Digital Asset Treasury companies eventually combined -together under some larger players as the cycle and company try to attract investors, according to Coinbase investment leader, David Duong.
In a cointelegraph -speaking, Duong said outside of strategies to boost sharing prices, “companies can begin to pursue fusion and acquisition, such as recently -only strive and semler scientific deals, as we get closer to the more mature stages of the DAT cycle.”
Asset manager became Treasury of Bitcoin The company is working hard on September 22 that it got fellow dat semler scientific in an all-stock transaction.
At the same time, Duong said, dat also pursue more crypto-native techniques, such as Constitute yields by staking or defi looping, which involves repeating borrowing and reposing the same possession to strengthen returns.
“And there’s still much they can do here. I think the future depends on what happens to the regulations of transferring, liquidity and market pressures to get a clearer sense of which it can go to the long run.”
On September 15, the Standard Chartered predicted that not all dats will live In the long term, which may force them to adopt new approaches or disappear.
Crypto Treasury expects a token to dominate
Duong and fellow coinbase researchers Colin Basco Sept. 10 That DAT breed has entered a phase of player-VS-player, with companies fighting to stand out from the competition.
Duong recently said sharing purchases from Crypto treasury firms In the last few weeks a result of this new phase.
Trump Jr.-link media company Thumzup, who holds in Bitcoin (Btc) and dogecoin (Doge) announced On September 24th it adds a share of sharing from $ 1 million to $ 10 million. Solana (Sol) Treasury Company Defi Development Corp also expanded Sharing its sharing from $ 1 million to $ 100 million.
“I believe where it came from is that companies are under the impression that only a few major players dominate each token, and they compete to change themselves by either the size or financial engineering,” Duong said.
“I also think this approach is likely to contribute to the negative price action observed in mid-late September, as these creatures have previously used capital to boost stock prices in crypto accumulation.”
Some dat struggles to maintain sharing prices, along with Some are missing up to 90% of their valuewhich is associated with market saturation and investor concerns to maintenance.
Share Purchases are inconsistent success
Duong also said that his experience of sharing purchases may not always result in a bump in price, especially if the market sees the action as a negative signal about the company’s long-term health, because it is ultimately “very emotional.”
Related: Risk to crypto treasuries 50% downside to pipe selling pressure
“The effectiveness of hinge purchases to the investors of the underlying foundations of a company,” he said.
“For example, if a DAT uses purchases as a defensive maneuver to reduce its floating, but market players think that the company will retain a great approach to providing capital and transparent funds, then its sharing price can benefit. In contrast, the upside is true when the proper conditions are not met.”
The Ton Strategy Company, formerly known as Verb Technology Company, was announced by a stock buyback on September 12But investors do not react positively, with shares Reduction 7.5%.
Dats have significant handling
The dats that added bitcoin to their balance sheets hold More than 1.4 million coins, which represent about 6.6% of the total supply, costs more than $ 166 billion.
At the same time, 68 companies have obtained A sum of 5.49 million ether, worth more than $ 24 billion. Solana, meanwhile Holding More than 13.4 million tokens, worth more than $ 3 billion.
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