It's been two months since AMC Entertainment Holdings (AMC -9.07%) announced that you should be able to use Bitcoin (BTC -4.14%) and three other leading cryptocurrencies to buy movie tickets and snacks before the end of the year. A few weeks later it added Dogecoin (DOGE -1.45%) to the list.
However, in the five weeks since CEO Adam Aron polled his Twitter followers to see if they wanted to also have the ability to pay with Dogecoin -- and they did -- a new meme token has taken center stage. Shiba Inu (SHIB -4.72%) has become the rising star among the more speculative digital currency denominations. If AMC accepts Dogecoin late this year, shouldn't it also accept the Shiba Inu coin? It's memes all the way down.
Let's all go to the lobby
Folks have taken to Reddit, Twitter, and other social platforms to request that Shiba Inu become an acceptable bartering tool for multiplex tickets or a tub of popcorn. There are even a few Change.org petitions making the rounds urging AMC to warm up to the crypto.
It's just a matter of time before Aron puts up another Twitter poll or just flat-out announces that AMC will be accepting the rising crypto as legal tender. Aron has proven that he will go to great lengths to appear relatable to the younger traders that are among the millions of new AMC retail investors. He's donned the "meme stock" cape, and it has served him well, as AMC is topping the list of this year's biggest gainers. Why wouldn't he hop on the next hot crypto craze? Aron won't replace Dogecoin. He'll just add Shiba Inu to all-star crypto cast.
Created as a parody of Dogecoin -- using the same Japanese Shiba Inu dog as its mascot -- Shiba Inu has been soaring lately. The popularity could be coming at Dogecoin's success.
Dogecoin investors aren't exactly hurting since Aron's obvious poll results late last month. The token has risen 17% over the past month. However, that's just half of Bitcoin's 36% pop. Shiba Inu has soared more than 700% over the past month. Even on Wednesday morning -- with the general crypto market sliding -- Shiba Inu is climbing.
In the end, it may not matter what AMC accepts or not as a way to score ticket sales and concession stand purchases. It's all about traders and investors jockeying for position. They want the headlines of pairing up trendy stars on the red carpet, even if most of them are unlikely to pay with anything other than fiat currency in the real world right now.
Last month, I argued why folks are unlikely to use crypto to buy AMC tickets. Investors in Bitcoin, Dogecoin, and Shiba Inu likely want to hold on to their favorite tokens and coins to watch them appreciate over time. Going to see the new James Bond movie seems like a lame exit strategy. There's also the grim reality that using crypto for any transaction is a taxable event. The Internal Revenue Service has made that clear, and just because you're not reporting every transaction on your tax return doesn't mean that the data isn't out there for the IRS to eventually go after tax evaders.
Would you use your AMC stock to buy a ticket to see Marvel's Eternals next month? You wouldn't, because you probably think AMC will rise in value and accept that it would be a taxable event. Do you really think it's all that different with crypto? Why do you think you should be recording your cost basis if it's not to apply it to the eventual disbursement?
Can you imagine using Shiba Inu for a movie ticket a month ago instead of tapping a credit card or fumbling through your pockets for cash? You could've bought eight movie tickets with the Shiba Inu you spent! Let AMC CEO Adam Aron write his own headline. Let him announce that Shiba Inu will join Bitcoin and Dogecoin as acceptable means to buy a movie ticket later this year. Let the meme red carpet have its paparazzi moment. It doesn't mean you'll want to pay the price -- in more ways than one.