Non-fungible tokens (NFT’s) have gained considerable prominence over the past few months by serving as a gateway for young investors on the crypto block while taking advantage of global technical and artistic innovations. While these digital collectibles are selling at high premiums, there are plenty of risks associated with the NFT investment frenzy. And, naturally, we think overvalued NFT stocks should be avoided. Hall of Fame Resort & Entertainment (HOFV), Cinedigm (NASDAQ:CIDM), and the Liquid Media Group (YVR) are three such stocks. read on.The excitement among investors around non-fungible tokens (NFT) has exploded this year, with enthusiasts spending big sums of money on artwork and other digital items. NFT systems usually rely on the Ethereum Blockchain. The NFTs are attached to brands or even people that are expected to gain in the coming years. Ranging from tech websites to TV networks, NFT’s are gaining popularity in every industry. However, there is little doubt that the latest NFT craze is fueled by speculators and not enthusiasts.
Non-fungible tokens are digital assets that represent a wide range of unique tangible and intangible items, from collectible sports cards to virtual real estate and even digital sneakers. But behind the positive picture of this blockchain game lie quite a few risks. Confusing hype, the whims of rich collectors, and the potential for fraudulent actors could add to investors’ risks in the budding space. The NFT marketplace is one which has both the potential for incredible success and catastrophic losses.
As such, we believe overvalued NFT stocks Hall of Fame Resort & Entertainment Company (HOFV), Cinedigm Corp. (CIDM), and Liquid Media Group Ltd. (YVR), which are caught up in the frenzy, should be avoided now.