SEC Suspends Buying and selling of QMMM Holdings Amid Crypto Treasury Manipulation Probe

The US Securities and Change Fee (SEC) has quickly suspended buying and selling of QMMM Holdings, citing issues over potential inventory manipulation linked to the agency’s current pivot into cryptocurrency holdings.

Key Takeaways:

• The SEC has suspended buying and selling of QMMM Holdings over issues of inventory manipulation tied to its crypto pivot.
• QMMM’s share worth surged almost 1,800% following bulletins of crypto holdings and a $100M-backed platform.
• Regulators are increasing probes into corporations utilizing crypto treasury methods amid rising fears of hype-driven market abuse.

The buying and selling halt, which took impact Monday, is ready to final 10 buying and selling days.

In its discover, the SEC mentioned QMMM inventory was probably manipulated by “suggestions made to buyers by unknown individuals through social media,” allegedly geared toward inflating each the share worth and buying and selling quantity.

QMMM Soars Almost 1,800% in a Day Following $100M Crypto Platform Reveal

Shares of QMMM Holdings had surged greater than 1,700% prior to now month after the corporate disclosed on September 9 that it could start buying and holding Bitcoin, Ethereum, and Solana as a part of a broader crypto treasury technique.

The inventory soared from $11 to an all-time excessive of $207 in a single day following a associated announcement to launch a crypto analytics platform backed by $100 million in crypto belongings.

QMMM final traded at $119.40 on Friday, up from roughly $6.50 a month earlier.

The suspension arrives simply days after a Wall Avenue Journal report revealed that the SEC and the Monetary Business Regulatory Authority (FINRA) had begun probing a number of firms over related crypto-linked inventory surges.

The inquiry is targeted on whether or not choose corporations or people engaged in inventory promotion campaigns or improperly shared nonpublic info to learn from fast worth actions.

Crypto treasury strikes have exploded in recognition, with greater than 200 firms saying plans to carry digital belongings in current months.

Whereas such methods typically spark inventory rallies, analysts warn the development is turning into overcrowded and dangerous, particularly if falling crypto costs wipe out steadiness sheet positive aspects.

Crypto Treasury Craze Unravels as Corporations Flip to Debt-Fueled Buybacks

The crypto treasury technique that gained traction amongst small-cap corporations in 2024 is starting to unravel, with a number of firms now launching debt-funded share buybacks to counter plunging inventory costs.

At the very least seven corporations, together with these in gaming, biotech, and EV sectors, at the moment are buying and selling beneath the worth of their crypto holdings, elevating crimson flags amongst buyers and analysts.

Critics say the tactic indicators desperation and a departure from the unique concept that crypto appreciation alone would drive shareholder worth.

Notable circumstances embody ETHZilla (previously 180 Life Sciences), which noticed its inventory drop 76% regardless of accumulating ether and rebranding.

The corporate not too long ago secured $80 million in debt to finance a $250 million buyback. In the meantime, Empery Digital (previously Volcon) holds $476 million in BTC however has a market cap of simply $378 million, prompting it to develop its debt facility for related repurchases.

A current report from K33 Analysis reveals that 25% of public firms holding Bitcoin now commerce at market values beneath the value of their BTC holdings, highlighting a pointy drop in investor confidence.

The rising low cost, referred to as the NAV hole, is limiting corporations’ capacity to lift capital, notably hurting smaller gamers like NAKA, which has seen a 96% collapse in its market worth.

The put up SEC Suspends Buying and selling of QMMM Holdings Amid Crypto Treasury Manipulation Probe appeared first on Cryptonews.