The non-fungible token (NFT) craze is continuing to stay strong. These new types of cryptocurrency tokens, which represent ownership of digital art pieces, collectibles, and other unique assets, have taken the financial world by storm. In response, investors are trying to find any way to play the NFT market right now. While trying to find which particular NFTs to buy on a third-party marketplace might be a little tricky, investing in a stock that’s broadly exposed to the NFT market seems like a much better bet.
That’s exactly what happened with Dolphin Entertainment (NASDAQ: DLPN) on Tuesday. Shares skyrocketed after the company announced it would be moving to cater to this market via a new NFT division. Dolphin was a relatively unknown company, prior to this announcement, that is, focusing mainly on providing marketing and publicity services to other companies and projects.
“NFTs, whether as digital art in their own right, or as collectibles, or simply as promotional items, have entered the realm of pop culture and entertainment, which is where Dolphin lives,” said Dolphin CEO Bill O’Dowd. “We expect several upcoming projects and partnerships that will combine our creative and marketing expertise to bring exciting offerings to the NFT marketplace.”
While NFTs are revolutionizing the way we think about digital ownership, most of the recent NFT demand has come from speculators looking to make a quick buck. Billionaires like Elon Musk and Jack Dorsey have made and sold their own simple NFTs for millions of dollars. As such, we’re already seeing more skeptical investors call out NFTs as being just like the Tulip craze of 17th Netherlands. Is this a bubble that could pop and send the crypto market plunging? That’s definitely possible, but there’s still a lot of money to be made in the short-term, however.
Shares of Dolphin more than tripled in response to the news, surging over 236% on Tuesday. Even in pre-market trading, shares are continuing to skyrocket, with prices gaining another 77.8% on top of Tuesday’s previous gains. In total, we were looking at a 300%-ish gain that could continue to move upwards throughout the rest of the week.
Another NFT-associated stock, Takung Art (NYSE: TKAT), is also up significantly over the past week. Shares have surged more than 350% after rumors began to circulated that it might start accepting digital NFT art onto its online art marketplace. What’s notable is that Takung’s jump wasn’t just a one-day phenomenon but was spread out over several days.
In the same way, it seems likely that Dolphin Entertainment will continue to see gains over the rest of the week. If you feel like you missed out with Takung Art last week, now’s the chance to grab some more gains with Dolphin Entertainment. Just be mindful of the possibility of a potential reversal, even if the chance is low.
Dolphin Entertainment Company Profile
Dolphin Entertainment Inc is in the business of production and distribution of digital entertainment content. It produces digital series and also launched feature film division dedicated to the production of motion pictures for family audiences. The firm’s digital series includes Aim High, Cybergeddon and Southbeach and films include Max Steel and Believe. – Warrior Trading News
