Introduction

In March 2022, I wrote a bearish article in SA about non-fungible token (NFT) game developer Mega Matrix (New York Stock Exchange:MTMT) in which I said that interest in their first product seemed low and the company seemed overvalued.

Well, revenue in the second quarter 2022 came to just $3,200 and I expect they can be even lower in Q3 as there hasn’t been a single transaction in the NFT market on alSpace for 4 months. Considering the company’s share price has doubled since mid-August and the short loan fee rate has dropped below 7%, I think this might be a good time to open a small position. short. Let’s review.

Summary of recent developments

In case you haven’t read my previous articles on the Mega Matrix, here is a brief overview of the business…