🔴 First, let’s explain the background.
Yesterday, one of BNB's stocks, Winttree Company (stock code WINT), was requested to delist by Nasdaq due to its stock price remaining below $1 for too long, failing to meet the minimum closing price maintenance standard.
$WINT's stock price dropped by 78% yesterday, causing retail investors holding this stock to suffer significant losses.
✅ Winttree was originally a biopharmaceutical company that officially announced the establishment of the BNB treasury on July 17, transforming into the 'Microstrategy' company for BNB.
The operating model involves a company called Build & Build Corp investing $60 million into Winttree to purchase BNB and become a treasury for BNB, and before the transaction is completed, it can choose to increase the investment to a total of up to $200 million, all of which will be used to purchase BNB in the future. Correspondingly, the publicly listed Winttree Company will also issue new shares to sell to this investor, with a maximum possible issuance of 260 million shares (200 million conversion shares + 66 million warrant shares);
Before the above transactions began, Winttree Company's market value was less than $5 million. That night after the announcement, the price of $WINT stock rose by 30%, and neither Binance nor CZ commented on it.
✅ The second BNB stock, Vape, has officially announced the establishment of the BNB treasury.
On July 28, Nasdaq-listed Vape also officially announced the establishment of the BNB treasury, led by @10XCapitalUSA, in collaboration with YZLabs, planning to create the world's largest listed $BNB exclusive reserve company through a $500 million private placement, and has received support from top institutions such as Pantera Capital.
Subsequently, the two funds, 10X Capital USA and YZLabs, along with other private equity institutions, announced their respective funding commitments. After the completion of the above transaction on July 31, Vape Company was renamed CEA Industries (stock code BNC).
In this transaction, the participation of Binance's affiliated fund YZlabs gave an endorsement to BNC's 'official BNB stock'. In contrast, Winttree Company's announcement to establish the BNB treasury was completely a unilateral seeking support.
✅ After the Vape announcement, investors who originally held WINT stocks rushed to sell and buy $BNC, causing the price of $WINT to drop below $1.
✅ Today is not the first time Winttree Company has received a delisting notice from Nasdaq; a quick Google search shows that there were announcements of Winttree’s delisting in June this year and December last year.
🔴 Conclusions that can be drawn from the above clues:
✅ Any US or Hong Kong listed company can announce how much money it invests to establish a treasury for a certain cryptocurrency. This is because cryptocurrencies are decentralized and issued on public chains; as long as there is a pool of liquidity trading pairs, anyone or institution can freely trade, accumulate on DEX (Decentralized Exchanges), or trade on CEX (Centralized Exchanges) where this token is listed.
✅ The stocks of the two mainstream cryptocurrencies, Bitcoin and Ethereum, have seen good price increases, besides the well-known Microstrategy and BTMN, there are many other listed companies doing well.
✅ Apart from the stocks of Bitcoin and Ethereum, other altcoin stocks have seen price fluctuations after announcements.
✅ Unless the support of the project party of the altcoin is obtained, a unilateral announcement to establish a treasury and seek support will not be recognized by the Wall Street financial market, and if operations are not good, it will still face delisting risks.
🔴 The ALT5 stock of the Trump family’s $WLFI has no delisting risk as mentioned above.
✅ ALT5 received an official endorsement from #WorldLibertyFinancial company: When ALT5 announced the establishment of the $WLFI treasury, half of the $1.5 billion funds needed for fundraising, approximately $750 million, had already been mostly underwritten by WLFI Company. The pricing method is to inject $WLFI at a price of $0.2 into ALT Company's treasury in exchange for shares of ALT5 Company.
✅ Currently, ALT5's stock price is unlikely to fall below $1 and trigger Nasdaq's delisting mechanism.
Supplement:
🔴 Of the $1.5 billion fundraising amount announced by ALT5, the WLFI official paid for the private placement part with $WLFI tokens, achieving about half of the fundraising goal.
In addition, only two lesser-known hedge funds, Point72 and ExodusPoint, announced that they contributed about $50 million to participate in the fundraising in exchange for ALT5 shares. It is still unknown whether ALT5 will use this $50 million to purchase from the secondary market or directly from WLFL Company.
If ALT5 uses this $50 million in funds to purchase tokens from the secondary market after circulating on WLFI, it will undoubtedly be a positive for the $WLFI pre-sale users of two rounds.
In addition, among the $1.5 billion fundraising amount announced by ALT5, $750 million of common stock is to be publicly offered. Comparing the total equity data of ALT5 Company on August 12 and August 20, it is expected that this 100 million shares public offering will unfold after being traded on $WLFI tokens, at which point the coins and stocks can interact together. Otherwise, without any positive news, directly increasing shares by 100 million could lead to a significant drop in share prices.
Will continue to monitor WLFI's subsequent announcements.
