Family, who understands! The crypto circle has another magical scandal, a 'whale company' holding 2 million SOL, with its stock price dropping to the point of only having its underwear left (a 95% crash, with a market value of just over $100 million), actually dares to submit a proposal to the SEC, planning to raise a maximum of $10 billion!
When I saw this news, I almost spilled my coffee on the keyboard. I guess you in front of the screen either had your pupils shake: 'Is this a golden opportunity to pick up a bargain?' or like me, had a face full of question marks: 'Is this operation treating the market like a sucker?'
First, let the new fans clarify the situation: This company called Upexi (stock code UPXI) recently submitted a fundraising application to the regulators, asking for $1 billion, stating that the funds would be used for operations, research and development, and debt repayment. However, the market voted with its feet, and as soon as the news broke, its stock price plummeted, clearly indicating that there is no belief in this narrative of 'using crypto assets to tell stories and raise funds.'
As someone who has been immersed in the crypto circle for many years, I must speak frankly today: This matter is not a 'high-risk, high-return' opportunity at all, but a typical valuation trap arising from the collision of the crypto world and traditional finance. The core issue is simple: The real money on-chain may not be convertible into genuine credit in the traditional market.
Some newcomers may ask: '2 million SOL is not a small number; calculated at the current price, it's worth quite a bit. Why can't it serve as the basis for fundraising?' The trick here is the core of the valuable insights I want to share today: For on-chain assets to transition into the traditional valuation system, they must overcome three 'ghost gates.'
First hurdle: The illusion of liquidity. Many people think that 'holding a certain number of coins' equals 'having that much cash,' which is purely naive. If 2 million SOL were to be sold off all at once, it could plunge the price of SOL into a deep pit, and the actual amount that could be realized might be less than half of what is on paper. Traditional investors are very astute; they do not look at how much crypto assets you have on paper but rather at how much real cash flow you can reliably convert. The gap between the two is deeper than the Mariana Trench.
Second hurdle: Regulatory uncertainty. The regulatory positioning of crypto assets globally is not yet fully defined. Taking a bunch of assets with vague regulatory attitudes to tell stories in the traditional market is like trying to borrow money with a promissory note that may not be honored. The SEC itself is particularly strict regarding crypto-related fundraising. Whether Upexi's fundraising plan can get approved is another matter. Even if it does, there may be various compliance reviews later on. This uncertainty is the biggest taboo for traditional capital.
Third hurdle: Misalignment of valuation logic. What does the valuation in the crypto world look at? It looks at project ecology, user growth, and on-chain activity. What does the valuation in the traditional market look at? It looks at revenue, profit, and industry competitiveness. Upexi's stock price has dropped by 95%, indicating that the traditional market has voted with its valuation, believing that its fundamentals cannot support the previous price. Now, trying to leverage the crypto logic of 'holding coins' to pry open a $10 billion fundraising in the traditional market is akin to playing basketball by football rules; they are simply not on the same wavelength.
To put it bluntly, Upexi's recent actions seem more like 'desperate measures in a crisis' to me. The stock price has plummeted, and they want to rely on crypto assets as a 'lifeline.' However, they haven't realized that the value of on-chain assets must be tied to real business scenarios and compliance frameworks to be converted into credit recognized by the traditional market. Otherwise, no matter how much SOL they have, it’s just 'paper wealth.' Moreover, due to the volatility of crypto assets, the company's financial situation could worsen.
Lastly, I want to ask you in front of the screen: If this fundraising plan really gets approved, would you dare to touch Upexi's stock? How do you think on-chain assets can truly gain recognition in the traditional market? Feel free to leave your thoughts in the comments section and follow me @帝王说币 #加密市场观察 $BTC .
