AMC, a leading entertainment company, has had increased enthusiasm for cryptocurrency in recent times. Its CEO Adam Aron told reporters that it could potentially create and distribute its own token. According to him, there are many reasons why AMC could successfully create and issue its cryptocurrency. He says the crypto idea is just one of the many AMC is considering at the moment.
AMC Embracing Digital Assets
While Aaron didn’t give further clarification, he is known for embracing digital assets. His support for digital assets was evident during the height of the pandemic as his company hit the meme stock status. Adam Aaron is a CEO known for his extensive social media presence. In fact, he directly interacts with his followers and even asks for advice on some business decisions.
AMC to Accept Dogecoin
In response to a Twitter poll created by its followers, AMC said it would start accepting Dogecoin for gift card payments. This is after crypto users voted a resounding “yes” to the poll that asked whether they should accept Dogecoin. Furthermore, AMC said it would start accepting other cryptocurrencies like Bitcoin, Litecoin, and Ethereum.
The movies theater chain company, which was on the brink of bankruptcy not long ago, saw a sharp rise in its stock price as it benefited from the meme stock-buying spree. Video game retailer GameStop also benefited from the same. At the time of this writing, AMC was trading lower by 0.52% at $40.53. However, its share is up by a massive 1924% compared to the same time last year.
Plans to Accept Bitcoin
Earlier this year, AMC revealed plans to start accepting Bitcoin payments for online concessions and movie tickets by the end of the year. It later added Ethereum, Bitcoin Cash, and Litecoin to the list. However, after overwhelming support for Dogecoin in a Twitter poll, the company decided to add it to the list of accepted cryptocurrencies.
As the year gets close to the end, AMC’s stock price has maintained a good momentum since its disastrous start to the year. Compared to the start of the year, AMC’s stock has gone up 1880%, trading at $40 per share. Even though it a down a few dollars for the day, it is generally performing exceptionally well.
Can AMC Navigate Regulations?
Thanks to its “meme stock” reputation, AMC has become very popular among investors. While it plans to launch its crypto, AMC could face various challenges. If it indeed launches its crypto, it will attract a lot of attention. While creating the token could be easy, issuing it in the US is currently very challenging. This is due to various restrictive regulations.
As much as AMC’s prominence and status might help it gain legitimacy, regulators might still make things difficult for them. This could be the case because they have done the same to established companies like Facebook and Telegram. Therefore, it remains to be seen how AMC will convince regulators and get the job done. If it indeed manages to deliver its cryptocurrency, AMC will be the first company of its kind to achieve this milestone.