VanEck's Head of Digital Assets: Low Market Cap Public Companies Claiming to Build Massive Crypto Reserves Can Be Considered Scams

BlockBeats reported on June 14 that recently, a wave of companies—many of which have very small market caps—announced their intention to purchase large amounts of popular altcoins like XRP and Solana. These companies typically originate from seemingly unrelated corners of the business world. VanEck's head of digital assets, Matthew Sigel, stated that these so-called moves are most likely attempts to drive up the stock prices of small-cap companies, many of which are listed on Nasdaq.

Sigel commented, "A lot of this looks like insiders trying to pump and dump. If the market cap is negligible and no new investors are disclosed, I would assume this to be a scam."