Stocks

TKAT Stock: Takung Art surges on NFT craze

NFT (Non-fungible tokens) are gaining crazy amounts of attention and shares of Takung Art (TKAT) surged 27%.

NFTs are digital files like art, images, and music that are housed on blockchain, the digital ledger technology that underpins cryptocurrencies. Some NFTs have now sold for millions of dollars, prompting some firms to start selling them and many people to think the asset class has enormous potential, similar to how cryptocurrencies did in the early days.

Takung isn’t in the NFT space yet, but it runs an online business that enables designers, art sellers, and buyers to trade and invest in artwork. This seems to be a great place to start selling digital art, which is a big part of the NFT market.

Takung’s stock has grown from $1.35 per share to about $26.60 per share in the last year. Even if the business were to enter the NFT space, the run-up would not seem to be feasible.

Furthermore, since the NFT market is a new asset class with the potential to be extremely unpredictable, I would trade with great caution and extensively research the company before investing.