(Reuters) – Shares in some non-fungible token (NFT) -based companies – a type of blockchain-proven digital asset – spun higher Monday, benefiting from their status as the move latest hot on social media.
Shares in companies with an online art presence such as Takung Art and Oriental Culture expanded profits shortly after news that Twitter chief Jack Dorsey sold his first tweet – “just setting up my twttr” with the 21 March, 2006 – as an NFT for just over $ 2.9 million Monday.
“It’s the hustle and bustle, the hot thing on Wall Street,” said Dennis Dick, head of market structure and property trader at Bright Trading LLC in Las Vegas, who said the movements without a clear catapult were similar to due to a combination of retail traders. looking at stocks cited in relation to NFT on social media and algorithmic traders building on the trend.
“It all ends in tears maybe, but right now there is a fear of losing out (FOMO),” Dick said. “You have a mix of retail traders and momentum driving prices.”
U.S. shares of Takung, which are also listed in Frankfurt, rose 65.1% at $ 49.00 with volume rising 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, last rose 24.1%, with trade volume exceeding the 10-day moving average. Its shares had come out Thursday last week, with companies in industries as diverse as shipping and piping delivery making the NFT announcement.
Other stocks tagged by social media such as NFT plays also won. Kuke Music Holding, a China-based classical music licensing, membership and education service provider, rose 11.8%.
Hall of Fame Entertainment ended its shares up 32.2% at $ 5.29 on Monday, with volume more than 9 times the 10-day average.
(Reciting with Sinéad Carew and Chuck Mikolajczak; edited by Richard Pullin)