Some small Nasdaq-listed companies are trying to attract attention with plans to invest large sums into cryptocurrencies like XRP and Solana. However, analysts believe these actions may be part of market manipulation schemes.
Pump-and-Dump Schemes in the Crypto Industry
Recent announcements regarding the investment intentions of small companies in XRP and Solana have raised doubts among experts. Matthew Sigel, Head of Digital Assets at VanEck, pointed out that such companies often have very low market values and rarely disclose information about their new investors. He emphasized, "Insider pump and dump attempts are common. If the market cap is minimal and there is no disclosure of new investors, I assume it’s a scam."
Examples of Companies with High Ambitions
Among the companies mentioned is Trident Digital Tech from Singapore, which announced plans to raise up to $500 million to create a large XRP treasury. The company's shares were trading for less than 40 cents, with a market value of around $16 million. A similar plan was announced by Classover Holdings Inc., which aims to raise $500 million to build a Solana treasury while its shares traded for under $4 and its market cap was below $100 million.
Experts' Opinions on Market Situation
Sigel particularly noted DeFi Development Corp, which attempted to sell shares worth up to $5 billion to fund a Solana treasury. He mentioned that such radical announcements from companies with small market caps should not be taken seriously, as they can distract from real activities. In his comments, he also highlighted other companies with similar schemes.
The situation in the cryptocurrency market remains complex, and analysts urge investors to be cautious of small companies' claims, as they may hide manipulation schemes.
