A growing number of small‑cap firms have announced plans to build multi-million-dollar treasuries in tokens like XRP and Solana.
Many of these companies trade on the Nasdaq but have market values well under $100 million. They say they will raise huge sums to buy crypto, even though their own size makes such goals seem out of reach.
VanEck’s Warning
Matthew Sigel, head of digital assets at VanEck, has sounded the alarm. He said that these announcements often look like stunts to lift share prices.
When a tiny stock claims it will gather hundreds of millions in crypto without naming big backers, Sigel calls it an “insider pump and dump.” He noted that firms with little cash and no clear plans can mislead investors.
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Notable Announcements
Singapore‑based Trident Digital Tech said it will seek up to $500 million to start one of the first large‑scale XRP treasuries. At the time, its shares traded below forty cents and its market cap stood at about $16 million.
Webus International, which works in auto sales and hospitality, unveiled a plan to build a $300 million XRP reserve. Its market value sits under $100 million, and its shares trade under three dollars.
Another curious case was reported when a penny stock with Chinese management claimed it would buy $800 million worth of Bitcoin and even a token called TRUMP coin. The firm’s tiny market cap made the claim seem impossible.
Pump‑and‑Dump Concerns
Firms that issue wild crypto plans often lack the liquidity to match their announcements. They do not name large investors or show solid funding. Critics say these moves are timed to ride a bullish crypto market, pushing their stocks higher.
After the price spikes, insiders may sell, leaving later investors with losses. This pattern has echoed past cases where small issuers made grand claims, only to see share prices tumble once reality set in.
Regulatory and Market Impact
As more small‑cap names jump on the crypto treasury bandwagon, regulators may take notice. The risk of misleading information can hurt investors and unsettle markets.
Fund managers warn that investors should look for clear proof of funding and solid plans before betting on any company’s crypto pledge.
For now, the craze shows no sign of slowing. Small firms continue to court attention with ambitious crypto targets. Some may succeed in raising money or buying tokens.
Others may fizzle out once scrutiny grows. In either case, investors should be careful and demand real evidence before trusting headline‑driven claims.
In the coming weeks, observers will watch which companies follow through and which tactics fall apart. The trend highlights the need for clear rules and honest disclosure in both stock and crypto markets. Until then, cautious investors will stay on guard against promises that sound too big to believe.
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