Non-fungible tokens (NFTs) have received a lot of publicity since 2021, when Beeple sold an NFT for $69 million. NFTs allow the existence of real-world items in the virtual world. They can be minted, bought and sold to make money as cryptocurrencies. Many celebrities, like Snoop Dogg, have created and sold their NFT collections online, which has rocketed the NFT market.
Although the trading volumes of NFTs on big NFT markets such as OpenSea are still high, and there are stories about NFTs sold for millions, many are not entirely sure if their utility and potential are worth the investment. To satisfy these groups of investors, the NFT market provides new investment choices, such as NFT stocks.
NFT stocks can be a more intelligent investment in the NFT market since people buy shares of a listed company with NFT-related goals. Simply put, in the case of a future rise in the NFT market, companies’ share value will increase, and so do their NFT stocks.
In this guide, we provide a list of top NFT stocks to buy in March 2023. We also discuss the best markets to buy NFT stocks and how to buy them.
What is an NFT Stock?
A non-fungible token is a unique piece of art that cannot be exchanged since they are 1:1 piece. It means that there are no two equal NFTs. An NFT can be an image, video, GIF, tweet, or audio recording. The unique identity of these digital pieces is verified on the blockchain, which is the same technology that powers cryptocurrencies like Bitcoin, Ethereum, Cardano, etc.
NFT stocks or NFT-related stocks, on the other hand, are similar to the usual stocks of any companies listed on a public exchange.
NFT stocks refer to stocks from companies that are directly or indirectly involved with NFTs through capitalizing on NFTs, releasing their NFTs or betting on them. Thus, investors can buy NFT stocks without owning an actual NFT itself.
Companies issuing NFT stocks are usually checked by the Commodities Trading Commission or Securities Exchange Commission (if in the U.S.) whenever they want to go public. These checks guarantee that the companies will safeguard investor funds to a more acceptable extent than unlisted companies.
Therefore, Companies providing NFT stocks legally guarantee investment in these stocks for a return on profit. In short, investors buy stocks and give the company the funds to invest in things it cares about.
Best NFT Stocks to Buy in 2023
Buying stocks from companies that are involved in NFTs, including creating, trading or developing technology, can be as beneficial as directly owning an NFT. Here, we review the top 10 best NFT stocks to invest in.
1. Dolphin Entertainment (DLPN)
Dolphin Entertainment is an active company in entertainment marketing and premium content. The company released its NFT collection Creature Chronicles which sold out two hours after launch.
Dolphin Entertainment subsidiaries, including 42 West, The Door, Viewpoint Creative and Shore fire Media, allow the company to provide marketing, publicity and content development services in social media and influencer marketing.
Dolphin is also active in both the crypto and NFT world. It partners with FTX exchange regarding crypto. Dolphin and FTX have launched an NFT marketplace for sports and entertainment brands. The company also collaborates with Hall of Fame Resort and Entertainment to produce NFT projects
- Market cap: $18.385 million
- YTD: -53.85%
- Price: $1.78
Established in 1995, eBay is a global online marketplace allowing users to buy and sell goods worldwide. It turned into a publicly-traded company just three years later. eBay trades on the NASDAQ exchange, and the market capitalization reaches over $30 billion. Although eBay specializes in its online marketplace service, it has recently ventured into the NFT space.
eBay allows trusted sellers to list NFTs for sale and has become the go-to place for beginners who wish to buy NFTs. It offers a wide variety of listings, which includes music NFTs, crypto art, and trading cards. When it comes to revenue, eBay charges NFT sellers a flat commission of 5% of the total sale amount. The company also targets allowing traders to sell and pay for goods and services using cryptocurrencies.
This ultimately enables eBay to get a foot into the NFT space without actually taking on any of the perceived risks.
- Market cap: $22.1 Billion
- YTD: -26.69%
- Price: $40.73
Coinbase is one of the leading crypto exchanges that have a leading role in the NFT space. It supports both fiat-to-crypto and crypto-to-crypto transactions. This applies to both retail and institutional products.
