The head of VanEck's digital assets division, Matthew Sigel, referred to the initiatives of small companies to create crypto trusts in $XRP and $SOL as likely fraudulent schemes. According to him, firms like Addentax Group or Classover, with a market capitalization of a few million dollars, claim plans to invest hundreds of millions in cryptocurrencies to artificially inflate their stock prices. These actions resemble classic 'pump and dump' schemes.
Sigel pointed out the inconsistency: companies with minimal capital cannot realistically accumulate such amounts in XRP or SOL without transparency. Analysts from Coinbase Institutional also noted that the growing popularity of corporate crypto reserves creates systemic risks for the market. Experts believe that such initiatives often exploit the hype surrounding cryptocurrencies for manipulation.
This case underscores the importance of caution when investing in cryptocurrency-related projects. Investors are advised to check the transparency and financial viability of companies. Stay updated on cryptocurrency market news and subscribe to #MiningUpdates to avoid traps!
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