- The stock price of Color Star Technology Co Ltd (NASDAQ: CSCW) has increased by over 40% pre-market. This is why it happened.
The stock price of Color Star Technology Co Ltd (NASDAQ: CSCW) has increased by over 40% pre-market. It appears that there are two catalysts driving up the stock price: cryptocurrency and non-fungible token (NFT) play. The price of bitcoin (the cryptocurrency exchanged on a peer-to-peer network and transactions are recorded in a public distributed ledger called a blockchain) has been going up today.
Last week, Color Star Technology had announced the signing of a cooperation agreement between its wholly-owned subsidiary Color China Entertainment Co., Ltd. and Doman (HK) Ltd.. The cooperation is going to provide blockchain technology support for Color Star’s interactive entertainment platform software, known as Color World APP.
Doman is a Hong Kong-based company that provides blockchain technology to many enterprises around the world, addressing issues in computing and internet management. And the cooperation between Color China and Doman will focus on several areas of blockchain technology, including entertainment copyright blockchain, membership management blockchain, and the development and application of interactive community blockchain.
There is also speculation that Color Star Technology has the potential to get into the NFT space in the future. Last month, the company said it will be using the proceeds from a private placement of $26 million at a price of $1.30 toward the development of Artificial Intelligence (AI), Augmented Reality (AR), and Mixed Reality (MR) technologies to create virtual communities for the Color Star APP. These are the same types of technologies that could be used for designing NFT-based products.
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Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.