Crypto Market Manipulation: Insider Schemes Using Treasury Companies for Quick Profits

I've noticed a new trend in the cryptocurrency market involving 'treasury-company' schemes. These strategies enable insiders to quickly profit by converting illiquid tokens into cash, often at retail investors' expense. Typically, the process begins by acquiring a nearly defunct public company at a low price and injecting funds through various 'funds,' subsequently changing its profile to a 'crypto-holding' entity. Next, the company purchases tokens—often from insiders at predetermined prices—puts them on the balance sheet, and announces a new strategic direction. This leads to a rapid rise in stock prices, enticing retail investors to buy at peak prices without understanding underlying details. Meanwhile, insiders wait for the token lock-up period to end, then sell off their holdings, leaving the company with overvalued assets and retail investors facing losses. This scheme tends to be effective as long as the market is trending upwards. However, once the market shifts or the music stops, late entrants will be the ones most affected, bearing the brunt of the losses. It’s a clear example of how market manipulations can exploit less informed investors and create artificial bubbles in the crypto space.