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Nidhi Kolhapur
Nidhi Kolhapur
Author
Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.
Reviewed by:
Qadir AK
Reviewed
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Jun 14, 2025 06:21 UTC
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XRP and Solana Treasury Plans Are Likely Scams, Warns VanEck
Small-cap firms like Trident and DeFi Dev Corp announce massive XRP and Solana buys, sparking pump-and-dump concerns.
VanEck’s Matthew Sigel warns of insider-driven scams, as firms with low market caps claim billion-dollar crypto treasury plans.
Some small companies with very low market value are suddenly claiming they will buy large amounts of XRP and Solana during the current crypto bull run. While these announcements sound big, they are raising serious doubts. Most of these companies have no strong ties to the crypto industry and very limited financial backing.
Just recently, Singapore-based Trident Digital Tech announced plans to raise $500 million to build a massive XRP treasury, despite having a market cap of just $16 million and shares trading under $0.40 on Nasdaq.
Matthew Sigel, VanEck’s Head of Digital Assets, believes these moves are likely attempts to boost the stock prices of small companies.
Penny Stocks to Crypto Giants? VanEck Doubts It
He suggests that many of these announcements are insider-driven pump-and-dump schemes, where company insiders hype up news to inflate the stock price, then sell their shares for a profit before the price crashes.
“Insider pump and dump attempts—many of them. If the market cap is de minimis and there is no disclosure of new anchor investors, I assume it’s a scam,” he said.
In a recent X post, Sigel highlighted Addentax Group, a China-based clothing company with a market cap of just a few million dollars, which claimed it would buy $800 million worth of Bitcoin and TRUMP coin. He blurred the ticker, warning followers not to take such claims seriously.
DeFi Dev Corp Joins the Treasury Craze
Earlier this month, Classover Holdings—an ed-tech firm with shares under $4 and a market cap below $100 million—announced plans to raise $500 million for a Solana treasury. Similarly, China’s Webus International, also with a market cap under $100 million, revealed plans to build a $300 million XRP treasury.
DeFi Development Corp. is taking the crypto treasury trend a step further. On Thursday, it announced a deal to sell up to $5 billion worth of its shares to build a Solana treasury. Unlike others, the company claims this is its primary business focus.
While the announcement boosted its stock, many doubt the firm can raise that much. Just a few months ago, its market cap was $7 million; now, it stands around $379 million. Sigel believes these small firms are trying to mimic Michael Saylor’s Bitcoin playbook—but without any real financial backing.
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FAQs
Experts like VanEck’s Matthew Sigel highly doubt the genuineness, suggesting many are insider-driven “pump-and-dump” schemes designed to artificially inflate stock prices.
Claims by low-market-cap firms (e.g., Trident Digital Tech at $24.6M, Addentax Group at $5M, Classover Holdings at $87M, Webus International at $63M) to raise hundreds of millions for crypto treasuries are generally considered highly suspicious due to financial limitations.
Investors face significant risks, including potential losses from pump-and-dump schemes, market manipulation, lack of genuine financial backing, and the extreme volatility of both penny stocks and cryptocurrencies.
Yes 
No 
