Analysis: Shifting market sentiment may pose risks to retail investors who purchase shares in digital asset treasury companies.
TL;DR
Retail investors in digital asset treasury companies have lost $17 billion due to shifting market sentiment. Examples show significant token price drops, increasing risks for those holding shares in US-listed firms with small-cap reserves.
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According to a report by Singapore- Odaily cryptocurrency research firm 10X Research, retail investors who purchased shares in Digital Asset Treasury (DAT) companies have lost $17 billion. Analysts point out that a shift in market sentiment could expose retail investors to risks, particularly those holding shares in US-listed companies that have chosen small-cap tokens as part of their treasury reserves. Bloomberg cited examples in its report:
1. Tharimmune raised $545 million to establish the Canton Coins treasury. At the time of the fundraising, the Canton token was priced at $0.20, but the current market price of the token is $0.11.
2. Alt5 Sigma raised $1.5 billion to establish the WLFI treasury. At the time of the fundraising, the WLFI token was priced at $0.20, but the current market price of the token is $0.14.
3. Flora Growth raised $401 million to establish the 0G treasury. At the time of the fundraising, the 0G token was priced at $3, but its current market price is $1.20. (Bloomberg)