NFT Shaking the Stock Market... Not a '万能' Solution

Hive, Wemade Lead NFT-Related Stocks Market
Infinite NFT Applications but Many Blind Spots
Concerns Over Original Copying and Copyright Infringement

Bangtan Sonyeondan (BTS)

[Asia Economy Reporter Minwoo Lee] While the domestic stock market is generally stagnant, stocks related to non-fungible tokens (NFTs) are on the rise. This is interpreted as a result of growing expectations that cryptocurrencies can be used as a store of value. However, since NFTs also face numerous challenges to overcome, experts warn against indiscriminate investment.

As of 9:05 a.m. on the 10th, the stock price of HYBE, the agency of idol group BTS, rose 1.93% from the previous day to 396,000 KRW. Compared to the closing price of 274,500 KRW on the 13th of last month, it surged about 44.4% in one month. This performance is 100 times the KOSPI’s increase rate of 0.46% during the same period. The news that HYBE is promoting a business to create various BTS content as NFTs through a stake exchange with Dunamu, the operator of Upbit, Korea’s largest cryptocurrency exchange, acted as a positive factor.

Game company Wemade is also a representative NFT beneficiary stock. Its closing price soared by a whopping 164.3% from last month to the previous day. This is because they applied NFTs to items in the hit new game "Mir4," implementing the concept of "play-to-earn (P2E)" where players can earn money while playing. Kakao Games and Com2uS also rose on news of pursuing NFT businesses. As market interest focuses on the scalability of NFTs, related stocks and the NFT market are explosively growing.

NFTs are blockchain-based certificates of ownership and copyright. Unlike Bitcoin, which can be exchanged, NFTs are a type of certificate of rights and cannot be exchanged for other NFTs. This is why they are called "non-fungible" tokens. Stored on the blockchain, they are difficult to forge or tamper with, and anyone can transparently verify the status of rights. They are being considered for use not only in artworks and game items but also in identity verification and certificates.

They are not万能. First, NFTs do not directly store the original asset. Although possible, high fees make it unpopular. When internet articles are turned into NFTs, only the internet address is stored. They distinguish between originals and copies but do not prevent replication, hacking, or loss of the original.

Copyright disputes may also arise. Since it is rare for the original to be stored in the NFT, if someone other than the original creator generates the NFT, copyright infringement may occur. Unlike physical originals such as paintings or sculptures, digital assets themselves can face unauthorized copying issues anytime.

Professor Seungjoo Kim of Korea University Graduate School of Information Security said, "The applications of NFTs are limitless, but concerns about a bubble are real, as the buyer of an NFT artwork sold at a record high of 69.3 million dollars in a digital art auction was confirmed to be a senior executive of an NFT investment company, a major player in virtual assets," adding, "A more cautious approach to NFTs is necessary."

This content was produced with the assistance of AI translation services.