Recently, several small companies with low market caps announced plans to purchase significant amounts of XRP and Solana. These statements raise doubts among experts and market participants.
Small Companies' Large Purchase Announcements
Just recently, Singapore-based Trident Digital Tech announced plans to raise $500 million to build a massive XRP treasury, despite having a market cap of just $16 million and shares trading under $0.40 on Nasdaq. Such announcements among small companies raise questions about the reality of their intentions.
Experts' Opinions on the Situation
Matthew Sigel, Head of Digital Assets at VanEck, believes these moves are likely attempts to boost stock prices of small firms.
> "Insider pump and dump attempts—many of them. If the market cap is *de minimis* and there is no disclosure of new anchor investors, I assume it's a scam," he stated.
Trends in Crypto Treasuries
Recently, Classover Holdings—an ed-tech firm with shares under $4 and a market cap below $100 million—announced plans to raise $500 million for a Solana treasury. Similarly, China’s Webus International, also with a market cap under $100 million, revealed plans to build a $300 million XRP treasury. DeFi Development Corp. is taking the crypto treasury trend a step further, announcing a deal to sell up to $5 billion worth of its shares to build a Solana treasury. However, experts doubt these firms can realize their ambitious plans.
The prospect of large crypto purchases by small companies becomes a topic of discussion in the market. Experts highlight a lack of financial stability and ties to real businesses, which cast doubt on the reliability of these statements.
