Is The NFT Gaming Company Inc. IPO a Good Buy?

Easily symbolizing one of the most contentious yet promising investment sectors, the cryptocurrency sector took market participants on a wild ride in 2021. Following a rapid erosion of value last year, the segment looks again to bounce higher in 2023. If so, the broader narrative may bode well for The NFT Gaming Company Inc., which will soon make its public market debut.

A blockchain-powered video gaming ecosystem, The NFT Gaming Company ultimately aims to familiarize and mainstream the concept of non-fungible tokens (NFTs). Similar to the most popular cryptos available, an NFT fundamentally distinguishes itself with a unique signature. In many ways, an NFT is akin to a numbered, limited-edition baseball card. Owners of NFTs enjoy a digital property separate from every other asset.

This unique signature carries strong implications for broader gaming-related initiatives. Under the NFT gaming umbrella, users who sign onto the ecosystem receive an avatar or account. As users progress through the gaming environment, their core statistics are recorded. In addition, NFT-empowered technologies facilitate in-game rewards and purchases, such as apparel and equipment for their digital characters.

Although the NFT market commands great interest and possible utility, it remains largely a frontier market. Such opportunities typically carry stratospheric upside potential because of their pioneering nature. At the same time, with no point of reference for frontier enterprises, the risks impose a worrisome cloud over all but the most hardened market gamblers.

Below are the key factors to consider regarding The NFT Gaming Company’s debut.

What Does The NFT Gaming Company Do?

According to its Form S-1 disclosure filed with the U.S. Securities and Exchange Commission (SEC), The NFT Gaming Company focuses on developing a digital gaming platform that will offer its proprietary games as well as games developed and published by third parties.

Its vision “is to develop, design, acquire and manage conventional digital games and to combine them with novel methods, such as the ability to create and mint unique in-game features, such as skins, characters, weapons, gear, in the form of non-fungible tokens, or ‘NFTs,’ that will allow users to have unique experiences and more control over in-game assets.”

NFT Gaming states that it will initially launch its own proprietary games, emphasizing simplicity and intuitiveness. In addition, the company will allow gamers to “mint their own affordable NFTs within the Platform, with unique and exclusive features, that can be utilized across the network of games and Platform that we plan to build.”

Through the use of NFTs, a video game platform commands significant advantages. Most notably, the unique, cryptographic token residing in the underlying blockchain architecture cannot be edited or deleted. The blockchain inherently fosters public transparency, thus enabling fair play and ethical conduct throughout the gaming ecosystem.

In addition, the various uses and applications of NFTs empower NFT Gaming to branch out to other business segments. Some of the uses include art, music and virtual real estate (i.e. the metaverse).

To achieve its ambitions, NFT Gaming developed a platform called Gaxos, which brings together gamers, developers and publishers. As Gaxos matures, the company will include compelling titles covering multiple genres, such as role-playing games (RPGs), sports, simulation, puzzles, action-adventures and first-person shooter (FPS) experiences.

When is the Date for The NFT Gaming Company IPO?

Those interested in buying up shares of The NFT Gaming Company will need to quickly ascertain whether the investment is right for them. Barring unusual circumstances, the company’s initial public offering (IPO) – or the first time a private enterprise distributes its equity shares to retail (public) investors – is scheduled for Feb. 15, 2023.

Based in Roseland, New Jersey, NFT Gaming plans to raise $7 million by offering 1.7 million shares at a per-share price of $4.15, according to Renaissance Capital. At these proposed terms, the blockchain gaming enterprise will command a market capitalization of $50 million.

The company plans to list its shares on the Nasdaq exchange under the ticker symbol NFTG. Originally, NFT Gaming filed its IPO prospectus confidentially on March 31, 2022. EF Hutton represents the sole bookrunner for the deal.

Fundamentally, the timing of NFT Gaming’s public market debut presents opportunities and challenges. Optimistically, circumstances appear much more fortuitous for new listings, especially those associated with risk-on enterprises (like NFTG stock). As the World Economic Forum remarked, the IPO calendar plummeted last year.

One particular problem at the time was uncertainty. Inherently the bane of any new listing, the addition of fresh macroeconomic variables – most conspicuously skyrocketing inflation and Russia’s invasion of Ukraine – obliterated risk-on sentiment. However, with the pace of inflation decelerating significantly, optimism returns under the notion that eventually, the Federal Reserve will ease up on its monetary tightening campaign.

