our system, primarily consisting of listing fees, trading commissions, and management fees. The company conducts its business primarily in Hong Kong and China. – Warrior Trading News
