A number of public companies may be building hamsters of altcoins in an attempt to pump their stock prices.
Such companies try to repeat the model mastered by Michael Saylor’s Strategy (MSTR), which has now accumulated 2.9% of all Bitcoin (BTC) that will ever exist. Since it began on its BTC Treasury strategy in 2020, the Mstr Aktie course has increased by over 3,000%.
The Bitcoin Treasury strategy has been copied by a number of different companies, and in recent months there have been several who have done something similar with ether.
However, the possibility of this model being used with other altcoins (a general term for any cryptocurrency that is not Bitcoin) is met with skepticism of some commentators, the Financial Times reported Friday.
Blockchain platform Avalanche is investigating the possibility of selling a batch of his Avax token to a publicly noted Shell company, which it would then use to earn dividends and attract an investor base, according to the report quoting people familiar with the case.
Canadian investment group RSV Capital is looking to raise $ 200 million equity using a shell company that will be implemented to buy tons, FT’s reported.
This method seems to have brought some short -term gains where it has been tried. Charlie Lee, co -founder of Litecoin, invested $ 100 million in Mei Pharma (MEIP) for the company to buy LTC on July 18. MEIP shares jumped 17% after the message before falling back and is about 4.9% higher in the last week, as for writing.
However, such a business plan will provide no long-term benefits, according to Eric Benoist, tech and data research specialist at Natixis CIB, who described it as “huge speculative.”
“It won’t save them for a very long time,” he said. “At the end of the day they will be worth what [crypto] They have on the balance and that’s it. “
Geoff Kendrick, Standard Chartered’s global leader of digital assets, described a step into smaller ALTCOIN state boxes as a “a flash in the pot.”
He added that if the prices of the token collapsed, the companies would “have pain in either stock holder or bondholders.”
