Some were existing companies that added dot com their name. Retail investors had FOMO just like the last 12 to 24 months.
Crypto crash could be worse than dotcom bust because nobody knows who is really hiding behind all these shitcoins, projects, foundations, etc. There are no real assets either to liquidate.
HA! Yes, good point. I remember that. I was at RU getting my MBA during those times.
I think the giveaway was him faking audio issues.
The best was KTel Records seeing their stock go from $2 to $20 in two months in 1999 because they started selling their 1950's-1970's CDs online.
I bought a biotech stock (first time / last time) years back for their patent portfolio and novel investigational therapeutics. The stock was heavily manipulated...even after news of acquisition by big pharma. At one point, the risk premium was 12%. The deal eventually closed, but the juice was not worth the squeeze.
Where is Musk during this crypto mess he helped create? Where are the tweets now? His losses will be a rounding error for his net worth but what about the 25-30 year olds that are shitting their pants?
Sucks for them. Told you guys three months ago this would happen. You get what you deserve. Still more downside on the way.
And some existing “traditional” companies were buying dot com companies with that had some revenue but no profits to try to rebrand themselves as an internet company and achieve a valuation based on multiple of revenue, which at the time was being used for dot coms. Losing strategy.
He is trying to achieve “funding secured”. Think he already had margin calls on his margin loan.
If crypto goes to hell, I hope the hodlers crucify Musk, Novogratz, Saylor, Winklevoss clowns, etc. Safe to say Satoshi Nakamoto won’t be making any appearances.
But once the news of acquisition is out there, doesn't the risk decrease significantly? Granted the deal could fall through, but if the deal goes through you know exactly what you are going to get.
Can't say I agree with including the Winklevi on this list. They started investing in Bitcoin when it was around $10. They've invested in hundreds of crypto related businesses. They have believed in the technology long before it was cool to be a cryptobro.
Those guys will have egg on their faces. But if you're a true hodl'r then you should be doing more then listening to those guys.
Yes, yes, no...in my limited experience, that sort of price action is not uncommon. There's initial profit taking, opportunity cost, and then macro conditions. If inspired, you can explore the merger arbitrage rabbit hole. Too complex for my feeble brain.
I believe Buffett brought his shares at $1,800 so I would assume that would be the bottom.
I was aware of it but didn’t want to type the entire explanation. It give me comfort to Know it’s a good value and well as your prior comment.
