The price rise that Bitcoin (BTC) and cryptocurrency have been illuminated in recent months illuminates the alarm of influencer Manuel Terrorones Godoy (also known as Kmanus).
Analysts recall this phenomenon, which “started a while ago,” and have a starting point for strategy. Michael Saylor’s company has become a company that has come to be directly exposed to Bitcoin, and has reached the success of the stock market, especially as the value of its actions has increased 30 times over five years.
From there, it was other companies that began to mimic strategies. “So others like Sharplink Gaming did that with ether (ETH), for example,” Terrones says. “And now, this boom is being replicated for many companies, Bitcoin, ETH and other tokens,” he added.
Currently, 64 institutional investors have adopted ETH as a reserve asset, adding 2.5 million Etasha to the hands of companies. With a par, 200 other companies between private and public contributions; They focus on Bitcoin, with over 1.2 million currencies in business custody. As reported by Cryptonoticia, there are also other corporate entities that accumulate other cryptocurrencies such as Solana (SOL), XRP, and SUI.
The logic is simple. Companies issue debt or actions to purchase cryptocurrencies that increase the value of the Ministry of Finance.
“We buy low-capitalization companies. Many are not from cryptocurrencies either. We will change names as needed and start issuing actions to buy cryptocurrency,” explains Godoy Terrones.
One of the most recent examples is Tron Inc., formerly known as SMR. “The company starts to accumulate Tron (TRX) and becomes the cryptocurrency vuele,” he says.
At the end of July, Cryptoothic reported that Tron Inc. wanted to increase his Treasury with the same name Cryptoc Approve the issuance of securities for up to $1 billion.
The mechanic repeats. The company has adopted the Cryptocurrency Department, and announces that its actions will rise, broadcast more titles, buy cryptocurrency and the cycle will resume.
However, according to the lump, This model is not exempt from risk. He warns that the actual risk is not that cryptocurrency will fall, but that the weakness of the model is the relationship between the value of action and cryptocurrency. “The real risk is that the action doesn’t increase.
The titles issued by these companies are not collateralized with cryptocurrency. “They don’t leave cryptocurrency as a guarantee. Everything is based on the expectations that actions will rise,” he explains. “And it works while there’s liquidity in the market and you’re willing to keep betting on that story.”
According to Terrones Godoy, the rise of this model has not been driven by retail investors. “The public didn’t buy it yet. They’re buying Wall Street,” he says. “Institutional places itself using traditional tools such as ETFs.”
There are already quoted funds for Bitcoin, ETH and the Sun, and we expect terrorism to “have a little bit more.” However, he points out that ETFs are not the only way. “It wasn’t even the most used form for a long time. What was used was a debt structure, like a strategy.”
How to make a profit?
In the face of this dynamic, Lump identifies two ways of profit. Invest in the behavior of these companies or get cryptoactive directly.
“You can get involved in the action and create X10, X30 in a short amount of time,” he says. “But you can lose 99%. I prefer to buy cryptocurrency rather than action. It’s real worth,” he said.
We are cautious about the future of the model. “For me, this is an internet money bubble, like a Com Point bubble,” he says. “How long did it last? From 97 to 2001. It was a party for four years. This could last four years or six months. No one knows.”
One of its main concerns is access to liquidity. “More and more companies are looking for money from the market to pay their debts,” he says. “What happens on the day they stop giving money? On days when global liquidity decreases, this circuit will be reduced. If we can’t issue any more debt or actions, we cannot continue to buy cryptocurrency.
In that scenario, “If action doesn’t take place, you won’t be able to comply with convertible bonds, or pay credits, and no one will give you that.
Despite his warning, We recognize that this phenomenon provides visibility into the ecosystem. “The good part is that he gives a lot of coverage to the cryptocurrency world,” he says. “And when this clicks, it’s not cryptocurrency that falls, it’s actions. Crypto-active ones are slightly reduced by sales pressure, but that’s not a fundamental issue with assets.”
For now, Kmanus follows closely the behavior of the model. “Five years later, if this didn’t burst, I’d have to go back and say, ‘Boys, the model was sustainable.’ But today, I don’t look like that,” he emphasizes. “It seems better to benefit from cryptocurrency. It will come down a little when you get off, but it won’t reach zero as it can happen with action,” he concluded.