NFT News sent this stock to explode today

What happened

Actions of the Chinese operator of live broadcasting platform Scienjoy Holding Corp. (NASDAQ: SJ) were trading over 55% higher at 11:55 a.m. EDT Tuesday after the company announced a new strategic alliance with Interactive snipp (OTC: SNIP.F).

So what

Scienjoy is teaming up with Snipp, which supports its client companies in the management of their loyalty and rewards programs, to develop two major initiatives. The first will be a new rewards system that will allow Scienjoy broadcasters and users to earn more points on its platform, which they can then redeem for digital rewards.

Scienjoy and Snipp will also explore ways to enable Scienjoy users to create their own non-fungible tokens (NFTs), which are digital files such as art, video, and audio, stored on a blockchain – the same digital ledger technology that underlies cryptocurrencies.

Image source: Getty Images.

The overall goal is to allow Scienjoy users to use the points they earn through the new rewards system to purchase NFTs made from snippets of live streams from their favorite broadcasters.

“With approximately 250 million users and 300,000 broadcasters in our ecosystem, we are well positioned to help our partners increase their outreach effectiveness,” said Victor He, chairman and CEO of Scienjoy, in a statement.

Now what

The big gains from Scienjoy and Snipp, which were also up over 23% on Tuesday morning, were likely fueled by news from the NFT. Investors were put money in NFT shares as the digital asset market has exploded in recent months.

However, NFTs are a very new and risky asset class. Most of the NFT related stocks have been incredibly volatile, and I would expect the same from Scienjoy, so invest with caution.

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Bram berkowitz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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