$HWAL Under-the-Radar NFT Star in the Making?
The NFT marketplace has taken the world by storm in 2021. We make the case here that the maturation of the NFT concept and marketplace could be a game-changing catalyst that unlocks enormous value for Hollywall Entertainment Inc (OTCMKTS:HWAL).
First off, it’s important to understand how NFTs work and what implications flow from their increasing relevance
A non-fungible token, or NFT, is a unit of data stored on a blockchain that certifies the uniqueness of a digital asset. By purchasing an NFT associated with a digital asset, one becomes the owner of that digital asset because the NFT represents rights to its value, in theory, even though the asset itself can be freely viewed and shared by others without recourse to the owner of the NFT associated with the asset.
A good analogy is to imagine something like the Mona Lisa painting hanging in the Louvre in Paris. There’s only one original Mona Lisa. It was painted by Leonardo da Vinci sometime in the early sixteenth century, likely between the years of 1503 and 1517.
Nonetheless, anyone can go and see it. You can take a picture of it on your iPhone and look at it in detail at home. You can buy a print of it for $20. There are millions of images of it online, each displaying it in striking detail and beauty.
But there’s only one legal owner – in this case, that owner is the French Republic after being acquired by King Francis I of France after it was completed by da Vinci.
So it goes in the NFT market.
Drilling Down: The Investment Opportunity
An NFT can be associated with just about anything – a piece of content, a song, a picture, a highlight, a video clip, a tweet, or any other piece of digital information that may have cultural value.
Major NFT marketplaces such as Rarible and Opensea have seen sales rise between 50-fold to 100-fold in the past three months. Leading venture capital firms have started to fund new platforms, and more platforms are anticipated. In first quarter of 2021, the combined market cap of major NFT projects has expanded 1,785%, according to Forbes.com.
The big point now is that the NFT market is finally gaining legitimacy and traction. That suggests it may be laying a foundation for the conceptual underpinnings of something akin to ‘internet real estate’.
The content universe finally may have a legally and financially workable concept of Property, which creates potentially trillions of dollars of value and may become one of the most important trends shaping our financial future for literally decades to come.
Hence, we are starting to see a new group of interesting stocks emerge as the first movers in this space, including Plby Group Inc (NASDAQ:PLBY), Leaf Group Ltd (NYSE:LEAF), Oriental Culture Holding Ltd (NASDAQ:OCG), Takung Art Co Ltd (NYSEAMERICAN:TKAT), and Mudrick Capital Acquisition CorporatinII (NASDAQ:MUDS).
The last one in that list is a SPAC that hasn’t yet been renamed following its acquisition. It is actually the Topps trading card company, and now features Michael Eisner as CEO. The first one is Playboy – also a recent SPAC – and you can imagine the cultural significance of its library of content. There will no doubt be other similar names SPACked into the public market realm as the NFT concept gains steam.
However, today, we would like to make the case that one such opportunity may be trading on the OTC already: Hollywall Entertainment Inc (OTCMKTS:HWAL).
Unlocking Iconic Cultural Value
All of that brings us back to Hollywall Entertainment Inc (OTCMKTS:HWAL), which holds rights to a collection of cultural assets that you can think of as something like a shack full of fireworks, and the NFT revolution could be something like a lit match.
In short, HWAL has the distinction of owning the rights, both exclusive and non-exclusive, to a treasure trove of music.
The company’s library was recently valued at nearly $150 million and includes the rights to manufacture and distribute over 17,500 master recordings performed by such legends as Ray Charles, Ella Fitzgerald, The Jackson 5, Frank Sinatra, Dolly Parton, Elvis Presley, Tony Bennett, The Bee Gees, Chicago, Platters, George Gershwin, Marvin Gaye, James Brown, Nat King Cole, John Lee Hooker, Willie Nelson, Rod Stewart, Hall and Oates, James Taylor, Etta James, Aretha Franklin and many other multiple platinum selling acts.
Hollywall Music Library has been preserved for over 20 years and contains some of the rarest and most coveted unpublished recordings from countless Legendary Music Recording Artists.
The company is now taking this further and developing a one-of-a-kind, state of the art, digital distribution and verification system- designed to maximize customer delivery, quality control, and revenues for artists, writers, content developers, copyright owners and shareholders.
The company believes the Hollywall Music’s digital distribution and verification system is revolutionary and will change how the media and entertainment industries conduct their businesses in the future. The HW Network distributes music from the Hollywall Music Library, as well as other available music, film, and video libraries to consumers worldwide.
The NFT concept is a game changer for HWAL because it not only presents a means to monetize its iconic library of content, but to also seat its verification and distribution plans in an established technological context that has credibility and legitimacy across industries and consumers.
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