Small Nasdaq Companies Raising Millions for Cryptocurrency: VanEck Warns of Potential Pump-and-Dump Schemes

Some small Nasdaq-listed companies are claiming they will purchase substantial amounts of XRP or Solana (SOL), raising concerns that these endeavors may be part of pump-and-dump schemes. Matthew Sigel, Head of Digital Assets at VanEck, highlights this potential risk.

Sigel points out that these companies often have low market values but aim to raise hundreds of millions or billions of dollars to acquire crypto assets. However, he notes that if the company’s market value is negligible and lacks transparency about new investors involved, such attempts could be considered scams.