Has Luna's Shock Settled... NFT-Related Stocks Stretch Again

Seoul Auction Rises 22% in One Month
African TV and Aton See Double-Digit Gains

[Asia Economy Reporter Kwon Jae-hee] Amid the recent contraction of the non-fungible token (NFT) market due to the cryptocurrency Luna incident, NFT-related stocks are showing an upward trend. After surging on the NFT craze at the end of last year, related stocks experienced a bubble controversy and underwent corrections, resulting in a stagnant trend for some time. However, recently, NFT-related stocks have recorded an increase of more than 10% in the past month, leading to evaluations that investment sentiment may be reviving.

According to the Korea Exchange on the 10th, Seoul Auction, considered a representative stock related to NFTs, was trading at 24,700 won as of 9:53 a.m., down 1.20% from the previous trading day. Seoul Auction hit its highest price of 40,700 won on November 18 last year, then steadily declined, falling to 19,800 won in February. After successfully rebounding in March to 27,700 won, it has fluctuated and maintained a sluggish trend but has risen 22% in the past month.

Jo Eun-ae, a researcher at Ebest Investment & Securities, evaluated, "Seoul Auction’s stock price is at a price-earnings ratio (PER) of 14.8 times based on this year’s estimates, which does not reflect the growth in earnings and improvement in business conditions hidden behind the NFT theme."

Known as an art auction company, Seoul Auction announced its entry into the NFT market last November through the digital art platform 'XXBlue' to provide digital art content for the first time in the industry. In addition, it has been moving quickly to preempt the NFT market by signing a memorandum of understanding (MOU) for NFT projects with Dunamu, a cryptocurrency specialist company. Other companies considered NFT-related stocks include AfreecaTV and Aton, a software company that provides the electronic signature service 'PASS.' The stock prices of AfreecaTV and Aton have risen 12.3% and 11%, respectively, in the past month.

Han Jong-mok, a researcher at Mirae Asset Securities, analyzed, "It is true that since NFTs have been introduced to the public for less than a year and that NFTs are based on blockchain cryptocurrencies, which are risky assets, confusion and volatility are inevitable. However, considering the future 10 years from now, the general use of NFTs will not be limited to digital paintings and the like."