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NFT related stock recommendation ranking! Explains how to choose and points to note when purchasing

Official | 2022.12.09

Text by ゆーすけ

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Many people are worried that they want to invest in the topical NFT market and make a profit, but there are many types of NFT stocks and information changes quickly, so it is difficult to decide which stock to invest in.

In this article, we will explain the characteristics of NFT brands, how to make a profit easily, and whether there are any recommended NFT brands.

Please read to the end as we also explain the points to be aware of when investing in NFT stocks and future prospects.

1. What is an NFT stock?

NFT stocks are classified into two types.

  • Virtual currency that can be used to buy and sell NFT
  • Shares of companies participating in the NFT market

In general, NFTs involve virtual currencies, so not only virtual currencies used for NFT trading, but also companies and exchanges entering the NFT market are included in NFT stocks.

In the first place, NFT means “non-fungible token”. There is only one work in the world with the same data, so it has the characteristics of being rare and easy to value.

Cryptocurrencies are used to buy and sell NFTs, often using ETH or the original currency of the NFT project.

The trading volume of NFT itself is not bad as of April 2022, and the trading volume of OpenSea, the world’s largest NFT market, is recovering, and the number of traders is rising ( Reference: CT Analysis NFT “April NFT Market Trend Report” released for free│CRYPTO TIMES ).

Since NFT itself is still attracting attention, let’s know the recommended NFT brands in this article.

2. NFT stock (crypto asset (virtual currency))

NFT stocks are mainly cryptocurrencies, and the volatility is intense, so if you can select stocks, you can earn big profits in the short term. However, since the risk increases accordingly, do it within the risk range and select the stock before investing.

(1) How to select NFT stocks (crypto assets)

There are three ways to select NFT stocks for virtual currency.

  • Is it a trending brand?
  • does it have a future

I will explain them one by one.

①Is it a trending stock?

The easiest way to profit from investing in NFT stocks is to “ride the trend”.

A recent good example is STEPN, the pioneer of a highly trendy project called “Move to Earn”. It has more than doubled in price.

Reference: STEPN│CoinMarketCap

The reason why the price of STEPN has risen so much is that the popularity spread from the catchphrase “You can earn money by walking”, and it was recognized even among people who have never touched virtual currency or NFT.

In this way, if you collect information on a daily basis, you will be able to suppress trending stocks and earn large profits in the short term.

②Is there future potential?

In addition to short-term perspectives such as trends, it is also an effective way to select NFT stocks that have long-term future potential.

For example, NFTFi is one of the most anticipated genres of NFTs and has the following features.

  • Make it possible to lend and borrow NFTs
  • Increase NFT usage
  • Benefit from an increase in NFT market size

NFTFi is a genre that adds a DeFi element (allowing you to lend and borrow money without a third party’s intermediary) to NFT. You will be able to get operational profit.

If the use of NFT increases, the number of users using NFTFi will increase, which may increase the price of the stock.

Since it is possible to make a real estate loan with BTC and ETH as collateral, there is a good possibility that a similar mechanism will appear for NFT (Reference: Japan’s first personal real estate loan with Bitcoin and Ether collateral, Provided by Fintertech | Yahoo! News ).

It is also recommended to anticipate further leaps in the NFT market and prepare stocks with bright future prospects now.

In addition, actually using the NFT brand project is also an effective way to determine whether it is likely to grow in the future.

Even if an NFT game that looks like it has a lot of money and looks interesting appears, if the users who actually play it don’t find it interesting, they will leave and the price of the brand will not rise because no funds will be invested.

This applies not only to NFT stocks but also to stock investments, so investing in stocks that you want to use over the long term is an important point in making a profit.

(2) NFT brand (crypto asset) recommended ranking

The following three NFT stocks are recommended.

  • Apecoin(APE)
  • Decentoraland(MANA)
  • JPEG‘d(JPEG)

I will explain them one by one.

①Apecoin(APE)

Crypto asset nameApecoin(APE)
Market capitalization
(as of May 17, 2022)
¥301,511,309,781.54
feature・ Operated by BAAYC, a major NFT project
・ Already has various uses (voting rights for governance, settlement, etc.)
available exchanges・Binance
・Bybit
Official URLhttps://apecoin.com/

Apecoin is a stock associated with Yuga Labs, which operates the popular NFT project BAYC. As of May 17, 2022, it has the second largest market capitalization among NFT brands, and it can be said that it is highly reliable because it is operated by Yuga Labs.

