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ZKIN - ZK International Co News Story

$4.47 0.2  3.5%

Last Trade - 14/05/21

Sector
Consumer Cyclicals
Size
Small Cap
Market Cap £80.3m
Enterprise Value £90.6m
Revenue £61.6m
Position in Universe 5053rd / 6846

NFT-related stocks draw attention as digital asset buzz grows

Thu 18th March, 2021 5:48pm
By Sinéad Carew
    March 18 (Reuters) - The popularity of non-fungible tokens,
a type of digital asset that is authenticated by blockchain, is
spreading to equities as investors focus on shares of online art
trading platforms and companies making NFT-related
announcements, sparking outsize moves in their stocks. 
    Shares of Sino-Global Shipping America Ltd.  SINO.O , a
shipping and logistics company, were last up 12% after rising as
much as 33% after the company said it will launch an exchange
for NFTs with e-commerce public chain CyberMiles. The stock,
which recently traded at $9.66, rose 85% in the last eight
sessions. 
    Shares of pipe maker ZK International Group  ZKIN.O , last
up 6%, rose as much as 20% before paring gains on Thursday after
it said subsidiary xSigma Corporation would develop an NFT
marketplace where users could buy and sell NFTs and create their
own custom assets in a few clicks.  
    Investors also appeared to be betting that art-related
companies would profit from NFT, with U.S. shares in art trading
platforms Takung Art  TKAT.N   1QH.F  Oriental Culture Holding
 OCG.O  changing hands rapidly on Thursday. 
    Takung shares - last down 8% after rising as much as 79%
earlier in the session - had soared more than 700% in the last
five sessions. Oriental Culture's shares, which rose as much as
60% on Thursday before turning down 3%, had risen 200% in the
last five sessions.  urn:newsml:reuters.com:*:nL1N2LG1HE
    The popularity of NFTs has exploded during the pandemic, as
enthusiasts and investors scramble to spend enormous sums of
money on items that exist only online.
    Last month, musician and artist Grimes, who is dating Tesla
Chief Executive Officer Elon Musk, sold some animations she made
on a website called Nifty Gateway for more than $6 million.
 urn:newsml:reuters.com:*:nL8N2LA5UN
    Earlier this month, a $70 million digital-only artwork was
auctioned by Christie’s to a crypto asset investor who goes by
the pseudonym “Metakovan.”  urn:newsml:reuters.com:*:nL8N2LA5UN
    Some investors said the rush into NFTs echoes a 2017 rush https://www.reuters.com/article/uk-stocks-cryptocurrency-analysis/cryptocurrency-stocks-holding-gains-despite-bitcoin-pullback-idUSKBN1EG24P
 into the stocks of companies making blockchain or
cryptocurrency announcements, including Long Island Iced Tea
Corp, a beverage maker whose shares soared after the company
said it would rebrand itself Long Blockchain Corp. 
    Kim Forrest, chief investment officer at Bokeh Capital
Partners in Pittsburgh, said the interest in companies involved
in digital assets is "largely driven by the people that think
they missed bitcoin."
    "Buying the companies offering NFT would be like buying
companies that have some sort of dealings with bitcoin in the
early days," Forrest said.
    But, the money manager was skeptical about how well NFT
would fare in the long run, saying "This is the electronic
version of a Beanie Baby – remember that craze?" 
    Trading volume in Culture was 4.4 times its 10-day moving
average, while Takung was 3.7 times its 10-day moving average. 
    

 (Reporting By Sinéad Carew; Editing by Ira Iosebashvili and Dan
Grebler)
 ((sinead.carew@thomsonreuters.com; +1 (646) 223 6186; Reuters
Messaging: sinead.carew.thomsonreuters.com@reuters.net))
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