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ZKIN - ZK International Co News Story

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

UPDATE 1-NFT-related stocks gyrate wildly as digital asset buzz grows

Fri 19th March, 2021 12:19am
(Updates share prices)
    By Sinéad Carew
    March 18 (Reuters) - The popularity of non-fungible tokens
(NFT), a type of digital asset that is authenticated by
blockchain, is spreading to equities as investors turn their
focus to shares of online art trading platforms and companies
making NFT-related announcements, sparking outsize swings in
their stocks.
    Excitement around NFTs has exploded during the pandemic, as
enthusiasts spend enormous sums of money on artworks and other
items that exist only online, with some selling for tens of
millions of dollars. That appears to have fired up interest in
companies that may have a connection to the NFT world.
    Shares of shipping and logistics company Sino-Global
Shipping America Ltd  SINO.O  have risen more than 300% this
year. The company in recent weeks has said it would accept
bitcoin as payment and made other announcements related to
cryptocurrencies and blockchain. 
    Sino-Global, which has a market capitalization of around
$123.4 million, said on Thursday it will launch an exchange for
NFTs with e-commerce public chain CyberMiles. Sino-Global shares
rose by more than 33% before closing down 0.4% at $8.54.
    Shares of pipe maker ZK International Group  ZKIN.O 
finished up 0.8% at $8.77 after rising as much as 20% on
Thursday. ZK announced earlier in the week that its subsidiary
xSigma Corp would develop an NFT marketplace where users could
buy and sell NFTs and create custom assets in a few clicks. Its
stock is up almost 240% this year.
    Investors were also betting that art-related companies would
profit from NFT, sending shares of art trading platforms Takung
Art  TKAT.K   1QH.F  and Oriental Culture Holding  OCG.O 
gyrating.
    Takung U.S. shares closed up 33% at $30.06 after notching
big swings. The stock is now up 1,900% year-to-date. 
    Oriental Culture's shares rose as much as 60% on Thursday
before closing down 4.2%; they have gained 107% year-to-date.
 urn:newsml:reuters.com:*:nL1N2LG1HE
    Outside of the stock market, the trend has brought big
profits to some artists and collectors.
    Last month, musician and artist Grimes, who is the romantic
partner Tesla Chief Executive 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 run on NFT-related shares 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 it 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: "This is the electronic version of a
Beanie Baby – remember that craze?" 

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