The parent company of Moviepass trades, for the time being, under the share ticker HMNY. Their game was to provide, for a fixed low fee, unlimited service. Perhaps they talked the theaters into allowing this in order to make bank on the $7 coke and the $12 popcorn scam that all movie theaters use. But people who go to a lot of movies do not buy the popcorn and soda there; they either load up before the show or sneak some canned drinks and candy in. In other words, you can't get cheapskates to go to a free show and then spend 5x of what the show is worth on junk food. The people who buy the pricey junk food are the occasional movie goers who are there for the experience, are on a date, etc. In other words, they are not there to cheap out and they just don't do it often enough to matter.
In any case moviepass was a joke of a business, like many other something for nothing ventures that still exist today. And now its share price is rapidly approaching zero. This was an obvious Wall St. pump and dump. I bet if you look hard enough you could find a written business plan that says "scam in a bunch of investor money on something that seems too good to be true and in fact is too good to be true and then sell into the exponential part of the 5th wave."
What a complete scam. But if this is a scam, what about Amazon, Facebook, Twitter, etc.? They are also paper assets and they will also suffer similar fates in the fullness of time.
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