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Cryptocurrency

AMC shares soar as judge rejects APE deal in surprise ruling

Shares in AMC Entertainment Holdings surged on Tuesday, after a judge denied the company’s partnership deal with cryptocurrency APE. Judge James Donato said the deal, which would have allowed AMC to receive a portion of the proceeds from APE’s token sale, was an “illegal gamble”.

The ruling is a blow to the cryptocurrency industry and could reshape the relationship between cryptocurrencies and traditional financial institutions.

AMC shares opened up more than 20% on Tuesday, but later gave back some of those gains. The stock is currently trading up more than 10% at $14.50.

APE is a cryptocurrency created by Yuga Labs. Yuga Labs is the creator of Bored Ape Yacht Club, Mutant Ape Yacht Club and other popular NFT collections.

The deal would have allowed AMC to receive a portion of the proceeds from APE’s token sale. AMC would have used the proceeds to build new theatres, expand its digital platforms and develop NFTs.

However, Judge Donato said the deal was an “illegal gamble”. Donato said the deal would have exposed AMC to too much risk from APE’s success and could have led to bankruptcy.

The ruling comes as a blow to the cryptocurrency industry. Cryptocurrencies have become increasingly popular in recent years, but they are still largely unregulated by regulators.

The ruling could reshape the relationship between cryptocurrencies and traditional financial institutions. Cryptocurrencies may become less acceptable to traditional financial institutions, which could slow the growth of the cryptocurrency industry.

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