Companies Announce They Will Purchase Large Amounts of Solana and XRP: But There Are Suspicions of Major Fraud!

The announcement by micro-cap companies, which are riding the wave of the rise in the Crypto market, that they will purchase hundreds of millions of dollars in crypto was met with skepticism by VanEck.

Matthew Sigel, Head of Digital Assets at VanEck, stated that many of these initiatives could be fraud attempts aimed at "insider price inflation."

Plans for creating a treasury focused on popular altcoins, especially XRP and Solana (SOL), have rapidly spread in recent weeks. However, these announcements mostly come from companies with low market value and no direct relation to crypto.

One of the most recent examples is the Singapore-based company Trident Digital Tech. The company announced that it plans to "raise 500 million dollars to establish one of the world's first large-scale institutional XRP treasuries." However, at the time of the announcement, the stock price on Nasdaq was below 0.40 dollars, and the market value was only 16 million dollars.

Sigel from VanEck states that such initiatives typically aim to mislead investors and artificially raise stock prices. Sigel said, "If the market value is very low and there has been no announcement of new investors, I assume this is fraud."

Sigel cited an example in a post made last month on the X ( platform, previously known as Twitter), announcing that a US company with a market value of only 3 million dollars, owned by Chinese management, would purchase 800 million dollars worth of BTC and TRUMP memecoin. This company was the China-based clothing manufacturer Addentax Group Corp. The company’s shares are currently trading at 0.63 dollars.

Similarly, earlier this month, Classover Holdings Inc., an education technology company listed on Nasdaq, announced its desire to establish a $500 million Solana treasure despite having a market value of less than $100 million. The company's shares are trading below $4.

VanEck officials and industry observers argue that such announcements should be approached with caution.

*This is not investment advice.

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