According to a recent post by Bloomberg, Tilray Inc., a pharmaceutical company working towards the development of cannabis-based products, recently shocked the cryptocurrency industry. The Canadian firm that went public in the month of July 2018 witnessed its stocks shoot-up by more than 1000%.
Some of the analysts and investors in the market opined that the spike in cannabis stocks might meet the same fate as that of the cryptocurrency counterparts.
According to the report, the companies which rebranded itself as a cryptocurrency or blockchain company saw a similar increase in the price of their shares. However, the good news did not last long as the majority of the stocks dropped along with the Bitcoin [BTC] price drop. The report stated that Long Blockchain Inc. lost 90% of its value within 75 days of trading after Bitcoin’s fall.
Riot Blockchain Inc. was one of those companies where the stock shares surged by 400%. This was after the former machinery maker for the biotech industry had changed its name from Bioptix Inc.
Reportedly, more than $6.5 billion worth of Tilray stocks were traded on the U.S. stock exchanges. This marked it as the second highest followed by Amazon.com’s $7.6 billion stock trade, almost 47 times the size of Tilray Inc. The weed company has a market valuation of $20 billion. When the market closed, the company had performed better than 40% of the S&P 500 companies.
Elie Jeanlouis, a cryptocurrency evangelist tweeted:
“Old money thinks crypto is dead but forgets the money they use have cryptic serials # on it. Paper is dead. We are already live in the digital age. The problem is that our old money way is too slow. Crypto speeds it up & provides better security”
According to a few research analysts, the money invested in cryptocurrency markets are now being used in the cannabis industry. Jeffrey Van de Leemput, founder of investment education platform Cryptocampus opined:
“Crypto traders I know are getting into pot stocks….But I don’t know if that’s a pattern or just coincidence.”
Letsgetittox posted on Twitter:
“ohhh see…so the plan is to get the younger generation to pump the pot stocks. Lol you’re forgetting that crypto was so enticing because of the tales of 1000x and new tech”
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