VanEck Exec Warns of ‘Pump and Dump’ Risks Amid Wave of Bold Crypto Accumulation Claims
A recent surge in altcoin accumulation announcements from low-cap companies has sparked skepticism across the industry.
VanEck’s Head of Digital Assets, Matthew Sigel, has raised red flags over what he describes as potential “pump and dump” schemes dressed as strategic investments.
“Many of these tiny Nasdaq companies claiming they’ll buy hundreds of millions of dollars’ worth of XRP or SOL are likely engaging in pump and dump tactics,” Sigel cautioned.
His remarks come after a company with a market capitalization of just $16 million declared plans to raise as much as $500 million to buy XRP. The move, while garnering media attention, raised eyebrows for its apparent disconnect between the company’s size and the scale of its proposed crypto exposure.
Sigel’s comments reflect growing unease over a trend gaining momentum during crypto’s bull run: publicly listed micro-cap firms — often from unrelated industries — issuing high-profile declarations about large-scale token acquisitions. While these announcements typically generate short-term spikes in trading volume or share price, industry analysts warn they may lack substance or follow-through.
The phenomenon has drawn comparisons to similar behavior during past crypto booms, when vague blockchain ambitions and token integrations were used to fuel market speculation.
With retail enthusiasm rising alongside altcoin prices, Sigel and others urge investors to approach such headlines with caution. “It’s important to separate genuine strategic adoption from opportunistic marketing,” he said.
As crypto continues to integrate more deeply into traditional finance, analysts expect regulatory scrutiny to increase, especially around misleading claims that may distort public markets.
Kosta Gushterov
Reporter at Coindoo
Kosta joined the team in 2021 and quickly established himself with his thirst for knowledge, incredible dedication, and analytical thinking. He not only covers a wide range of current topics, but also writes excellent reviews, PR articles, and educational materials. His articles are also quoted by other news agencies.
