This week the financial markets have been in flames with a high volatility in the cannabis actions that have canceled the cryptocurrency as an exchange of choice. References to cannabis in newspaper articles were almost double that of cryptocurrency. But the big falls on Friday, associated with almost unilateral gains throughout the crypt, showed how schizophrenic the weed market can be.
Tilray. When Lambo?
Tilray was the name on everyone's lips this week. On Tuesday, the Canadian company announced the approval of the DEA for the export of a cannabinoid study drug in the United States for clinical trials. TLRY shares rose from around $ 120 to nearly $ 300, as it saw $ 15 billion in volume from Monday to Thursday
The price increased because the company's market cap was only $ 16.4 billions at the end of trading. Furthermore, a single private equity fund controls over 70% of the shares, further reducing available stocks. The entire market capitalization of cannabis shares is about $ 35 billion, so investors were chasing after a very small market.
Live Fast, Die Young … in a nice pair of shorts
The famous Bitcoin bull, Mike Novogratz, wanted a piece of that action, so he managed to " take a loan, shorten it for a day of trade, make some money. "He believes that in the longer term, the marijuana industry has a promising future, but for now it's about short sales.
Listen, the weed business has a big underlying story, very similar to cryptocurrency, in five or six years we'll have a weed of monsters.
Sure enough, the drop in prices between Thursday and Friday saw Tilray close the week around the same point where it started.
More than a ripple in the Crypto waters
The second half of the week saw a rally practically in all the cryptography market, with Ripple an artist prominent. At one point he withdrew Ethereum 0 0 as the second largest currency by market capitalization, although this position reversed.
There are some who question the wave of Ripple 0 0 including Yahoo Sports which compares its position with that of Tilray, midweek. Unfortunately, the hosted video does not seem to match the title, so we're left in the dark about why Yahoo makes that comparison.
I suppose we'll just have to wait and see.
Are cannabis stocks behaving similarly to the cryptocurrency market at the moment? Share your thoughts below !
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