Why did NFT Technologies go public amidst the market downturn, listed on NEO Exchange?

How often do you come to know about public listings of unconventional companies like NFT Technologies, listed on NEO Exchange? Not so often, perhaps, and that’s the element of surprise considering its NFT.

During market downturns like these, generally, most companies either related to crypto or NFTs or not, avoid or delay their listings on NEO exchange public exchanges. While amidst such an economically vulnerable situation in the market, the listing of NFT Technologies in Toronto’s NEO exchange came as quite a surprise. Co-founder and CEO of NFT Technologies, Mario Nawfal, believes that this time could turn out to be the best time for crypto firms to look for listings on a public exchange like NEO exchange. 

To help new investors invest in emerging tech spaces like Web 3 and NFT Technologies, the firm got listed on the NEO stock exchange in Toronto and went public on Wednesday. While listing on NEO exchange, the NFT service provider company’s valuation was about 28 million Canadian dollars, which equates to $21.8 million; however, it dropped to $17 million by the market’s closing. After listing on NEO exchange, NFT Technologies became one among few NFT companies that made such a move, and it’s the first one to do so this year. 

NFT Technologies CEO said the company has got more than enough capital, they are comfortable with the listing on NEO exchange, and everything seems cheap. He made this statement considering the current situation where an investment of about a million into any company would cost about 80% to 90% less. Even if anything goes south, NFT Technologies is in a better place. Nawfal is also hopeful that publicly listing the company on NEO exchange would let it attract more money in traditional stock markets. 

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When considering the NFT’s hype, it turns out that it has seen a drastic drop from where it was at its peak this year. According to the analysis of Google Trends data, in January, when the interest in NFTs was at its peak, it dropped by about 77% in the last five months. More or less similar data from a website keeping records of the NFT ecosystem, NonFungible, suggested that there has been a decline of 89.96% in NFTs sales since its peak in September last year. 

However, as per the data of Chainalysis, NFT marketplaces have received funds amounting to more than $37 billion from investors till now this year. This statistic brings hope that it might beat the total revenue of $40 billion spent last year if it follows the same track consistently. Another factor is unique sellers and buyers in the NFT sector here. Also, this year has been noted that more people are joining the NFT space, and it has seen growth every quarter since 2020. 

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing

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