Graph Blockchain (GBLC.C) closed their all-stock acquisition of non-fungible token platform, New World, today for $6 million today, according to a press release.
This acquisition works to add further diversification to Graph’s holdings. They got into the decentralized finance (DeFi) space back in March by introducing exposure to DeFi-centric coins like Chainlink and Cardano. Now this offers a chance to get in on the ground floor with NFT, which if anything represents a natural and logical progression. Especially after you consider how long Graph spent hopping between business models trying to find enough of a foothold.
“Graph’s acquisition of New World gives us exposure to the quality art-focused NFT market, one of the fastest growing segments of the art world. NFT’s provide a new platform for artists to digitally showcase their work,” said Paul Haber, chief executive officer for Graph.
As a reminder, NFT are unique, blockchain crypto-assets used to verify ownership of a work of digital art. At least in this case. Non-fungible tokens can technically be used to verify ownership of anything they point at, but the markets haven’t figured that part out yet. Right now, they’re focused on art. It gives buyers limited rights to display said artwork, but they’re also buying the rights to a digital asset they could re-sell.
These have value for now as well. A United States-based digital artist named Mike Winkelmann unloaded a NFT photo piece called Everydays: the First 5000 Days for $69 million in March through Christie’s Auction House. This was the third highest price paid for a work done by an artist still presently drawing breath.
Here’s Reza with more details:
As for New World, they’re involved in augmented reality, but specifically focused on the intersection of the art world and non-fungible tokens. It allows content creators of all stripes, including musicians and other celebrities the access required to a distribution canvas for NFT to create and sell their digital art. This gives said artists the opportunity to reach a wider market from both a geographic and demographic standpoint, and courtesy of the blockchain, be able to continually tap into that sweet passive income through economic participation in future sales. New World has already signed on artists like Diogo Snow, who has produced pieces for celebrity clients like Drake and Fetty Wap.
When it comes to crypto and blockchain-related companies, the economic adage of rising tides raising all boats is particularly apt. The inverse is also true, as we can see with Graph’s chart. They had their little bull run, coinciding with the hype surrounding NFT and Bitcoin fortunes, but now that attention is floating away, their price is deflating.
The only question, at least for now, is whether or not they bottom out like they have in the past, or settle into a new price plateau. There’s also the question of where company’s like graph are going to be when crypto (and Bitcoin in particular) have completely settled into the post-China exodus diaspora. The odds are good that their fortunes will once again rise with BTC’s return to prominence.
For right now, though, shares have been hovering at around the $0.06 mark since June 18th.