According to ChainCatcher, citing The Block, a recent wave of companies—many with very small market capitalizations—have announced their intention to purchase large amounts of popular altcoins such as XRP and Solana. These companies often come from seemingly unrelated sectors of the business world. Matthew Sigel, Head of Digital Assets at VanEck, stated that these so-called initiatives are most likely attempts to boost the share prices of small-cap companies, many of which are listed on Nasdaq.
Sigel said, “In many cases, it’s insiders trying to pump and dump. If the market cap is negligible and there’s no disclosure of new investors, I consider it a scam.”