Motley Fool Issues Rare "NFT" Stock Alert

Andrea J.

Andrea J.
Investing
April 20, 2024

When the Internet was first invented in the 1960s, it was intended to be a military technology — no one could have predicted the impact it would have just decades later.

Today, we use the Internet for everything: social communication, dating, grocery shopping, work, paying bills, buying homes, and more.

And now there’s a new technology being talked about — one that has everyone from Mark Cuban to Gary Vaynerchuk excited — and it’s only in its infancy stage, with so much room to expand into mainstream everyday life, just like the Internet did.

In fact, sales in this space grew to more than $17 billion in 2021, a 21,000% increase from 2020′s total of $82 million.

We’re talking about NFTs (Non-Fungible Tokens), and our expert team of analysts has identified a company that secures and improves Internet performance, creating an important infrastructure for the transfer of NFTs.

And you can invest in this company as a stock — without having to download a coin wallet or gamble on a piece of digital art… but more on that in a minute.

First, let’s explore what an NFT even is. A non-fungible token is essentially a line of blockchain code that represents a one-of-a-kind object.

Sotheby’s recently sold a set of 107 NFTs representing images of cartoon apes for $24.4 million — and that’s just the tip of the iceberg.

To combat fake sports memorabilia, the NBA launched “Top Shot” — a place where fans can buy digital cards that represent NBA players and moments. So far, they’ve watched their users trade more than $1 billion in NFTs.

Even more interesting, Mark Cuban, owner of the Dallas Mavericks, has suggested using NFTs to sell tickets to games. That would mean that every ticket would have a unique blockchain code (no fake scalpers here!), and even more importantly, every time the ticket is resold, the Mavs would profit from a percentage of the sale.

This could revolutionize the ticketing industry. But it goes even further than that.

Because blockchain records every transaction, it's possible in the future that smart contracts rather than lawyers and escrow accounts will be used when money and assets are changing hands.

This could impact markets like vehicle sales… and even property sales. The World Bank estimates that only around 30% of the global population has legally registered rights to their land and property. NFTs are a potential part of the solution to that issue as they have clear records that cannot be changed.

But, there’s a catch... Investing in NFTs right now is risky.

The most common route to invest in NFTs is to buy them outright. Buy art from a place like Sothebys, buy sports memorabilia, buy NFTs in videogames…

But we think this is a perilous approach. The non-fungible aspect of NFTs is the precise thing that makes them so valuable but also so risky. One NFT could take off in value, while another could tank. And right now, it’s a bit like a casino filled with buyers betting on potential winners in the hopes of getting rich.

Our expert team of analysts at The Motley Fool thinks there’s a better way... One that involves looking for the shovel to mine the gold, rather than for the gold itself.

We’ve identified a company that is essentially acting as a medium that will tie an NFT to a piece of content, and then will display a link to the NFT and contract. It is positioning itself to be the essential foundation for NFTs as they go from niche to mainstream life.

We have all the details on this company as well as two others in our new NFT Report, available for free to members of Rule Breakers. And with our 30-day membership fee guarantee, there’s virtually no risk to signing up and snagging the report.

For information on how you can join Rule Breakers — and learn about the stock we think can power the NFT market — simply enter your email address below.

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