Animoca Research: Shitcoin Reserve Strategy Carries High Risk but Could Be a Potential Catalyst for Driving Mass Adoption of Cryptocurrency
BlockBeats News, July 18th, Animoca Brands Research released a report titled "Shitcoin Reserve Strategy," stating that companies are gaining exposure to cryptocurrency through financial instruments such as convertible bonds and equity issuance, usually aimed at gradually increasing their per-share cryptocurrency holdings. This strategy was initially popularized by companies like MicroStrategy, which holds over 600,000 bitcoins, using BTC as a hedge against inflation and currency devaluation.
Today, shitcoins have also entered the corporate view. Companies that have added assets such as BNB, TRX, HYPE, and FET to their balance sheets are providing a scarce investment entry point for investors who wish to invest in these tokens but lack convenient channels such as spot ETFs.
The stock market has responded strongly to such news. According to Animoca's data, companies announcing holdings of shitcoins have seen an average single-day stock price increase of 150%, a one-week increase of 185%, and a one-month increase of 226%. However, these strategies come with higher risks: compared to Bitcoin, shitcoins typically have higher volatility, lower liquidity, and a stronger technological experimental nature, which may amplify losses during market downturns.
The report suggests that if these tokens are used for staking or other network-based functions, it could enhance the liquidity, security, and legitimacy of the entire ecosystem, making shitcoin reserves a potential catalyst for driving wider cryptocurrency adoption.
You may also like
Gainers
Latest Crypto News
Lawyer's Interpretation of the "1128" Regulation Policy: Focus on Regulating Activities Using Stablecoins for Illegal Foreign Exchange交
ShieldWall: In November, there were approximately 15 major crypto hacking incidents, with a total loss exceeding $190 million.
Arthur Hayes on Today's Plunge: Bank of Japan Hints at Rate Hike
Grvt GLP Strategy Reopened, Fund Cap Increased to $7.5 Million
An whale has deposited an additional 1.5 million USDC to avoid the liquidation of a 10x leveraged position in ZEC. The unrealized loss on the position has now reached 4.28 million USD.
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:[email protected]
VIP Services:[email protected]