There is a possibility that it will be used in BAYC games in the future, and it is also supported as a payment currency for “TIME”, a US news magazine.

Further price increases are expected depending on BAYC’s outlook.

②Decentoraland

Crypto asset nameDecentoraland(MANA)
Market capitalization
(as of May 17, 2022)
¥286,018,548,662.15
feature・Original Metaverse Project
・Already partnered with large companies and government agencies such as Coca-Cola and JP Morgan
available exchanges・Binance
・Bybit
Official URLhttps://decentraland.org/

Decenoraland is one of the recent buzzwords of the “Metaverse” project, and it has a lot of creator functions, so anyone can easily create content.

You can also trade items that can be used in Decentoraland using your own token, MANA, and it is also a great feature that utilities are already provided.

We have partnerships with large companies such as Coca-Cola and JP Morgan as well as government agencies, and it will definitely be a project that will benefit if the Metaverse market expands.

Bloomberg also estimates that the market size will grow from 478.7 billion dollars (approximately 60 trillion yen in Japanese yen) to 783.3 billion dollars (approximately 98 trillion yen in Japanese yen) in 2024.

③JPEG‘d

Crypto asset nameJPEG‘d(JPEG)
Market capitalization
(as of May 17, 2022)
No data
feature・ Adopts NFTFi and NFT x DeFi with future potential
available exchanges・Binance
・Bybit
Official URLhttps://jpegd.io/

JPEG’d is one of the NFTFi projects, and you can earn yield income by depositing NFTs with strong collection elements such as Cryptopunks and BAYC.

Conversely, the borrower can also raise funds without selling the NFT.

NFTFi is still small today, but given the rapid growth of the DeFi market in the past, NFTs have the potential to grow as well.

(3) Points to note when purchasing NFT stocks (crypto assets)

There are three things to keep in mind when purchasing NFT stocks.

  • many scam projects
  • The strength of the community is proportional to the strength of the NFT project
  • The behavior of project members has a great impact on future prospects

I will explain them one by one.

①There are many fraud projects

There are many fraud cases in NFT and virtual currency projects.

To prevent your investment funds from being stolen, check the white papers and roadmaps announced by the project to see if the content is complete.

If the content is thin, it may be a scam, and even if it is not a scam, it is often a low investment value and should be avoided.

② The strength of the community is proportional to the strength of the NFT project

Many NFT projects have communities such as Discoed, and it can be said that the strength of the community is proportional to the strength of the NFT project.

Community activities are often seen in play to Earn games, and if the community is strong, a lot of users will gather and the project will be lively.

③ The conduct of project members has a great impact on future prospects

The behavior of the members who operate the invested NFT project has a great impact on the future prospects of the project.

If a member’s remarks are rough or something that encourages investment, naturally more people will leave, and the risk of the project disappearing will also increase.

When you go to the official website of the project, if it is not an anonymous project, the member’s characteristics and SNS accounts are described. Especially with SNS accounts, you can see the behavior of the member very well, so it is a good idea to check how people around you are reacting to what you say on SNS.

(4) Future outlook for NFT stocks (crypto assets)

NFT is a field that has not yet developed, and many companies and organizations are entering the boom now.

However, not all projects will grow significantly in the future. In fact, in this world, the flow of information is fast, and many projects disappear in a short span of time. In the future, it is no exaggeration to say that most projects will decline.

Therefore, it will continue to be important to switch early, recognizing that it is not possible to make money by investing in any stock, and that many projects will not last long.

2. NFT stocks (stocks)

NFTs can be invested not only in cryptocurrencies but also in companies entering the NFT market. We will explain in order from how to choose when investing in companies that have entered the NFT market.

(1) How to select NFT stocks (stocks)

NFT stocks (stocks) should be selected with the following points in mind.

  • Are you making a business model in which only companies can make money?
  • Whether the company has capital
  • Are you a company that creates projects on the base?

I will explain them one by one.

① Are you making a business model in which only the company is profitable?

People investing in the cryptocurrency and NFT markets tend to dislike centralized controls and business models where only companies make money.

If you expect the stock price to rise, choose a company that offers benefits to both the company and creators.

② Whether the company has capital strength

Large companies with capital can invest quickly in NFTs and cryptocurrencies. NIKE also acquired the emerging NFT brand RTFKT and recently launched digital sneakers.

