Everyone seems to be launching their own non-fungible tokens (NFTs) these days, and now the world’s largest stock exchange is joining the party.
The New York Stock Exchange recently announced that it is minting its own NFTs to celebrate the first trades of several big company listings.
The NYSE‘s first class of NFTs are of Spotify (NYSE:SPOT)— the first ever direct listing — and then Snowflake (NYSE:SNOW), Unity (NYSE:U), DoorDash (NYSE:DASH), Roblox (NYSE:RBLX), and Coupang (NYSE:CPNG), which are some of the larger traditional U.S. initial public offerings (IPOs).
“Innovation is what we do at the NYSE. We were the first with Direct Listings and at the forefront of the emergence of SPACs [special purpose acquisition companies]. Now we want to help drive this new wave of NFT innovation,” NYSE tweeted following the announcement.
NFTs are digital files such as art, video, audio, and other files stored on a blockchain, which is the digital-ledger technology that powers cryptocurrencies. Some NFTs have already sold for tens of millions of dollars.
The NFT market has taken hold in recent months, with all sorts of organizations creating their own NFTs from the National Basketball Association launching its own digital trading card to the sale of digital art.
The market for NFT assets, as well as for companies getting into the space, has been extremely volatile, so trade with caution. But the new asset class seems to be getting further adoption with each passing day.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Fintech Zoom premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.