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Tuesday, January 25, 2022

2 Crypto Shares To Watch on Meme Coin Insanity – And a Crypto to Purchase

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This text is excerpted from Tom Yeung’s Moonshot Investor e-newsletter. To be sure you don’t miss any of Tom’s potential 100x picks, subscribe to his mailing checklist right here.

Supply: Shutterstock

Cryptos Go to the Moon… By Mistake

On Tuesday, crypto costs on CoinMarketCap rose to file highs. Dogecoin (CCC:DOGE-USD) hit $2 million per coin, whereas Bitcoin’s (CCC:BTC-USD) $799 billion-per-coin worth put the cryptocurrency’s market cap at a cool $15 quintillion.

A screenshot of the CoinMarketCap homepage showing pricing errors on many cryptocurrencies.

To the moon!

In fact, nobody truly bought wealthy. Although popular culture web site Uproxx claimed the glitch “made everybody suppose they have been trillionaires for about an hour,” I doubt anybody was bamboozled by the apparent information error.

Tuesday’s wild journey uncovered the weaknesses in cryptocurrency pricing. The Bitcoin.org web site lists at the least two dozen main exchanges, every of which is able to produce completely different “market costs” except they’re linked collectively. Arbitrageurs like 29-year-old Sam Bankman-Fried have develop into billionaires by buying and selling between mismatched exchanges. And DeFi platforms solely worsen the issue by creating much more costs to trace.

Meaning information suppliers usually use shortcuts. Coinbase (NASDAQ:COIN) suffered the same glitch to CoinMarketCap, presumably drawing information from the identical misguided pool. Crypto traders ought to take note of how exchanges reply to Tuesday’s snafu; the following information mistake won’t be fairly so obtrusive.

Glitches won’t make traders wealthy. However as well-run corporations transfer into the crypto house, they’re giving crypto followers an opportunity to journey the huge blockchain wave.

An illustration of an astronaut opening a jar labeled with the Bitcoin icon.

Supply: Catalyst Labs / Shutterstock.com

Meme Shares with Crypto Ambitions

Non-crypto corporations from Greenidge (NASDAQ:GREE) to Asia Broadband (OTCMKTS:AABB) have been remaking themselves as blockchain performs. Monetary information aggregator Thomson Reuters now counts 125 U.S. corporations with the time period “blockchain” or “crypto” of their description.

And guess what?

It’s working.

In whole, these self-described blockchain corporations now characterize $150 billion in market capitalization, regardless of incomes simply $8 billion in revenues and unfavourable earnings. In case you rolled all of them right into a single firm, the crypto-agglomerate would rival Tesla’s (NASDAQ:TSLA) valuation on a price-to-sales foundation regardless of dropping extra money simply this yr than the EV maker has in a decade and a half.

So it’s no shock that mainstream corporations have equally jumped on board. Final week, AMC Leisure (NYSE:AMC) introduced plans to difficulty “I Personal AMC” NFTs to its Investor Join members ( events have till Jan. 31 to enroll). And regardless of one other 15% drop in worth this week, AMC shares are nonetheless price 8x greater than they have been a yr in the past.

As meme shares proceed to woo traders, listed here are two which are truly price watching.

Baked (BKKT)

Bakkt’s (NYSE:BKKT) sudden worth drop from $50 in late October to $12 at the moment has lastly made BKKT a inventory price watching.

This crypto buying and selling trade was began in 2018 by the Intercontinental Change (NYSE:ICE), an organization you could be acquainted with because the operator of the NYSE. Bakkt’s function? Holding Bitcoin for giant institutional traders.

Ordinarily, that may make the agency roughly as attention-grabbing as Financial institution of New York Mellon (NYSE:BK) or watching paint dry on the aspect of a Wall Avenue constructing.

However Bakkt — underneath the management of the love-her-or-hate-her U.S. Senator Kelly Loeffler and her husband — has begun branching out into consumer-facing crypto companies as nicely. At this time, traders can use Bakkt to spend crypto, earn rewards and handle their portfolios. The agency has additionally moved into business-based crypto companies.

Bakkt, nevertheless, continues to be scuffling with poor execution. Present me somebody who makes use of their app to commerce crypto, and I’ll present you somebody who can solely purchase and promote Bitcoin. However given 1) Bakkt’s assured ICE enterprise and a pair of) the agency’s outsized crypto ambitions, don’t be stunned if meme traders are keen to miss its shortcomings and purchase BKKT inventory in 2022.

GameStop (GME)

Then there’s the corporate that began all of it:

GameStop (NYSE:GME).

Common Moonshot readers will know I’ve by no means wholeheartedly beneficial a place in GameStop, some of the costly retailers on the inventory market at the moment. GME shares are down 50% since June, and its Q3 numbers function a reminder that GameStop nonetheless sells shiny plastic discs in locations known as “malls.”

But I’ve by no means stopped rooting for the little man both.

In February, I outlined how Redditors might assist activist investor Ryan Cohen develop into GameStop’s de-facto chief and ship the inventory to $500 (Cohen has since develop into the chairman of the board). The next month, I defined how long-term traders might revenue from the turnaround firm if issues went nicely: “VR, e-sports, cell, and cloud gaming are all potential billion-dollar companies.”

