Many public companies may be trying to build a large portion of the altcoin to boost stock prices.
Such companies are trying to replicate the models mastered by Michael Saylor’s Strategy (MSTR).
Bitcoin financial strategies have been copied by a variety of companies, and in recent months there have been a few who have been doing something similar to the ether.
However, the possibility that the model will be used alongside other Altcoins (a general term for cryptocurrency that is not Bitcoin) has been skeptical by some commentators on Friday.
Blockchain platform Avalanche is investigating the possibility of selling batches of Avax tokens to publicly available shell companies. According to the report, it quotes people who are familiar with the issue and uses it to gain yields and acquire an investor base and attract an investor base.
Canadian Investment Group RSV Capital hopes to raise $200 million in shares using the shell company deployed to buy Ton.
This method appears to have brought short-term benefits to the locations that were attempted. Litecoin co-founder Charlie Lee invested $100 million in Mei Pharma (MEIP) to buy the LTC on July 18th.
However, such business plans would not bring long-term benefits, according to Eric Benoist, Tech and Data Research Specialist of Natixis CIB, who described it as “very speculative.”
“It’s not going to save them for a very long time,” he said. “At the end of the day, they’re worth what they have on their balance sheet (crypto). That’s it.”
Geoff Kendrick, Global Digital Assets Head at Standard Chartered, described the smaller Altcoin’s move to the Treasury Department as a “bread flash.”
He added that if the token price collapses, the company “will cause pain to either the stockholder or the bondholder.”
