Why Hall of Fame Resort & Entertainment Stock Soared Today

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What happened 

Shares of Hall of Fame Resort & Entertainment (NASDAQ:HOFV) surged 32% Monday, fueled by excitement over its potential opportunity in the booming non-fungible token (NFT) market.

So what

Interest in NFTs has reached a fevered pitch in recent weeks. Blockchain technology makes it possible for people to own unique digital items, such as artwork, music, and video clips. Some of the most popular NFTs have sold for hundreds of thousands and even millions of dollars. 

Lights are shining on the 50-yard line of a football field.

NFL-themed NFTs could be popular among fans and investors alike. Image source: Getty Images.

Rumors have swirled in recent days that Hall of Fame Resort & Entertainment could soon make a move into NFTs. The National Football League (NFL) is reportedly developing its strategy for NFTs and other digital collectibles. Investors on Twitter and other social media sites have speculated that Hall of Fame Resort & Entertainment could be the company chosen to head up this potentially lucrative new initiative for the NFL. 

Now what 

It’s possible that these investors will be proven correct. Hall of Fame Resort & Entertainment was created via a special purpose acquisition company (SPAC) merger in July 2020. It intends to build a sprawling entertainment complex around the Pro Football Hall of Fame in Ohio — complete with stadiums, waterparks, hotels, and other attractions — leading some people to refer to it as a “Disneyland for football” fans. The company also intends to enter the gaming market, with fantasy sports and sports betting offerings. 

There could certainly be strong demand for NFL-themed NFTs. NBA Top Shot is one of the most successful NFT platforms, and fans have already spent more than $200 million on NBA-related digital collectibles. Football is even more popular than the NBA, and if the NFL does choose Hall of Fame Resort & Entertainment to head up its NFT initiative, it could be a boon for the company.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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