(Reuters) – Shares of some companies related to non-fungible tokens (NFTs), a type of blockchain-authenticated digital asset, rose on Monday, benefiting from their status as the latest hot trend on social media.
Shares of companies with an online artistic presence like Takung Art and Oriental Culture extended earnings soon after the news Twitter boss Jack Dorsey sold his first tweet – “I just set up my twttr” dated March 21, 2006 – as NFT for just over $ 2.9 million on Monday.
“It’s the buzz, the hot thing about Wall Street,” said Dennis Dick, head of market structure and proprietary trader of Bright Trading LLC in Las Vegas, who said the moves without a clear catalyst were likely due to a combination. of retail traders looking at the shares mentioned in relation to NFT on social media and algorithmic traders who are picking up the momentum.
“It probably all ends in tears, but right now there is the fear of losing (FOMO),” Dick said. “You have a combination of retail and momentum traders driving prices.”
US shares of Takung, also listed in Frankfurt, rose 65.1% to $ 49.00 with a sharp increase in volume around 1330 EDT (1730 GMT). Takung, who runs an online art trading platform, has been wildly volatile recently, rising from a close of $ 2.59 on March 10 to a high of $ 50.84 on Monday.
Oriental Culture, an online provider of collectibles and artwork, recorded a 24.1% increase, with trading volume exceeding the 10-day moving average. Its stock surged Thursday last week, with companies in sectors as diverse as shipping and tube manufacturing making NFT announcements.
Other titles tagged by social media as NFT games were also earning. Kuke Music Holding, a China-based provider of classical music licenses, subscriptions and educational services, grew 11.8%.
The Entertainment Hall of Fame saw its stock finish up 32.2% to $ 5.29 on Monday, with volume more than 9 times its 10-day average.
Reporting by Sinéad Carew and Chuck Mikolajczak; edited by Richard Pullin