As an investor he applied the lessons from the frenzy of meme stocks to blockchain and NFT

Almost two years ago, during the first winter of the COVID pandemic, Roman Tirone approached the world of meme stocks.

“I think some friends contacted me and I took a look,” the New York-based investor told CNET. “There was a strong community that was confident enough that it would drive the stock up.”

Those were really intoxicating days for the dear AMC Entertainment Holdings Inc. AMC stock meme,
+ 1.54%
as investors pushed the stock to a high of $ 72.62 on June 2, 2021. AMC closed at $ 18.21 on Wednesday, well below its 52-week high of $ 52.79, which hit the September 13, 2021. Game Stop Corp .GME,
+ 1.94%
it rose to a 52-week high of $ 63.92 on November 3, 2021, but ended the session on Wednesday at $ 37.93.

Taken by the momentum of the meme stock community, Tirone made significant investments in AMC and Game Stop. “At first everything was great, then things started to get worse,” he told GameSpot.

See now: AMC may have been a treasure trove of meme titles, but weakness in some key areas has put the company on shaky ground

However, he was able to apply what he learned elsewhere. “I ended up taking what I learned about digital communities, online investing and new speculative assets and applied it to blockchain and NFT investments,” he said.

An NFT, or non-fungible token, is a unique digital asset that leverages blockchain technology to verify ownership or exchange tokens. An increasing number of companies are getting involved in NFTs. eBay Inc. EBAY,
for example, it recently launched its first collection of NFT, which features animations of athletes from the covers of Sports Illustrated.

Blockchain, which has become popular in recent years, is a decentralized digital ledger of transactions. The technology is used to support cryptocurrencies such as bitcoin.

“I’ve learned a lot about how to read momentum, understand how and when a community is a signal, both good and bad, and how generally there are levels within a community … whether it’s someone who is an investor for a lifetime or someone who is just passing through, ”added Tirone.“ You can’t get caught up in the inner fervor of other people’s ideas when it comes to investing. ”

After applying what he saw in the meme stock world, Tirone now describes himself as an NFT collector. Specifically, Tirone focuses on NFT collectibles, art and Play-2-Earn games, where players are rewarded with NFT or cryptocurrency.

The market for NFTs, or non-fungible tokens, has exploded in recent years, but this year has somewhat cooled due to the cryptocurrency crash.

See now: AMC “squeezable”, GameStop shares hit multi-month highs

However, Tirone says his move to blockchain and NFT investing has “changed his life”.

Despite the orientation towards a new investment strategy, the investor maintains a small position in AMC. “I still have some AMC: it’s a small part of what I originally owned,” he told GameSpot. “It’s more of a symbol for the cause at this point.”

The cause, Tirone explained, has to do with the little guy. “At the highest level, it’s a losing story where people who lose usually have a chance to win,” he said.

Bespoke Investment Group analyst George Pearkes told CNET that massive bullish volatility in meme stocks is clearly manifesting. However, he called the meme headlines “stickier in the releases” with some investors unwilling to drop them. “The inflows come really big and very fast, and then the outflows flow,” Pearkes said.

See now: Here’s the little-known reason Cathie Wood’s ARK Innovation ETF is experiencing such a bad year

To illustrate his point, Pearkes pointed to the “difficult journey” that the ARK Innovation ETF ARKK,
has been underway since its peak in 2021, noting that some investors are still determined to own the ETF. “It’s pretty standard investor behavior and I think it applies to meme stocks as well,” she said.

ARK’s innovation ETF fell 48.7% year to date. AMC shares fell 33% in 2022 and Game Stop was up 2.2%. The S&P 500 SPX Index,
it is down by 12.8% in the same period.

AMC reports second quarter results after the market close on Thursday.

Leave a Comment