The US Securities and Exchange Commission has temporarily stopped trading of Crypto Treasury Company QMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM Holdings due to potential stock manipulation, which is coming only a week after a regulatory investigation report in some crypto treasury firms.
The agency said in a notice on Monday, “The Commission temporarily suspended trading in QMMMMMMMMMMMMMMMMMMMMMMMMMMM due to potential manipulation.
It states that the alleged manipulation was “affected through recommendations, investors to buy QMMM shares” to buy through social media by unknown individuals, “designed to increase the price and quantity artificially.”
After announcing September 9, the shares of QMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM are more than 1,700% that they will buy and catch Bitcoin (BTC), Ether (Eth) and Solana (SOL), will include dozens of companies who have recently made similar tricks in the hope of raising their shares.
SEC and QMMM Holdings did not immediately respond to the request of the comment.
Crypto strategy unrelated to trading stop
Carl Capoluiga, senior editor of the market analysis platform market index, told coinalgraph that such SEC trading suspensions are “very rare, usually due to company management results.”
He said, “If the SEC can add those ‘unknown persons’, who are responsible for buying the company’s stock back, or worse, for management, then the punishment may be serious, including large fine or prison time,” he said.
Capolingua stated that QMMMMMMMMMMMMMMMM’s crypto pivot may have made the business more attractive, its crypto strategy “is unlikely to be an item of investigation for SEC” because the alleged “illegal stock promotion is the main issue here.”
IG Australia analyst Tony Psychmore told the coinalgraph that if investors want a crypto exposure, “there is no way to go about this type of Hell Mary plays”.
QMMMMMMMMMMMMMMMMMMM does more than 1,700% benefit before trading poses
The shares of QMMMMM Holdings (QMMM) had closed trading at $ 119.40 on Friday, increasing by about $ 6.50 to 1,730% in the last month.
QMMMMMMMM at an all -time high level of $ 11 to $ 207 in a single day increased to create a crypto analytics platform and will initially spend $ 100 million for stockpile cryptocurrency.
SEC, Finra allegedly check Crypto Treasury
SEC trading hold on QMMM on Thursday follows a report in the Wall Street Journal that the Regulatory and Financial Industry Regulatory Authority contacted some companies that started the Crypto Treasury Strategy.
Connected: Crypto Treasury MNAV metric ‘needs to be deleted’ – Nydig
According to people familiar with the case, SEC and Finra had examined unusually high trading volume and price benefits in some company shares.
The SEC rules decide that companies cannot selectively disclose non -census information, as they know that information can be used to obtain incorrectly or to avoid damage before wide public disclosure.
Crypto Treasury companies have become the hottest trend on Wall Street in recent months, reporting that more than 200 new companies have announced a plan to buy and organize crypto.
Such announcements generally, but not always, increase the company’s stock price; However, some analysts are worried that the market is congested and if the value of their holdings is higher than their market value, many companies can be seen falling.
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