Why NFT Play Takung Art Skyrocketed 24% Tuesday

Takung Art Co Ltd (NYSE: TKAT) soared almost 24% in the regular session on Tuesday.

What Happened: The shares of the Hong Kong-based company moved higher after it disclosed a “definitive agreement” with British Virgin Islands-based Cultural Objects Provenance Holdings Limited in a U.S. Securities and Exchange Commission filing.

Cultural Objects has a subsidiary engaged in the operation of a non-fungible token or NFT platform related to collectibles, as per the filing.

 The two firms have entered into a securities purchase agreement pursuant to which Takung shall invest in Cultural Objects through paying a purchase price that consists of $500,000 in cash and issuance of 282,000 restricted shares of common stock of Takung in exchange for 54,100 common shares of Cultural Objects.

The conditions in the agreement stipulate that Cultural Objects complete to the satisfaction of Takung — an NFT platform for primary market sales, and launch a physical exhibition/ show with sales of collectibles using Cultural Objects’ authentication technology.

See Also: Dogecoin Co-Founder's 'Capped Doge' NFT Goes For $70,000, 'Dogecoin Alpha,' Others Find Takers Too

Takung Art shares closed 23.98% in the regular session at $21.25 on Tuesday and gained another 0.85% in the after-hours session.

Why It Matters: Takung Art shares have soared 1335.8% this year. The online art trading platform's shares spiked earlier in March amid the frenzy surrounding NFTs.

Some NFT artworks have recorded sky-high valuations with Beeple selling a piece in March for $69 million.

In the same month, token sneakers sold for $3.1 million and so did the “Grumpy Cat” internet meme which fetched more than $80,000.

Read Next: Why Ethereum Co-Founder Sees More Potential In NFT Than Just A 'Casino' For Wealthy Celebs