Did The NFT Boom Just Burst?
TYLER DURDEN, 03 April 2021
Non-fungible tokens, or NFTs, are changing the way we think about art (and other collectibles), and in 2021, investors have started to take notice. As Decrypt writes, in the last year, NFTs have shot to the forefront of the crypto space. The cryptographically-unique tokens make it possible to create real-world scarcity for digital objects, and artists have seized on the opportunity presented by the technology.
“It’s not meaningful to characterize a concept as a financial bubble,” said Chris Wilmer, a University of Pittsburgh academic who co-edits a blockchain research journal. Continue reading “Article: Did The NFT Boom Just Burst?”
These 2 Meme Stocks Won’t Survive the Next Stock Market Crash
Leo Sun, 26 March 2021
The Reddit-fueled short squeezes of GameStop (NYSE:GME) and other heavily shorted stocks earlier this year thrust the idea of “meme stocks” — equities that get aggressively promoted on social media platforms — into the broader market’s spotlight.
Some of those meme stocks actually have solid underlying businesses that could allow them to resist a market downturn. However, there are plenty of others with businesses that can’t possibly support their frothy valuations. Let’s take a look at two meme stocks that will likely burn their shareholders the next time the market stumbles.
1. Naked Brand
Shares of Naked Brand Group (NASDAQ:NAKD), a New Zealand-based retailer of intimate apparel and swimwear, surged from about $0.07 last October to an all-time high of $3.40 in late January. Nearly everyone who chased that rally and hung on got burned — the stock now trades at about $0.77 per share.
Naked’s rally had nothing to do with its fundamentals. It was identified as a short squeeze target on Reddit, and its name was cited in discussions about “naked shorting” — the illegal practice of shorting a stock without borrowing it first. Those discussions inexplicably evolved into a movement to promote the stock on Reddit, which caused it to rally alongside GameStop and other meme stocks in January.
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