Shares of WISeKey International (NASDAQ:WKEY) 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.
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.
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.
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.