Over the past few weeks, investors have been searching high and low for companies involved with non-fungible tokens (NFTs). If you’re interested in capturing some of the gains in this trend, Color Star Technology (NASDAQ:CSCW) should be on your radar and fortunately, CSCW stock is still quite affordable.
Just as a quick primer, NFTs are digital properties which are stored on a digital ledger or blockchain. NFTs can represent a stake in a broad variety of items with perceived value — something physical like a painting, photo, gem or piece of jewelry, or something non-tangible like a tweet.
NFTs are a super-hot commodity right now. For instance, The New York Times turned a technology column into an NFT and sold it in an auction for more than $500,000.
So, how is Color Star Technology connected to NFTs? We’ll get to that soon. First, though, let’s take a look back at the stock’s recent price history.
CSCW Stock at a Glance
Currently, CSCW stock is classified as a penny stock. This is defined by the U.S. Securities and Exchange Commission (SEC) as a stock that trades under $5 per share.
However, it may be possible for the bulls to get it out of penny-stock territory in 2021. We’ve seen it happen before, when the share price rose above $7 during the summer of 2018.
At the end of 2020, CSCW stock was trading at 70 cents. Even back in December, getting to $5 and beyond undoubtedly seemed like a pipe dream.
Since then, though, the outlook for CSCW has changed dramatically. The bulls took control of the price action in March of 2021. In a swift rally, they pushed the share price up to a 52-week high of $2.67 on Mar. 30.
Now, the next key levels to watch are $3.65 and, of course, the all-important $5 area. If and when the bulls blast the stock past that level, the rally in Color Star could really start to accelerate.
From Art Education to Blockchain Tech
Here’s what’s really interesting about CSCW stock, though. Until recently, the company’s primary focus was providing music education.
In fact, “lessons from the best, at your pace” is the headline on Color Star Technology’s website. But that’s not all: the company also hosts the Color International Music Festival in Asia. Apparently, Color Star and its partners host over 150 star-studded concerts each year.
So far, this might sound like a pretty good company to invest in, but nothing to write home about. Yet, Color Star Technology’s recent move into blockchain tech should grab investors’ attention.
Specifically, the company announced an agreement between a subsidiary company and Doman to provide “blockchain technology support” for Color World APP, Color Star’s “interactive entertainment platform software.”
Okay, so the press release didn’t exactly mention NFTs by name. Nevertheless, the partnership with Doman is a significant move into the blockchain.
Leaping into the NFT Market
According to the press release, the new Doman cooperation will reportedly focus on “several areas of blockchain technology, including entertainment copyright blockchain, membership management blockchain, and the development and application of interactive community blockchain.”
That alone might be considered a step in the general direction of NFTs. But then, on Mar. 30, Color Star Technology took an even bigger leap into the NFT world.
More specifically, Color Star Technology revealed that it’s “developing a non-fungible token (NFT) business for the production, release, and promotion of NFT through its wholly-owned subsidiary, Color China Entertainment.”
What kinds of objects will these NFTs represent? The answer, as indicated in the press release, is “network copyrights, concerts, artist videos, TV programs, music, museum collections, and celebrity-exclusive product designs.”
All in all, Color Star Technology says that “the convergence of entertainment content with NFT[s] is an ideal combination” and there may be merit to that claim. At the very least, though, NFTs and blockchain enthusiasts should start to take an interest in CSCW stock as the company behind it pursues these ambitious ventures.
The Takeaway
As you can see, Color Star Technology is now much more than just an art education and entertainment business.
Could the company become a major contender in the NFT space? Only time will tell. Nevertheless, CSCW stock should continue to be an interesting name for investors to follow.
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Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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