What happened
Shares of Hall of Fame Resort & Entertainment (HOFV +0.00%) traded more than 10% lower as of 10:45 a.m. EDT after the company announced a new kind of fantasy sports league. The company also continues to be volatile from its announcement last week about jumping into the non-fungible token (NFT) space.
So what
Hall of Fame Resort & Entertainment is a company that seeks to create football-themed resort and entertainment experiences. Shares of the company have spiked recently after it announced it would begin offering NFTs.
NFTs are digital files such as art, video, audio, and other files stored on blockchain, which is the digital ledger technology that powers cryptocurrencies like Bitcoin. Some NFTs have already sold for millions of dollars.
Image source: Getty Images.
This morning, the company announced its new Hall Of Fantasy League (HOFL), a first of its kind in fantasy sports that will enable users to be stakeholders in national fantasy teams.
In the HOFL, users will be able to purchase stakes in one of 10 fantasy teams that are managed by fantasy experts. In return, users will also earn a percentage of the winnings if their fantasy team triumphs. Fans will also be able to buy and sell NFTs associated with the HOFL's unique gameplay, content, and talent.
Now what
As I wrote yesterday, I do think Hall of Fame Resort & Entertainment is doing some cool things with this new fantasy format, and its foray into NFTs.
NBA Top Shot, a platform that allows fans to buy and sell NBA NFT highlights, has seen $500 million worth of transactions exchanged through its platform.
But the stock has been so volatile lately -- jumping 80% last week on news the company would begin offering NFTs -- that it simply may be taking a breather today. Also, with NFTs such a new asset class and the market so uncertain, I'd definitely trade with caution.
