Recently, I met and chatted with quite a few 'veterans' in the crypto community, and today I want to share with you a little-known angle — how 'crypto stock companies' really operate to drain the market.

1️⃣ Startup Phase: Buying 'Living Dead' on the Stock Exchange

Assuming you have 10 million USD in hand.

You will take 5 million USD to buy a shell company listed on Nasdaq.

These companies almost have no real business activities, only “legally listed codes” remain.

On Wall Street, this is an extremely popular trick — buying “entry rights” without having to create any product.

2️⃣ Setup Stage: Hire FA Team to Create the “Billion Dollar Dream”

The remaining 5 million USD, you transfer to the FA (Financial Advisor) team.
They will help you:

  • Crafting an engaging story: for example, “Web3 innovates finance”, “AI blockchain”, “Bitcoin strategy”…

  • Attracting media, PR, investors.

  • Then pushing the company's valuation up to 100 million USD through fundraising, hype, and growth expectations.

From 10 million USD initial, you suddenly have a listed company worth 100 million USD — just by a few chart drawings and an engaging story.

3️⃣ Transformation Stage: Use New Capital to “Buy Coin”

You take the 100 million USD you just raised to buy BTC, ETH, or blue-chip cryptos.

Then loudly announcing:

“We officially become a Bitcoin strategy company (Bitcoin Strategy Company)!”

At the same time, to reduce risk, you will short a part of the assets to lock in profits.

Thus, whether the market goes up or down, you do not incur losses — assets stabilize at a high level, and your stocks are also naturally insured.

4️⃣ Spread Stage: Media – FOMO – Pumping

When the market sees a listed company that both “holds coins”, is involved in ETFs, and has an attractive growth story, the crowd starts to FOMO.

Stocks are pushed up strongly, speculative cash flows pour in. The higher the price, the more “successful” the company looks.

5️⃣ Curtain Call: Liquidate Without Looking Back

  • When the stock price has soared, you start to quietly liquidate.

  • Sell stocks, exchange for cash, then return to buy coins to push the price further.

  • A round of virtual capital turns real, the market gets even more excited.

🌀 Cycle of “Lifting Yourself to the Sky”

The cash flow keeps rotating:

  • Stock price rises → money → buy coin → coin rises → stock price rises again → call for more capital.
    A positive feedback loop that makes both the crypto and stock markets spike together.

Two years later, when the whirlwind ends, those who laugh are Wall Street,
while the ones who cry are retail brothers in crypto — those who bought at the peak of both coins and stocks.

💡 Lesson

In the financial world, the “market” is not only created by the flow of money but also by the big enough stories that make people believe.

When you only see the price increase without understanding the structure behind it, you are stepping into a game where your pieces are just pawns.