First NTF investment firm set for London IPO: time to get in?
Blockchain technology
Posted by MoneyController on 05.04.2021
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Mike Edwards and Jonathan Bixby, founders of Guild Esports Plc and Cellular Goods Plc, are turning their attention to a popular phenomenon in the crypto world: Non-fungible tokens (NFTs). The two entrepreneurs created the firm NFT Investments in order to capitalize on the booming NFT market and now plan to take the company public. According to initial details, the firm will be listed on the Aquis Stock Exchange with the company being valued at 25 million pounds. The initial offering will consist of a float of 200 million shares, priced at 5 pence per share. The firm also plans to offer a secondary offering after the first year to raise more funds. The public listing would also make NFT investments the first-ever firm in this sector to go public. The stock could start trading as soon as later this month.
Growing public interest
NFTs are particularly popular in the creative arts industry. Any digital artwork can be placed on the NFT auction market. Since the NFTs are based on blockchain technology, they are associated with a unique address on the blockchain that can then be traded. This also prevents copycats and unauthorised duplication, as the true owner of the artwork can be verified from the public record of the blockchain.
Only last month, an NFT created by Beeple sold for 69 million dollars, the highest amount an NFT has attracted so far. Twitter’s founder Jack Dorsey has also made an NFT out of his first ever tweet and auctioned it. And just last week, the New York Times converted one of its articles into an NFT and sold it. Even Elon Musk jumped on the NFT train by offering a song about NFTs as an NFT, an offer he later withdrew.
Large institutions reluctant
While the current boom is indeed tempting, large institutions are staying on the sidelines for now. Transferring ownership of the blockchain address can be complicated; but more importantly, the tax implications of owning the digital property remain unclear. According to Ulrich Urbahn of the Berenberg Bank, NFTs are interesting and have some very useful applications. That said, he believes they are not investable for large institutions at this point. Once we have more clarity on the sector’s future and regulation, institutional investors may start investing. But for now, they’re taking the prudent approach and sitting this one out.
