Why WISeKey International Holding Stock Jumped as Much as 46.9% Today

What happened 

Shares of WISeKey International Holding (NASDAQ:WKEY) jumped as much as 46.9% in trading on Friday after the digital security company announced an auction of non-fungible tokens (NFTs). Shares settled lower as the day wore on and closed 6.9% higher. 

So what

WISeKey will hold an auction for what it calls “the first ever secure luxury NFT watch” on March 31, with an embedded digital certificate for the watches sold. The auction is meant to demonstrate the technology that could be used to identify ownership of an item.

NFT on a chip.

Image source: Getty Images.

This isn’t a move into cryptocurrency, per se, but it does show the company’s interest in making digital ownership certificates a viable product long term. The NFT will live on the blockchain and work with an integrated semiconductor tag to identify an item. This could be used to track the ownership of any item digitally. 

Now what

NFTs have gotten a lot of attention for the prices of digital art with NFTs, but there is a practical use for the technology. Ownership of an item can be tracked digitally with a verifiable chain as well. This is what WISeKey is trying to build with its NFT technology; if it succeeds in auctions like this, it could make WISeKey into a long-term growth stock in the security space. 

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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.

View more information: https://www.fool.com/investing/2021/03/26/why-wisekey-international-holdings-jumped-469-toda/

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