Crypto Crash: 50% Drops Loom as PIPE Investors Unleash Their Destructive Glee! 😱

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It appears the crypto treasure chest is at risk of being raided, with the poor souls behind these treasury stocks staring down the barrel of a gun-one that potentially fires 50% losses!

 

Crypto treasury firms that opted for the golden ticket of private investment in public equity (PIPE) deals might just be sitting on a ticking time bomb. 💣

According to our dear friends at CryptoQuant, the stock prices of these companies could plummet as if they were weightless marbles dropped from a steeple. The expiration of lock-ups for PIPE investors means the moment they can sell, the market could drown under the sheer force of heavy selling pressure.

The Perils of PIPE Deals

PIPE deals have become something like a trendy diet-instant results with dire long-term consequences. They let investors grab fresh shares for less than the market price, leaving the public longing for the good old days. 🍔

Sure, it gets cash flowing faster than a river during flood season, but once those shares flood the market, watch out! The resulting chaos can be quite a sight to behold.

From $35 to $1: the PIPE deals are turning Bitcoin treasury stocks into sad little toys. 🤹‍♂️

Take Kindly MD (NAKA), for example. They soared like a hot air balloon, hitting 18.5 times their value within weeks, only to come crashing down to $1.12, a level their investors might just want to forget.

Gravity is so brutal in the land of PIPE.

– CryptoQuant.com (@cryptoquant_com)

CryptoQuant, ever the oracle, points out that as PIPE investors dump their shares, the market gets flooded like a bathtub with the drain plugged. This overhang can turn any promising stock price to dust. 💨

In short, many companies are seeing their stock prices skulk back to the levels at which they issued their shares-what a cheery reunion!

Sad Stories of PIPE Selling Pressure

Look around, and there are plenty of what could be called cautionary tales out there. 📉

For instance, Kindly MD (NAKA) shot up to nearly $35-like a rocket! But when the investors got hold of their selling rights, it plummeted 97%, barely managing to cling to life at $1.16, close to that original PIPE price. Ah, the irony!

From $35 to $1: the PIPE deals are turning Bitcoin treasury stocks into sad little toys. 🤹‍♂️

Take Kindly MD (NAKA), for example. They soared like a hot air balloon, hitting 18.5 times their value within weeks, only to come crashing down to $1.12, a level their investors might just want to forget.

Gravity is so brutal in the land of PIPE.

– CryptoQuant.com (@cryptoquant_com)

And it doesn’t stop there! Companies like Strive Inc. (ASST) and Twenty One Capital have found the merry-go-round of price declines far less entertaining. Strive’s stock, once a proud stallion, has galloped down by 78% since its May high. Who would have imagined that the party would end like this?

More Downhill Slopes for Crypto Treasury Stocks?

The grim reality is that the gloom created by PIPE deals is far from over-it’s just getting warmed up! 🥵

Once those lock-up periods blow open like a door to an overflowing buffet, the price swings could be more thrilling than a roller coaster ride designed by an enthusiastic child.

CryptoQuant warns of a potential 50% plummet-a staggering number that could make Wall Street weep. Unless, of course, our dear Bitcoin decides to throw a party and rally hard, offering a lifeline to these beleaguered crypto treasuries. But alas, without such a rally, the continuous selling pressure might reduce these companies’ stock prices to mere afterthoughts.

With PIPE deals still all the rage for capital raising in this digital wonderland, the specter of further losses continues to loom large over these companies. The struggle to keep those stock prices afloat while dodging the effects of PIPE selling pressure is like trying to keep a beach ball submerged in a swimming pool while everyone else is having a blast. Good luck with that! 🎈

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2025-09-26 17:40