A new cryptocurrency nearing an April 30 launch is gaining stream and mentions on social media thanks to its name being close to that of publicly traded AMC Entertainment Holdings (NYSE: AMC).
What Happened: A new cryptocurrency called The AMC Token (CRYPTO: TAMC) is planning a launch on April 30 and is using the AMC movie theater chain name to likely entice people to buy the coin.
AMC has not announced the coin and has not indicated any connection to the Ethereum-based (CRYPTO: ETH) token. AMC CEO Adam Aron, who is pretty transparent with investors, has also not mentioned the token on his Twitter (NYSE:TWTR) or follow the official account of The AMC Token.
Instead, developers of the coin say it is “inspired by GME and AMC movement,” and using the name of the movie theater chain.
The AMC Token is offering a fair launch, with price discovery set by demand and supply. The token will have no pre-sale or whitelist before the fair launch is completed.
The token is also called The Apes Movement Community Token in the press release that went out across several major financial media sites as a Globe Newswire release.
“TAMC is proud to be the first token created to generate wealth for the holders by the social/meme coin status and expose the malpractices done in the financial systems nowadays for the benefit of a few,” the release reads.
TAMC will have a max supply of 513,960,784 tokens.
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Why It’s Important: AMC Entertainment was one of the most popular stocks of 2021 and attracted a wide base of followers and community members who often referred to themselves as apes.
The AMC Token is attempting to capitalize on the community by misleading that it is associated with the movie theater giant.
The coin makes promises of going to the moon and has sponsored posts on other websites promising 10x, 100x and 1000x returns from the coin.
The official Twitter account of The AMC Token dates back to November 2021 and previously shared and retweeted on other tokens before switching gears to The AMC Token posts in February 2022.
Many tokens and coins have tried to piggyback off of other's success by launching tokens that often end up being rugpulls where the founders of the token make the money and the rug is pulled out on the new owners. Some tokens allow users to buy and then never to sell their coins.
Over the last year, the cryptocurrency market has seen a Squid Game coin based on the popular Netflix Inc (NASDAQ: NASDAQ:NFLX) series and a Will Smith slap inspired coin Will Smith Inu. These tokens often shoot up in value only to fall back down.
Another token called Accept Crypto, launched by Dogecoin (CRYPTO: DOGE) influencer Matt Wallace, attempted to capitalize on the strong Dogecoin community and the rallying cry for retailers to accept Dogecoin as payment. The token shot up in value only to come crashing down.
Investors should be cautious about getting into new tokens that do not have a proven track record, and risk only what they are willing to lose.
Benzinga reached out to AMC for comment on the token.
Photo: Courtesy of samantha celera and Richard Patterson on Flickr
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