- Micro-cap companies like Trident Digital and Addentax are announcing billion-dollar XRP and Solana plans despite having tiny market caps.
- Analysts, including VanEck’s Matthew Sigel, warn these moves resemble pump-and-dump schemes rather than genuine crypto strategy.
- Defi Development Corp. surged from $7M to $379M in market cap after a questionable $5B Solana treasury claim.
XRP is at the center of a new wave of speculative announcements as tiny, low-cap companies rush to declare massive crypto treasury plans during the ongoing bull market. While these headline-grabbing statements may appear bullish, industry analysts are warning that many of them are nothing more than stock manipulation tactics designed to inflate share prices temporarily.
One of the most striking examples comes from Singapore-based Trident Digital Tech, which recently claimed it would raise $500 million to build a large XRP treasury. The problem? The company’s total market capitalization is just $16 million, and its Nasdaq-listed shares trade for under $0.40.
Matthew Sigel, Head of Digital Assets at VanEck, believes these announcements are part of a growing trend where micro-cap firms attempt to mimic legitimate crypto strategies for short-term gain. He labeled them as likely “insider pump-and-dump attempts,” where insiders make grand claims to spark investor interest and then quietly sell their shares into the rally.
“If the market cap is de minimis and there is no disclosure of new anchor investors, I assume it’s a scam,” Sigel said on X (formerly Twitter), pointing to a string of similar cases.
He specifically highlighted Addentax Group, a China-based apparel company with a market cap of just a few million dollars, which made the bizarre claim it would buy $800 million worth of Bitcoin and TRUMP coin. Sigel blurred out the token ticker in his post, urging investors not to fall for what he called “crypto cosplay.”
Small Firms Push Billion-Dollar Solana and XRP Buys
Several other obscure firms have followed suit: Classover Holdings, an ed-tech startup with a market cap below $100 million and shares under $4, announced it plans to raise $500 million for a Solana treasury. Webus International, another small Chinese firm valued at under $100 million, said it would build a $300 million XRP treasury.
Then there’s DeFi Development Corp., which went a step further, announcing a deal to sell up to $5 billion worth of shares to finance a Solana treasury. The company claims crypto investment is its primary business focus. However, just months ago, its market cap was a mere $7 million. It now stands at roughly $379 million, largely fueled by hype surrounding the announcement.
While these bold declarations mimic the playbook of MicroStrategy’s Michael Saylor, who turned his enterprise software firm into a Bitcoin-heavy balance sheet play, analysts say there’s a major difference: Saylor used real capital and strategic funding. These smaller firms are backed by neither.
The pattern has become clear: announce massive crypto investments, drive up the stock price with the help of retail enthusiasm, and allow insiders to cash out before reality sets in. According to Sigel and others, these tactics are not just speculative; they are dangerous for retail investors who may be lured into buying hype without substance.
As XRP-driven crypto markets heat up, the flood of exaggerated XRP treasury plans from penny-stock companies is a stark reminder that due diligence is more important than ever. Not every crypto announcement is a signal of innovation; some may be nothing more than noise.
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