A group of small Nasdaq-listed companies has announced plans to acquire significant amounts of cryptocurrencies, raising questions among experts about the underlying motives.
Companies Announce Large Crypto Purchases
Several small companies, including Trident Digital Tech and Addentax Group Corp., have declared intentions to purchase large amounts of cryptocurrencies, including XRP and Solana. These companies have market caps below $16 million. Critics argue that such behavior may be part of strategic maneuvers to temporarily inflate stock prices.
Market Reaction and Expert Opinions
Expert opinions regarding the announced plans remain skeptical. For instance, Matthew Sigel from VanEck characterized these moves as potential scams. He stated: 'A lot of this looks like insiders trying to pump and dump. If the market cap is negligible and no new investors are disclosed, I would assume this to be a scam.'
Lack of Evidence Affects XRP Price
Despite the lack of purchase confirmations, XRP's price remains stable. At the time of the news, XRP was trading at $2.14, with a market cap of about $126.11 billion. As small companies often make such announcements to boost their stocks, the absence of real purchases may lead to a counterproductive effect.
In this situation, experts urge investors to exercise caution and maintain skepticism regarding the stated intentions of small companies to acquire cryptocurrency. The lack of evidence and transparency may indicate potential market manipulations.