Still, recent events confirm that nothing can be taken for granted in the post-pandemic new normal. As Benzinga pointed out, the latest Consumer Price Index (CPI) report came in a bit higher than expected, a 6.4% year-over-year increase as opposed to the expected 6.2% lift.

While it wasn’t the most devastating disclosure, the CPI indicated that while inflation might not be as relentless as it was in 2022, it remains obstinately elevated. Therefore, it’s not out of the question for the Fed to continue raising rates, which then invokes recession risks. Naturally, a downturn probably won’t augur well for NFTG stock.

What Analysts are Saying About The NFT Gaming Company IPO

As a nano-capitalization play with limited public awareness, retail investors will unfortunately not find robust analyses regarding NFTG stock. The upside opportunity and the downside risk factor can be summarized as the struggle between economic rationalization and the demand quotient.

Primarily, the bullish narrative undergirding NFTG stock doesn’t really center on the games themselves but rather on the potential facilitation of a legitimate, self-contained economic ecosystem. The blockchain architecture solves the infinite duplication dilemma associated with rudimentary digital tokens. That is, outside of the blockchain, nothing prevents a token creator from copying and duplicating countless underlying units.

However, under a typical blockchain network, programmers initially integrate the protocols covering coin or token supply dynamics. The creation of new units requires consensus among participating nodes (network-connected computers) and some cost or sacrifice. Prior to the innovation of proof of stake, first-generation proof-of-work protocols required the expenditure of energy through the execution of complex algorithms as a competitive matrix.

Ultimately, the cost of coin or token creation imbued the underlying digital assets with an aura of rarity and therefore value. Thus, NFTG stock may rise if market participants perceive the utility of NFT Gaming’s entertainment platform.

However, rarity alone does not necessarily catalyze value. In order for a cryptocurrency or NFT to garner a non-zero valuation, a party must be willing to materialize its worth. As well, the counterparty must be willing to part with the underlying asset at the offered price for a market to exist. Still, with tens of thousands of crypto projects available for investment, all upstart blockchain enterprises risk irrelevance.

It’s vital that prospective investors of NFTG stock understand the incredible volatility associated with publicly traded blockchain enterprises. For instance, in the trailing year, blockchain hardware manufacturer Canaan Inc. (NASDAQ: CAN) suffered a 47% loss of equity value. During the same period, crypto-mining firm Marathon Digital Holdings Inc. (NASDAQ: MARA) suffered a staggering loss of over 76%.

Therefore, it’s absolutely vital that interested speculators conduct careful due diligence before participating in NFT Gaming’s IPO.

The NFT Gaming Company Financial History

Unfortunately, with NFT Gaming filing its Form S-1 on Oct. 14, 2022, not much recent data is available for analysis. However, the biggest concern for the blockchain entertainment enterprise centers on revenue. To put it another way, NFTG stock represents almost a purely aspirational investment.

Management performs a solid job of keeping expenses in check (given disclosed data). For instance, between Oct. 27, 2021, to Dec. 31, 2021, NFT Gaming posted a net loss of $12,255.

Also, on the balance sheet (at end of 2021), the blockchain firm represents a cash-rich enterprise, commanding $2.08 million in currency against total liabilities of only $8,736. Should management continue to maintain fiscal discipline, it could lend some credibility to NFTG stock.

The NFT Gaming Company Potential

Frankly, the upside potential for NFTG stock may come down to the incredible enthusiasm for which the broader crypto sector garnered a notable (and notorious) reputation. At any moment, for any reason, a crypto project can skyrocket. Therefore, it would be wrong to classify NFTG stock as utterly hopeless.

Nevertheless, cryptocurrencies represent the Wild West of the global capital markets. Devastating losses may materialize within seconds, making NFTG stock appropriate only for hardened gamblers.

Where to Buy NFTG IPO Stock

If you want to participate in NFT Gaming’s IPO, you’ll need to know how to buy stocks. But before you take that step, you must sign up for a brokerage account. Below is a list of the best brokers to consider.

NFTG Restrictions for Retail Investors

Review the Financial Industry Regulatory Authority (FINRA) rules on restricted persons before participating in an IPO. Don’t engage if you have privileged information.

NFTG Pre-IPO

As a modestly sized (and imminent) offering, no pre-IPO opportunity is available for NFTG stock. However, investors interested in wagering on companies on the ground floor of their public transition can open an account with ClickIPO.com.