What happened
Shares of Hall of Fame Entertainment & Resort (HOFV +0.00%) were giving up 8% in late afternoon trading Friday after the football-oriented resort, entertainment, and media company had been down as much as 13% on the day.
So what
While there was no news to seemingly trigger the decline, Hall of Fame's stock had spiked after the market's close on Thursday following its CEO's live interview on YouTube with the financial news website Benzinga.
That, of course, followed a wild surge in Hall of Fame's stock the day prior when it announced a partnership with Dolphin Entertainment, an entertainment marketing firm, to create non-fungible tokens (NFTs) for NFL fans.
Image source: Getty Images.
Now what
NFTs are the trendy, new digital asset -- especially in the sports world -- that uses blockchain technology to record ownership and prevent duplication. Think of it as a crypto collectible. Each NFT independently accrues value apart from other NFTs.
CNBC reports NBA Top Shot, an NFT platform recording individual sports moments, said a LeBron James slam dunk was recently acquired for $208,000. If people are willing to pay that kind of money for something that can be watched on any replay show of the game, then Hall of Fame's NFTs could be worth something.
Yet CNBC also reports spending on NFTs is volatile, and that may account for Hall of Fame's dip today, especially if people decide that a license to own rights to the digital image of a widely available sports moment really isn't worth as much as they once thought.
