Beauty is in the eye of the beholder, as the saying goes. And for many, the beauty these days is in the form of an NFT, an abbreviation for non-fungible sign.
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NFTs have been around for a few years, but only one year, after one of them sold at auction for $ 69 million, did the world of non-fungible signs become headlines. For investors, their desire to capitalize on the NFT craze suddenly exploded. This is especially true in the world of sports collectibles, such as in Topps’ upcoming IPO. More on that later.
Why are they called non-fungible signs? Because it is simply put, it is digital originals that are non-fungible, which means it cannot be duplicated. It can become a work of art, a video clip, a comic strip, a music file or a baseball trading card, digitized, verified and stored in a way that makes it unique. And as people know what trade in the world of collectibles, the rarer something is, the higher the cost of owning it.
NFTs are listed on a ledger and are stored using blockchain technology, the same technology used to verify the use of Bitcoins, such as for investments or purchases.
The $ 69 million non-flammable sign
The $ 69 million NFT, an original work of art created by artist Mike Winkelmann, was auctioned off in March. Better known as Beeple, he took the first 5,000 digital artworks he created over years of work. Then he made them into a unique digital collage.
Before NFTs, it was almost impossible to verify and “own” digital art since it could be digitally copied. As the NFT provides a unique, memorable signature, owners can now prove their origins.
These are reasons why NFTs have attracted greater interest in the world of sports collectibles, especially in the arena of trading cards. And that’s what makes Topps’ upcoming initial public offering one to look at. Topps, a leader in dog, soccer and basketball trading cards, recently expanded its business with non-fungible signs.
Top IPO Plan and NFTs
Topps said this week that it will be announced through a merger with Mudrick Capital Acquisition Corp, a specialty procurement firm, or SPAC. The deal values Topps at $ 1.3 billion. The company expects to generate a return of up to $ 571 million in cash.
It was an explosive time for initial public offerings. The first quarter was the busiest since 2000. And if SPACs are added, the IPO market was downright ballistic.
Topps plans to use the NFT market as a ‘growth accelerator’. The company reported total sales of $ 567 million in 2020, an increase of 23% from the previous year. About 6% of that comes from digital product sales, according to a Coindesk article.
“We were one of the first brands to take full advantage of the potential of NFTs,” said Tobin Lent, vice president and general manager of digital at Topps, in written comments with a recent announcement about Godzilla NFT collectibles.
Former Disney (DIS) CEO Michael D. Eisner, now chairman of Topps, becomes chairman of the combined company’s board of directors. The companies expect the deal to close in the late second or early third quarter. In addition, it will trade on the Nasdaq under the right card TOP.
Tom Brady launches NFT platform
Future Hall of Fame quarterback Tom Brady is also launching an NFT platform called Autograph. A Brady representative told CNN a Brady representative said it needs to work with some of the biggest names in sports, entertainment, fashion and pop culture to work with creators and develop unique digital collectibles.
In addition, Dapper Labs in Vancouver, the company behind the National Basketball Association’s digital collection platform Top Shot, recently closed a $ 305 million financing round led by an investment firm. Dapper plans to expand its NFT platform to allow users to buy and sell digital trading cards that include a snippet of the best recordings or plays from an NBA player.
Experts estimate Dapper at $ 2.6 billion. Soon, Brave NFT Collectibles is planning for the Las Vegas-based Ultimate Fighting Championship.
On its website, Dapper says that blockchain technology, the key element in the success of NFTs, is the biggest thing that has happened to the internet since the iPhone. It will change the way we use and interact with digital worlds. “
Follow Brian Deagon on Twitter @IBD_BDeagon for more information on technology stocks, analytics and financial markets.
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