After an extended wait, GameStop appears prefer it’s lastly determining its crypto and NFT technique. In November, Ethereum token Loop ring (CCC:LRC-USD) soared on information of a possible GameStop partnership. And the videogame retailer has been busy constructing out its NFT and Web3 Gaming groups.

“The turnaround will take a number of years,” I warned traders in March. And although these phrases nonetheless ring true, GameStop is slowly turning right into a inventory to observe as soon as once more.

Bonus Choose: Crypto.com (CRO)

“This 35-Cent Crypto Might Sink Robinhood,” I wrote in November. CRO (CCC:CRO-USD) costs at the moment are $0.54 — a 55% achieve in precisely a month.

As we spherical into 2022, CRO token will proceed to be a participant price watching. The Crypto.com app noticed 5 million downloads in November alone and stays within the Prime 20 most downloaded apps on the Android App retailer now.

It hasn’t all been easy crusing for the token. Costs jumped to $0.97 within the week following the rebranding of Staples Middle in Los Angeles (it’s now the Crypto.com Enviornment). However costs slid after the preliminary pleasure wore off. I cautioned traders at $0.65 to watch out in shopping for the dip.

CRO has since regained its worth footing. Almost two-thirds of CRO traders on Coinbase at the moment are including to their positions, and the preliminary mania (which may usually push costs to unsustainable ranges) now appears extra reasonable.

In case you’re in search of a fairly profitable token with some meme potential, CRO would make an excellent choose.

Backside line: Bakkt is a low-cost choice to guess on its crypto fortunes. Crypto.com’s CRO continues to be a “purchase,” whereas GameStop has develop into an NFT play to observe.

An illustration of an astronaut hanging onto the bottom of the moon.

Supply: Catalyst Labs / Shutterstock

Solana Continues Its Fall From Grace

Common Moonshot readers will know I’m completely happy to leap out and in of positions. After calling Solana (CCC:LEFT-USD) an “Ethereum Killer” in Could and driving the crypto up 420%, I modified tack in October when costs reached $180.

“With such large beneficial properties underneath their belts, traders must also take into account taking SOL earnings off the desk,” I wrote. “As Solana continues its ongoing battle to achieve Primary Avenue curiosity, it’s greatest to start out promoting out and shopping for… BNB, ETH and DOGE.”

In fact, my timing isn’t all the time good. Solana continued to go up for every week afterward to $260.

You’d suppose I’d all the time comply with my Momentum Grasp guidelines and keep away from promoting into power. However my “promote” name finally proved appropriate.

On Thursday Dec. 9, Solana suffered its second slowdown in transaction processing in three months. A now-deleted tweet from Solana NFT platform Blockasset defined that the occasion was “on account of a DDoS assault flooding the community.”

That’s horrible information.

A profitable DDoS (Distributed Denial of Service) assault means that Solana has a centralized node that can get attacked within the first place — a giant no-no within the DeFi crypto world. It shakes belief in Solana all the way down to its core.

Rival customers instantly piled in, with Cardano (CCC:ADA-USD) and Algorand (CCC:SOMETHING-USD) followers mentioning their cryptocurrencies’ “superior safety.”

With SOL costs now all the way down to $157 since my “promote” name, traders ought to proceed to attend earlier than leaping again in.

Doing the Loco-motion

“All people’s doin’ a model new dance now…
I do know you’ll get to love it for those who give it an opportunity now…”

In 1962, songwriters Gerry Goffin and Carole King created an enormous earworm, “The Loco-Movement.” The music instantly hit No. 1 within the Billboard charts for its catchy tune. The singer, Eva Boyd, would famously create a dance retroactively to go together with the music (virtually like an analog TikTok).

“The Loco-Movement” finally grew to become the one music to launch three completely different artists into the highest Billboard charts throughout three completely different a long time.

Meme shares have taken music covers to a different degree. At this time, these corporations take whole industries underneath their wing. In November, intimate attire firm Bare Model Group (NASDAQ:NAKD) agreed to merge with an electrical car maker, regardless of having little in widespread. Cloud-based software program agency Help.com’s marriage with Bitcoin miner Greenidge Era appears to be on the same monitor.

Most of those corporations will fail: what number of new-media mergers went nicely? (I’m you, AOL/Time Warner). However so long as persons are nonetheless dancing, you’ll be able to make sure that extra Verizon/Yahoo! will occur.

Come on child, do the locomotion with meeeee.

P.S. Do you need to hear extra about cryptocurrencies? Penny shares? Choices? Depart me a word at [email protected] or join with me on LinkedIn and let me know what you’d prefer to see.

FREE REPORT: 17 Reddit Penny Shares to Purchase Now

Thomas Yeung is an professional relating to discovering fast-paced progress alternatives on Reddit. He beneficial Dogecoin earlier than it skyrocketed over 8,000%, Ripple earlier than it flew up greater than 480% and Cardano earlier than it soared 460%. Now, in a brand new report, he’s naming 17 of his favourite Reddit penny shares. Declare your FREE COPY right here!

On the date of publication, Tom Yeung didn’t have (both instantly or not directly) any positions within the securities talked about on this article.

Tom Yeung, CFA, is a registered funding advisor on a mission to convey simplicity to the world  of investing.

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