Please ensure Javascript is enabled for purposes of website accessibility

Why WISeKey International's Shares Plunged 13.5% Today

By Travis Hoium - Apr 7, 2021 at 3:56PM

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

An NFT auction isn't as successful as hoped.

What happened 

Shares of WISeKey International (WKEY -3.21%) plunged as much as 13.5% in trading on Wednesday after a non-fungible token (NFT) auction got underwhelming results. Shares are down 12.3% at 3:20 p.m. EDT and show no signs of bouncing back. 

So what

The auction of a digital twin of the Jean-Claude Biver Bang All Black Tourbillon Chronograph "special piece" began last week and didn't get a lot of bids. According to the auction site, only three bids have been placed for the NFT today, and the auction was extended until the end of April, far longer than the original April 5 end date.

Picture of the Jean-Claude Biver Bang All Black Tourbillon Chronograph "Special piece".

Image source: WISeKey.

NFTs have been a hot topic with their blockchain security for identifying ownership, but they haven't proven to be a durable store of value yet. This auction tested that market; given the lack of interest, investors can't be impressed by the future of NFTs for watches. 

Now what

NFTs are still testing the waters in the market and haven't yet shown where they can create value. If the physical watch were included in this auction, it might be more compelling, but right now it's just the digital twin and not the actual watch that's for sale. If investors aren't interested in this digital-only asset, it may mean a potential growth market in NFTs for WISeKey isn't materializing. 

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

WISeKey International Holding AG Stock Quote
WISeKey International Holding AG
$2.41 (-3.21%) $0.08

*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 analyst team.

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 07/01/2022.

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.