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Source: whiteMocca, Shutterstock
Summary
- Color Star’s deal with Doman is leading to speculations that the company will get into the NFT space.
- Both the companies will explore different areas of blockchain technology which includes entertainment copyright blockchain.
- In February 2021, the company announced its ambitious plans of further exploring Artificial intelligence and other technologies.
In a surprising development, the stocks of Chinese company Color Star Technology Co. Ltd. (NASDAQ: CSCW, CSCW: US) rallied on Wednesday. Although Color Star has not made any official announcement yet, the stock surged due to non-fungible token (NFT) speculations.
The company's stock was up 22.41 per cent at US$1.42 apiece at market close on March 24.
The company, which is into education technology, gained momentum during the pandemic as the online education sector went into an overdrive. Over the past year, Color Star has evolved itself into a digital entertainment company and recently it announced a deal with Doman (HK) Ltd.
What is the deal about?
Color Star's subsidiary company stuck a deal with Hong Kong-based Doman, which provides blockchain technology to several companies across the world. Both the companies will explore different areas of blockchain technology which includes entertainment copyright blockchain.
Source: Pixabay
This agreement is leading to speculations that the company will get into the NFT space.
NFTs or non-fungible tokens are verifiable digital or cryptocurrency assets. They represent a wide range of things such as digital art, music and other collectables. It uses the blockchain for identifying its authenticity and can't be duplicated.
Last month, Mike Winkelmann, popularly known as Beeple, made headlines when he sold his digital art or NFT for 69 million dollars.
The company in its press release stated that people could use the copyright trading platform of Color Star APP to share and trade their digital work of arts and other intellectual property on the blockchain. Since its launch in September 2020, Color Star APP has achieved a user base of at least one million.
Focusing on artificial intelligence and other technologies
In February 2021, the company announced its ambitious plans of further exploring Artificial Intelligence (AI), Augmented Reality (AR) and Mixed Reality (MR) technologies. Color Star wants to develop virtual communities for its software applications. For this purpose, it also raised US$ 26 million by pricing its shares at US$ 1.30 apiece.
Stocks of Color Star Technology Co. Ltd. (NASDAQ: CSCW, CSCW: US)
While the company will get into the NFT space is mere speculation, its stock is still worth paying attention to. The company's stock grew 74 per cent in a year and 115 per cent year-to-date.
©Kalkine Group 2021
It has a market cap of US$ 89 million and holds a price-to-book ratio of 12.9. In its annual report, the company reported it had cash equivalents of US$ 0.99 million, up by almost 210 per cent year-over-year (YoY).
The company also managed to narrow down its net loss to US$ 11.63 million from US$ 14.39 million YoY.
