Some very low market cap companies suddenly claim they will buy large amounts of $XRP .
and #Solana during the current bull wave in the cryptocurrency market. While these announcements seem massive, they raise serious doubts. Most of these companies have weak ties to the cryptocurrency sector and have very limited financial backing.
Recently, the company Trident Digital Tech announced plans to raise $500 million to build a massive portfolio $XRP , despite its market value being only $16 million, and its stock trading on Nasdaq at less than $0.40.
The plans for XRP bonds and $SOL by small-cap companies are likely operations of fraud. The head of digital assets warns that the recent announcements of XRP and Solana bonds by low-cap Nasdaq companies are likely "pump and dump" schemes...
Matthew Sigel, head of digital assets at VanEck, believes that these moves are likely attempts to boost the stock prices of small companies.
Cheap stocks for giant cryptocurrency companies? VanEck is skeptical.
Indicates that many of these announcements are insider-driven pump and dump schemes, where insiders exaggerate the news to boost the stock price, then sell their shares to realize a profit before the price collapses.
He said, "Insider pump and dump attempts - a lot of them. If the market cap is very small and there is no disclosure of new major investors, I assume it’s a fraud operation."
In a recent post on X, Sigel highlighted Addentax Group, a clothing company based in China with a market cap of only a few million dollars, which claimed it would buy $800 million worth of Bitcoin and Trump coin. The stock tape obscured this, warning followers not to take such claims seriously.
DeFi Dev Corp joined the treasury bond frenzy.
Earlier this month, Classover Holdings, a company specializing in educational technology, announced plans to raise $500 million for Solana bonds, with shares valued at less than $4 and a market cap of less than $100 million. Similarly, Chinese company Webus International, which also has a market cap of less than $100 million, revealed plans to build $300 million in XRP bonds.
DeFi Development Corp is moving towards enhancing the cryptocurrency bond trend. It announced on Thursday a deal to sell up to $5 billion of its shares to build Solana bonds. Unlike other companies, it claims this is its main business focus.
While this announcement boosted its shares, many are skeptical of the company's ability to raise this amount. Just a few months ago, its market value was $7 million; now, it is around $379 million. Sigel believes these small companies are trying to mimic Michael Saylor's book on Bitcoin - but without any real financial backing.
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