VanEck Digital Assets Head: Low Market Cap Listed Companies' Claims of Building Large-Scale Crypto Reserves Can Be Seen as a Scam

ChainCatcher news, according to The Block, recently there has been a wave of companies (many of which have small market capitalizations) announcing their intention to buy large amounts of popular altcoins like XRP and Solana. These companies often come from seemingly unrelated corners of the business world. Matthew Sigel, head of digital assets at VanEck, stated that these so-called initiatives are likely just attempts to inflate the stock prices of small-cap companies, many of which are traded on Nasdaq.

Sigel said, "Many are insiders trying to pump and dump; if the market cap is negligible and there are no new investors disclosed, I would consider this a scam."