Shares in companies linked to non-fungible tokens soar

Hall of Fame Resort & Entertainment Co

22/03/2021 21:26

March 22 (Reuters) - Shares in some companies linked to
non-fungible tokens (NFT) - a type of digital asset that is
authenticated by blockchain - spiked higher on Monday,
benefiting from their status as the latest hot trend on social
media.
    Shares in companies with an online art presence such as
Takung Art  1QH.F   TKAT.K  and Oriental Culture  OCG.O 
extended gains soon after news that Twitter  TWTR.N  boss Jack
Dorsey sold his first tweet - "just setting up my twttr" dated
March 21, 2006 - as an NFT for just over $2.9 million on Monday.
 urn:newsml:reuters.com:*:nL4N2LI09W
    "Its the buzz, the hot thing on Wall Street," said        
Dennis Dick, head of markets structure and a proprietary trader
at Bright Trading LLC in Las Vegas, who said the moves without a
clear catalyst were likely due to a combination of retail
traders looking at stocks mentioned in connection with NFT on
social media and algorithmic traders picking up on the momentum.
    "It all ends in tears probably, but right now there's a fear
of missing out (FOMO)," said Dick. "You have a combination of
retail and momentum traders driving prices."
    U.S. shares of Takung, which is also listed in Frankfurt,
were last up 65.1% at $49.00 with volume picking up sharply
around 1330 EDT (1730 GMT). Takung, which runs an online art
trading platform, has been wildly volatile recently, rising from
a $2.59 close on March 10 to a high of $50.84 on Monday.
    Oriental Culture, an online provider of collectibles and
artwork, was last up 24.1%, with trading volume surpassing the
10-day moving average. Its shares had gyrated on Thursday last
week, with companies in industries as diverse as shipping and
pipe production making NFT announcements.  urn:newsml:reuters.com:*:nL1N2LG2H9
    Other stocks tagged by social media as NFT plays were also
gaining. Kuke Music Holding  KUKE.N , a China-based classical
music licensing, subscription and education service provider, 
rose 11.8%. 
    Hall of Fame Entertainment  HOFV.O  saw its shares finish up
32.2% at $5.29 on Monday, with volume more than 9 times its
10-day average.
    

 (Reporting By Sinéad Carew and Chuck Mikolajczak; editing by
Richard Pullin)
 ((sinead.carew@thomsonreuters.com; +1 (646) 223 6186; Reuters
Messaging: sinead.carew.thomsonreuters.com@reuters.net))