Still Strong NFT Craze... Consecutive New Highs

Kakao Games, HYBE, Wemade, and Others Hit Consecutive Record Highs

[Asia Economy Reporter Minwoo Lee] Stocks of companies involved in or mentioning non-fungible token (NFT) related businesses are consecutively hitting all-time highs. While there are concerns about excessive hype, analysts say it is necessary to closely monitor these changes as NFTs are gaining attention as a new growth sector.

At around 9:03 a.m. on the 17th, Kakao Games recorded 116,000 KRW, up 6.72% from the previous day, setting a new all-time high. It broke the record set just the day before. HYBE also set a new all-time high at 421,500 KRW shortly after the market opened that day. Since surpassing the 400,000 KRW mark for the first time during trading on the 12th, it has been hitting new highs for four consecutive trading days. Wemade and Wysiwyg Studios have also recently been on a rally hitting new highs.

The commonality among these companies is that they are engaged in NFT-related businesses. At its regular shareholders' meeting in March, Kakao Games added "development and supply of blockchain-based application software" to its articles of incorporation business objectives. Recently, it announced plans to actively integrate the cryptocurrency "Bora Coin," issued by WayToBit, into games developed by its subsidiaries. Alongside this, it is also developing its own NFT marketplace.

HYBE’s strong performance and announcement of entry into the NFT business acted as positive factors. Recently, through a 500 billion KRW rights offering, it acquired a 2.48% stake in Dunamu, the operator of the cryptocurrency exchange Upbit, and announced plans to establish a joint venture to enter the NFT business. The strategy is to promote the NFT business based on intellectual property (IP) of artists such as BTS (Bangtan Sonyeondan).

Wemade is considered the "NFT leader." Since introducing an NFT-based business model in its new release "Mir4," its stock price has surged approximately 181% since the end of September. Media content company Wysiwyg Studios is also classified as an NFT-related stock and is on a streak of new highs.

Although the stock prices have surged rapidly in a short period, raising concerns about overheating, analysts say it is necessary to steadily monitor these changes as they represent a fundamental shift in business structure. Jaemin Ahn, a researcher at NH Investment & Securities, explained, "The platform and content industries are areas where various blockchain technologies can be utilized," adding, "Since money is flowing into and growth is occurring in related industries incorporating new concepts such as the metaverse, virtual reality, augmented reality, blockchain, and NFTs, it is necessary to respond quickly to these changes."