Please ensure Javascript is enabled for purposes of website accessibility

NFT News Sent This Stock Exploding Today

By Bram Berkowitz - Apr 6, 2021 at 12:03PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Chinese live-streaming platform Scienjoy announced a new partnership that will allow it to enter the non-fungible token space.

What happened

Shares of Chinese live-streaming platform operator Scienjoy Holding Corp. (SJ -20.20%) were trading more than 55% higher as of 11:55 a.m. EDT Tuesday after the company announced a new strategic alliance with Snipp Interactive (SNIP.F -3.55%).

So what

Scienjoy is partnering with Snipp, which helps its corporate clients run their loyalty and rewards programs, to develop two major initiatives. The first will be a new rewards system that will enable Scienjoy broadcasters and users to earn more points on its platform, which they can then exchange for digital awards.

Scienjoy and Snipp will also explore ways to allow Scienjoy users to create their own non-fungible tokens (NFTs), which are digital files such as art, video, and audio, stored on a blockchain -- the same digital ledger technology that underpins cryptocurrencies. 

Coin with the words non-fungible token on it.

Image source: Getty Images.

The overall goal is to enable Scienjoy users to use the points they acquire through the new rewards system to purchase NFTs made from snippets of their favorite broadcasters' live-streams.

"With approximately 250 million users and 300,000 broadcasters across our ecosystem, we are well-positioned to help our partners increase their outreach efficacy," Victor He, chairman and CEO of Scienjoy, said in a statement. 

Now what

The steep gains of Scienjoy and Snipp, which was also up by more than 23% Tuesday morning, were likely fueled by the NFT news. Investors have been pouring money into NFT stocks as the market for the digital assets has exploded in recent months.

However, NFTs are a very new and risky asset class. Most NFT-related stocks have been incredibly volatile, and I would expect the same from Scienjoy, so invest with caution.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Scienjoy Holding Corporation Stock Quote
Scienjoy Holding Corporation
$2.37 (-20.20%) $0.60
Snipp Interactive Inc. Stock Quote
Snipp Interactive Inc.
$0.13 (-3.55%) $0.00

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/22/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.