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SEC stops trading with QMMM: Is the crypto rally at the end?
The SEC has released the trade with QMMM Holdings after the share price increases significantly through cryptocurrency trasure plans.
SEC stops trading with QMMM: Is the crypto rally at the end?
The U.S. Securities and Exchange Commission (SEC) today exposed the trade in the shares of QMMM Holdings. This measure follows a sensational increase in the share price by almost 1,000 percent, which took place on September 9 after the announcement of a $ 100 million cryptocurrency trasure. The course of the QMMM shares then increased by 959 percent and reached a maximum of over $ 260 per share. In the days after this hype, however, it fell to around $ 119.
QMMM Holdings Ltd., a company based in Hong Kong, specializes in advertising and plans to integrate cryptocurrencies into its business strategy. The focus is initially on Bitcoin (BTC), Ethereum (ETH) and Solana (Sol), supplemented by an examination of blockchain and AI technologies. Despite the decline, the share price has still increased by more than 2,100 percent compared to the beginning of the year.
Regulatory concerns and trade suspension
The SEC expressed concerns about possible market manipulations and referred to online contributions from non-identified promoters that encouraged investors to buy the QMMM share. As a result, the trade suspension applies until October 10th at 11:59 p.m. Nasdaq, the stock exchange, on which QMMM is traded, is currently refusing to comment, and the company itself has not yet made any statement.
The trade suspension of QMMM is not the only example of this kind. Even trading with Smart Digital Group Ltd. was suspended for similar reasons. This step underlines increasing surveillance by the regulatory authorities in the cryptocurrency sector, especially in view of reports on unusual trade activities in connection with such company announcements.
Strict requirements and market volatility
The SEC has increased the requirements for companies that invest in cryptocurrencies, which has to tighten exchanges like Nasdaq their criteria. In the future, the company expects them to obtain the approval of the shareholders for capital increases associated with crypto purchases. Analysts emphasize that this suspension is a clear sign of the intention of the regulatory authorities to dampen hypeg driven rally and at the same time ensure that stock exchanges are more careful when listing such companies.
With the resumption of the trade on October 10, QMMM could possibly be confronted with considerable volatility or other regulatory challenges, depending on the result of the ongoing SEC test. These developments are in the context of a growing trend of companies that pursue cryptocurrency trasure strategies, inspired by the Bitcoin purchases of the company Microstrategy. However, critics warn that such strategies are able to heat speculation and expose extreme price fluctuations.
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