All investment/financial opinions expressed by NFTevening.com are not recommendations.
This article is educational material.
As always, do your own research before making any kind of investment.
The Best Web3 Stocks of 2022
NFT shares are becoming popular as a low-cost way to enter the Web3 world. Ideally, while many prefer to buy NFTs, blue-chip assets like Bored Apes and CryptoPunks cost hundreds of thousands of dollars. The next best thing? Invest in Web3 shares.
In this guide, we will tell you everything you need to know about NFT shares – what are they? How do you buy NFT shares? We will also explore the best NFT stocks currently available. So let’s dive right in!
What are NFT shares?
In the simplest terms, NFT shares are shares of listed companies Web3 companies or companies with a strong presence in the NFT area. In other words, all companies using NFT/Web3 technologies can issue NFT shares. This can be anything from technology companies to NFT marketplaces, Web3 startups and entertainment companies, among others.
Furthermore, NFT shares function like all other company shares listed on a public exchange. Obviously, stock trading has been around much longer than NFTs. This makes it easier for beginners to enter the huge NFT market and gain significant market exposure.
How to buy NFT shares?
As with regular stocks, you can buy NFT stocks directly from exchanges such as Nasdaq and the New York Stock Exchange. Alternatively, if you’re new to trading, retail apps like Robinhood are a great starting point. They are easy to use and make investing more accessible.
Although NFT shares are not based on blockchains, their value usually depends on the NFT market. As volatile assets, you need to be incredibly careful when making investment decisions. Always remember the golden rule – do your own research!
The best Web3 stocks to know in 2022
Now that we’ve covered the basics, let’s take a look at the popular Web3 stocks you should know.
1. Coin base
One of the leading crypto exchanges in the world, Coinbase launched its NFT marketplace this year. While the first public day was a disaster, the platform went on to drop some notable collections, including Bill Murray’s biographical NFT collection. In addition, Coinbase has cemented its Web3 presence through a number of partnerships. Take, for example, the recent collaboration with Ethereum Naming Service (ENS) to develop unique cb.id usernames.
2. DraftKings
Founded in 2012, DraftKings is a fantasy sports and sports betting company that went public in 2019. The company has consistently released curated NFT collections, including from celebrities, via its NFT Marketplace. Some of the popular collections include interactive UFC NFTs and the PreSeason Access Collection from Autograph. Also, it came in recently Steve Aoki as its brand ambassador.
3. Nike
Sports giant Nike has been steadily expanding its Web3 presence and was one of the first global brands to jump on the NFT bandwagon. One of the biggest moves was the acquisition of digital sneaker maker RTKFT Studios in December 2021. Since then, the sneaker and apparel brand has released AR hoodies and even a real-life preview. Cryptokick sneakers. As an iconic brand with a focus on NFT fashion, Nike’s stock is worth keeping an eye on this year.
4. Meta
Meta (formerly Facebook), made its big metaverse move last year by rebranding itself and announcing its ambitious metaverse plans. However, this was just the beginning – its NFT integration on Facebook and Instagram went live in August this year. The move is aimed at benefiting artists and creators on the platform by giving them the opportunity to share and promote their work. Also, Instagram’s NFT integration has already expanded to 100 countries. All things considered, it’s safe to assume that Meta is set on increasing its Web3 footprint.
5. eBay
In a big way, auction giant eBay acquired NFT marketplace KnownOrigin in June this year. Soon after, it integrated the marketplace into the website. In other words, investors can now buy NFTs on eBay. Certainly, as a platform that auctions collectibles, incorporating NFTs is a natural next step for the firm. Currently, eBay only sells NFTs from a curated list of creators. It probably won’t be long before the platform expands its offerings.
6. Gamesstop
Game retailer Gamestop is another major company that has launched its NFT marketplace. Early this year it also launched a beta wallet. Also, soon after launch, the GameStop marketplace’s sales volume surpassed that of Coinbase! Furthermore, it recently partnered with crypto exchange platform FTX to offer genuine FTX gift cards at select GameStop stores. Meme stock story aside, the gaming retailer is clearly doubling down on its NFT strategy.
7. NVIDIA
NVIDIA CEO Jensen Huang is all praise for the metaverse. According to him, “we are right on the edge of” the metaverse, which we will even be able to use one day to “simulate the future”. Meanwhile, NVIDIA has partnerships with four NFT marketplaces: TurboSquid, CGTrader, Sketchfab and Twinbru. In addition, NVIDIA’s B2B Omniverse software is well suited for 3D simulations and virtual collaboration – important aspects of the metaverse. In fact, last year the company used a VR version of NVIDIA’s office to test virtual work.
8. Funko
Funko is based in the United States and is world-renowned for producing collectibles with a pop culture theme. Last year, the company entered the NFT sector with the launch of Digital Funko Pop collectibles. Interestingly, NFT holders also get a chance to redeem a free, physical version of their digital collectible. Funko has already dropped NFTs Power Rangers, Avatar Legends, Bob Ross and Star Trek, to mention some. More recently, it launched a collection with Game of Thrones sign.
9. Dolphin entertainment
Dolphin Entertainment is a content development company that provides marketing, publicity and content development services. It has a number of subsidiaries including 42West, Viewpoint Creative, The Door and Shore Fire Media. Within the Web3 space, it recently launched an NFT division called Dolphin Digital studios to help brands launch NFTs. In addition, the firm has partnered with FTX.US to develop NFT marketplaces with a focus on sports and entertainment. Also, it recently dropped Creature Chronicles: Exiled Aliens and Olympics Winter Sports Champions NFTs. It seems that NFTs are going to be Dolphin’s long-term plan, making it a good option for stock traders.
10. Shopify
The global e-commerce platform Shopify has a number of NFT offerings. First, it allowed merchants to sell NFTs on their Shopify stores early last year. In February 2022, it launched a NFT app in partnership with GigLabs to make NFT integration easy. Early this year, Shopify also hosted one Doodles NFT giveaway! The newer plans include “token gated stores” – stores where users need an NFT to enter. Essentially, these stores give customers access to exclusive goods or events. Also, Shopify’s NFT share prices are much lower this year compared to 2021.
Should you invest in NFT shares?
As lucrative as they can be, investing in NFT stocks has several risks. First, you need to do your due diligence before making any investments. At the same time, it is worth noting how you do your research. Since you’re investing in Web3 stocks, it’s not enough to just look at how well a company is performing. You must have adequate knowledge of their NFT strategies as well. For this it is also important to know all about NFTs and how they work.
Second, you need to consider how much a stock’s value is tied to NFTs. Generally, some stocks are more closely related to NFTs than others. Naturally, the more they rely on NFTs, the higher the risk – especially amid the recent market crash.
Finally, make sure you understand the market and the associated risks well. These are simple steps you can take to avoid rookie mistakes.
