Color Star Technology Co Ltd (NASDAQ: CSCW) is rocketing in the market this morning, but with no news released, many are wondering why the stock is screaming for the top.
The gains seem to be related to the company’s recent announcement surrounding a blockchain partnership mixed with excitement surrounding non-fungible tokens, or NFTs, going on in the market.
Here’s what’s happening:
Color Star Technology Stock Climbs on NFT Excitement
As mentioned above, investors have been going crazy about NFTs as of late. In fact, Cinedigm Corp (NASDAQ: CIDM) is flying this morning on rumors that the entertainment company may get into the NFT market.
So, it’s no surprise that another player in entertainment tech, Color Star Technology, is seeing much of the same thing. That’s especially not surprising when you consider the news released by the company last week.
In a press release last week, Color Star Technology said it signed a cooperation agreement between its wholly-owned subsidiary, Color China Entertainment Co., Ltd., and Doman (HK) Ltd.
Through the cooperation, the two will work to provide blockchain technology support for Color Star’s interactive entertainment platform software, known as Color World App.
In a statement, Mr. Luke Lu, CEO at Color Star Technology, had the following to offer:
Our Company has recently increased its development efforts in artificial intelligence, AR vision, and blockchain applications. We will not hesitate to invest in the development and testing of technologies in order to bring a brand-new experience to the future of internet entertainment. We have the courage to experiment and make progress, and already many technology companies from around the world have expressed interest in jointly developing or sharing their proven technologies with us, so that our software capabilities can be put into application earlier. I strongly believe that the future can be changed by technology, and that the application of these high-tech technologies will give the world a brand new interactive entertainment experience.
The Speculation Driving the Stock Upward Makes Sense
This cooperation agreement is a big move considering that blockchain is being touted as the way of the future, even being compared to the internet as a whole when talking about the advancements the technology could eventually lead to.
Moreover, it’s a good reason to expect that the company may decide to get into the NFT market. Keep in mind, some of these bits of data are selling for millions of dollars. With Color Star Technology already focused in the art and entertainment category, and signing a recent agreement to break ground in the blockchain space, why wouldn’t the company want to jump into highly lucrative NFTs?
All in all CSCW stock is one worth paying attention to. The company has done a great job of tackling the entertainment market in China, and now, with the company breaking into the blockchain market, the sky’s the limit.
While the idea that the company may jump into NFTs is pure speculation, it’s an interesting concept, and given what Color Star Technology does and its recent news, the speculation makes sense.