It is recommended as an investment destination because there is a possibility of rapid growth in the NFT market if there is a large amount of capital.

③ Is it a company that creates projects on the base?

A project on the base is a company that creates a so-called “platform”.

For example, on the platform type Ethereum, many projects are deployed on it. As the project grows, the price of the underlying Ethereum, as well as the stock, will likely rise.

On the other hand, even if Ethereum itself grows, the prices of the symbols of the deployed projects will not increase much.

Therefore, investing in a company that creates a platform-type business has a higher return on investment.

(2) NFT brand (stock) recommended ranking

The following three types of NFT brands (stocks) are recommended.

  • NIKE
  • square Enix
  • Coinbese

I will explain them one by one.

①NIKE

NIKE, which acquired NFT startup RTFKT, is now entering the Metaverse industry.

However, in December 2019, it acquired a patent for “tokenization technology for sneakers using Ethereum’s blockchain technology” and can be expected to enter the NFT industry.

Fashion and NFT go well together, so there is also the possibility of collaborating with a business that builds a metaverse space like Decentoraland.

② Square Enix

Game company Square Enix has announced that it will introduce NFTs in its medium- to long-term strategy for 2022, and is considering issuing its own tokens.

Games and NFTs go well together, and Axis infinity is booming in 2021.

Square Enix has also invested in major Web 3.0 company Animoka brand, Metaverse platform Sandbox, etc., so it is expected that Square Enix’s focus on NFT will deepen their relationship (reference: Square )・Enix plans to issue tokens and invest in Web3 games│COINTELEGRAPH ).

③Coinbese

Coinbese, the largest cryptocurrency exchange in the United States, recently released a beta version of its NFT market. Unlike other marketplaces, it has a follow function and a recommendation function on the market, making it easier to use than the conventional market.

Since Coinbese is centered on the virtual currency exchange business, it is considered that they have a wealth of experience in knowledge of virtual currencies and NFTs, and it can be said that they have an advantage in information resources over companies that have newly entered the NFT industry.

(3) Points to note when purchasing NFT stocks (stocks)

There are two points to note when purchasing NFT stocks (stocks).

  • US stocks likely to correlate with prices of NFT stocks (crypto assets)
  • Companies that are not compatible with NFTs are unlikely to succeed

I will explain them one by one.

① US stocks are highly likely to correlate with NFT stock (virtual currency) prices

US stocks are highly correlated with Bitcoin, and as of May 2022, the correlation coefficient between the US major stock index S&P 500 Index and Bitcoin has been a high value of 0.85 since late March (Reference: Bitcoin hits $28,000 again due to turmoil in the US stock market, changing the balance of power in the stablecoin market |

Also, the 30-day correlation coefficient of the NASDAQ index, which is centered on tech stocks, is 0.70 as of April 2022.

Virtual currency and NFT-related corporations are often tech-related companies and large companies, so be aware that Bitcoin price fluctuations may be linked.

② Companies that are not compatible with NFTs are unlikely to succeed

Companies in genres that are not compatible with NFT tend to have a lower probability of success in the NFT market.

It will be important to see in advance whether companies have successful cases in the following fields that are compatible with NFT.

  • art
  • music
  • Trading cards
  • game
  • fashion

(4) Future prospects for NFT stocks (virtual currencies)

As for the outlook for stock NFT stocks, it can be expected that more and more large companies will enter the market in the future.

Many large companies have already entered the market and invested in it, and Instagram, operated by Meta, one of GAFAM, has announced the introduction of NFT into the app.

In addition, capital inflows from institutional investors are currently progressing in the cryptocurrency market, so it is expected that the NFT market will also gradually receive capital inflows.

3. Get used to NFT first and catch the trend

There are two types of NFT stocks: virtual currencies and stocks. It is recommended to invest in virtual currencies if you want high risk and high return, and stocks if you want low risk and low return.

In order to select NFT stocks, it is first necessary to understand what kind of NFTs are currently popular, but it is better to buy and sell NFTs yourself to quickly know the market situation.

However, NFT trading is basically done on the Ethereum chain in many cases, and the gas fee (commission) on the Ethereum chain is currently soaring.

HINATA is recommended for those who want to start cheaply to get used to it. You don’t have to pay for gas and you can trade using fiat currency, so even beginners can start with peace of mind.

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