VanEck: "Many Smallcap Tokens Claiming Purchases Could Be Scams"

JH Kim

Summary

Matthew Sigel, Head of Digital Assets Research at VanEck, analyzed that many of the smallcap coins claiming to be purchased are likely to be scams.
Emphasizing the dangers of pump and dump schemes, he revealed that there are actions taken to artificially raise prices.
He especially noted that caution is needed for tokens with extremely low market capitalization and no information disclosed about new major investors.

Matthew Sigel, Head of Digital Assets Research at VanEck, analyzed that a significant number of smallcap companies—those with low market capitalization—which claim to purchase hundreds of millions of dollars worth of tokens, are likely engaging in 'pump and dump' schemes intended to artificially inflate prices.

In an interview with cryptocurrency-focused media The Block on the 13th (local time), he said, "If the market capitalization is extremely low and information about new major investors is not disclosed, I believe it's a scam."