Coinbase’s marketplace lets people create, collect, discover, showcase, and trade NFTs. The marketplace is active in the US now and plans to launch in other countries later. In addition to its marketplace, Coinbase is also planning to enable its users to create NFTs directly from within its platform.
- Market cap: $14.22 Billion
- YTD: 82.17%
- Price: $66.15
Cloudflare is a content delivery network and DDoS mitigation company that provides the security and reliability of external-facing resources like websites, APIs, and applications. It serves 32 million HTTP requests per second on average.
Cloudflare also has the potential to support NFTs. However, it does not allow users to create NFTs directly. It offers a Video Stream service, which presents videos as ERC-721 NFTs. These videos can be sold as NFTs, and the owner can receive royalty payments if the video resells.
- Market cap: $18.11 Billion
- YTD: 22.21%
- Price: $55.74
Among the popular NFT stocks is McDonald’s, the well-known fast food chain restaurant. McDonald’s launched its first NFT collection on the 40th anniversary of its popular McRib burger in late 2021.
The NFT collection is built on top of the Ethereum blockchain, and McDonald’s plans to drop new tokens each year. McDonald’s also wants to expand its vast restaurant chain into the metaverse.
- Market cap: $194.83 Billion
- YTD: 22.21%
- Price: $266.34
DraftKings was founded in 2012 and is an American fantasy sports contest and sports betting company. It provides daily and weekly fantasy sports contests where users can win money based on their performance.
It supports five fantasy sports: Major League Baseball, National Hockey League, National Football League, National Basketball Association, and Professional Gofer’s Association.
Besides, it supports the Premier League, NBA, UEFA Champions League, NASCAR auto racing, Canadian Football League, mixed martial arts, Tennis, and XFL league.
DraftKings also offers a marketplace to sell exclusive NFTs and facilitates NFT drops from celebrities. The marketplace was launched in collaboration with Autograph and contained NFT from sportspersons like Tiger Woods, Wayne Gretzky, Tonny Hawk, Naomi Osaka, Derek Jeter, and Tom Brady.
- Market cap: $8.1 Billion
- YTD: -5.3%
- Price: $17.99
Shopify is a global e-commerce platform that provides the listing, selling, and buying of products and services online. Shopify also offers support businesses to launch online businesses and bring their trades online. These businesses can also manage orders, track buying and selling data, do shipping, and track payments.
Shopify is currently beta testing an NFT program that would allow creators and investors to sell NFTs from their stores. Thus, they can mint, list, buy, and sell NFTs on the platform. Customers can claim the NFTs they buy and add them directly to their wallets. Through the platform’s NFT marketplace, traders can pay and get paid for NFTs through credit cards, cryptocurrencies, etc.
- Market cap: $76.47 Billion
- YTD: -27.67%
- Price: $59.92
Mattel was founded in 1945 and is an established toy manufacturing company under brands like Barbie, hot Wheels, etc. The company was first listed on the NASDAQ in 1960, which makes it one of the oldest NFT stocks. The toy manufacturer recently launched an NFT marketplace on Mattel Creations, its collector and direct-to-consumer platform.
In December 2022, Mattel launched Series 4 of the Hot Wheels NFT Garage. Users need no cryptocurrency to purchase NFTs on the Mattel Creations Digital Collectibles Marketplace. Mattel also made it possible for its collectors to trade their NFTs on Mattel’s peer-to-peer platform.
It seems that Mattel is looking to revitalize its business model by entering the NFT space. Since June 2021, Mattel has been auctioning off NFTs that are linked to its popular toy brands.
- Market cap: $5.79 Billion
- YTD: -31.89%
- Price: $16.24
Funko is famous for its trendy character toys with big heads. It also sells unique collectibles. The company produces toys, plush, apparel, board, games, housewares, accessories, and now, NFTs.
