QMMM’s staggering surge
On September 9, QMMM Holdings announced its plans to build a $100 million digital treasury anchored by Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). Immediately after the announcement, its stocks surged over 2,100%, closing up 1,737% on Nasdaq. This raised concerns among regulators about the influence of social media promotions on the stock’s performance.
The suspension by the SEC comes after 14 trading sessions and will be lifted on October 10. The SEC also put Smart Digital Group Ltd. on hold for the same reasons. The ruling is an extension of the crackdown on small‑cap companies that have used crypto stories to get investors’ attention.
The SEC’s order comes at a time of rising adoption of token‑based treasuries by various other firms. Earlier this month, Helius Medical Technologies, a firm associated with medical equipment production, announced a $500 million private investment that was oversubscribed and caused the company’s stock to rise more than 200% in pre‑market trading.