Alleged Small Companies Traded on Nasdaq Falsely Claiming to Acquire XRP, SOL: Statement by VanEck
In the crypto and investment realm, murmurs of doubt have been swirling around Nasdaq-listed companies boldly declaring their intentions to amass significant quantities of XRP or Solana (SOL). Matt Sigel, the Head of Digital Assets at VanEck, believes these claims, largely from companies with tiny market caps and no disclosed heavyweight investors, are nothing more than smokescreens for insider-directed “pump-and-dump” schemes.
For example, Trident Digital Tech, with a market cap of merely $16 million, announced plans to raise a whopping half a billion dollars to develop a substantial XRP hoard. Similarly, Classover Holdings, a minor education tech firm with a market cap under $100 million, made similar declarations about Solana. Sigel cautions investors about these announcements, as they're often employed to inflate stock prices artificially, allowing insiders to cash outprofitably before the market crashes.
The questionable credibility of these massive crypto acquisition plans stems from micro-cap companies' inability to secure the financial muscle or institutional support usually necessary for such substantial ventures. VanEck and Matt Sigel recommend investors remain vigilant, regarding companies with minuscule market value and no clear disclosure of new anchor investors as potential scam warning signs.
Investors should be especially wary of $3 million market cap companies, like one reportedly planning to invest $800 million in Bitcoin and TRUMP coin, given their Chinese management and suspicious announcements. Matt Sigel even blurred out the ticker for such claims, stating they're not worth the attention.
Interestingly, the SEC is currently engaging with Solana MEV developers to discuss crypto regulation matters, highlighting increasing regulatory scrutiny in the crypto sector. Stay tuned for further updates!
- Despite Solana MEV developers being under regulatory scrutiny by the SEC, some micro-cap companies, such as those with market caps as low as $3 million, are announcing intentions to invest large sums in Solana, Bitcoin, and TRUMP coin, which are questioned by Matt Sigel due to their suspicious announcements, minuscule market value, and lack of clear disclosure of new anchor investors.
- In contrast to Nasdaq-listed companies makes claims of amassing XRP or Solana (SOL) with no disclosed heavyweight investors, reputable businesses like VanEck advise investors to be cautious about investing in companies with tiny market caps and no substantial financial muscle or institutional support, as these announcements could potentially be employed to artificially inflate stock prices, allowing insiders to cash out profitably before a market crash.