They are offered through Loungefly, Funko Games, and Digital Pop brands. Most of its pop culture and consumer products are sold through different websites, such as Funko.com, Loungefly.com, and FunkoEurope.com.
Funko developed Fungo Digital Pop as an NFT marketplace for buying rare NFT collectibles and offering NNFT drops. With an account, you can buy the company’s latest limited edition NFT collectibles featuring Funko’s unique stylized figures.
- Market cap: $37.73 Million
- YTD: -31.89%
- Price: $7.85
Twitter is one of the widely used social media apps that connect people around the world. Twitter does not offer an NFT marketplace or does not allow its users to create or store their own NFTs using the app. However, it has turned into a platform to indirectly promote the most successful NFT collections, such as Bored Ape Yacht Club.
Twitter is crowded with accounts marketing various NFT collections as well as the latest news of the NFT market.
- Market cap: $41.09 Billion
- YTD: 7.46%
- Price: $53.7
Where to Buy NFT Stocks?
As we discussed earlier, NFT stocks are public companies that are involved in the NFT space. Thus, buying NFT stocks can be very similar to buying traditional stocks. Once you decide to buy NFT stocks, you can choose from online trade platforms.
All you need is to choose a stockbroker with low fees. Open and fund your account and buy stocks through the broker’s website! Most brokers accept fiat money as payment for NFT stocks. However, sometimes, you must have a digital wallet funded with cryptocurrencies to pay for NFT stocks. So, it is necessary to carefully study the terms and conditions of the stockbroker you choose to work with.
Have you heard of the NFT index?
An NFT index is a market index that tracks the performance of a collection of non-fungible tokens. Investing in NFT stocks through an NFT index can provide diversification and exposure to the overall NFT market. Still, it’s important to be aware of the risks involved in investing in NFTs.
How to Invest in NFT Stocks?
There are few options when it comes to investing in NFT stocks. You should know it is different from buying an NFT. NFT stocks are traded in stockbrokers like eToro and Webull. The process is almost similar in all stockbrokers. Here are five steps to take in order to invest in NFT stocks:
- Open an Account: The first step is to open an account with a regulated broker.
- Verify: You can either verify your account via mobile or email. When you receive the verification code, you must enter it to sign up.
- Deposit: In order to invest in NFT stock, you must have some funds in your account.
- Choose your NFT stocks: Now you’re signed up with the most popular broker to invest in NFT stocks, you must simply browse the stocks to invest in NFT. Use the search bar at the top to guide you.
- Invest: To buy NFT stock, simply click on the dedicated page of the stock and press the Trade button. Enter the amount of stock you wish to purchase and press Open Trade.
NFT Stocks vs Traditional Stocks
A stock, or equity, refers to a security that represents the ownership of a fraction of the issuing corporation. Units of stock are shares that define the proportion ownership of a shareholder from the assets and profits in a company or corporation. Stocks are bought and sold predominantly on stock exchanges.
NFT stocks are issued by a company or corporation that is involved in the NFT market in some way. Just like traditional stocks, NFT stocks are also traded through stockbrokers. However, some stockbrokers require buyers to pay cryptocurrencies instead of fiat money to buy NFT stocks. Thus, having a digital wallet and funding it with the desired crypto would be necessary.
Therefore, with an NFT, you own a digital piece of art that could be a diversified asset in your portfolio, but with an NFT stock, you are investing in a specific company associated with the NFT space.
NFT Stocks FAQs
Can an NFT be a stock?
In some cases, an NFT can be considered a form of stock. This is possible when a company issues an NFT that represents shares in the company or ownership of a specific asset. NFT stocks are shares of any listed company that is involved in the NFT market, whether it is by creating an NFT marketplace, their own collection or an NFT-enabled product. But NFTs are unique digital assets that live on a blockchain and are traded based on smart contracts.
How to find NFT stocks?
There is a list of NFT stocks in this article. Also, you can search for companies that are active in the NFT space and check if they provide shares as NFT stocks. You can also check a reliable stockbroker site to find your desired NFT stocks.