"Virtual asset-holding companies could transfer insider trading to traditional finance"

Recently, centered on the U.S. stock market, digital asset treasury (DAT) companies that incorporate virtual assets (cryptocurrencies) into corporate financial assets are increasing, and a warning has emerged that this phenomenon could pose an insider trading risk to traditional financial markets.

On the 29th (Korea time), according to cryptocurrency-specialized media Cointelegraph, CEO Shane Molidor Fogd said, "Front-running (gathering information in advance) occurs in the process of learning in advance which assets DAT will purchase," and "structural problems of the virtual asset market are moving into traditional finance through DAT."

Molidor said he viewed the increase in DATs with smaller market capitalizations following Bitcoin (BTC) and Ethereum (ETH) as vulnerable. He emphasized, "The shallower the liquidity of an asset, the more clearly some participants who have identified DAT's purchase plans in advance drive up prices through pre-emptive buying," and "price increases stimulate fear-and-greed sentiment to induce lagging purchases, and as this process repeats it is prone to overheating."

He added, "Currently Bitcoin's market depth is large so this effect is not significant, but small assets still respond sensitively to DAT purchases," and "large issuers do not understand financial structures, and institutions do not know cryptocurrency market mechanisms well. Lack of understanding on both sides is enlarging the problem."