How Insiders Turn Locked Tokens into Guaranteed Profits: The Treasury Companies Scheme and Its Dangers

Part 1: Introduction — A New Scheme for Insiders

In recent years, a new scheme has emerged in the crypto industry that allows insiders to turn locked tokens into guaranteed profits.

This strategy, known as the "Trezor Company Scheme," is actively used to manipulate markets and profit at the expense of inexperienced investors.

Its core involves creating or utilizing existing low-capitalization companies that become "trezor" structures—entities holding large amounts of altcoins on their balance sheets. Insiders use these companies to sell shares at inflated prices and manipulate token prices.

Part 2: How the Scheme Works

The idea behind this scheme is as follows: insiders select a publicly traded company with a small market cap—often in crisis or near bankruptcy—and invest significant funds into it.

These funds are used to purchase altcoins, which are then stored on the company's balance sheet. Afterward, a transition to a "trezor company" strategy is announced, causing the stock's value to rise due to increased assets.

Next, insiders begin selling their shares to retail investors at inflated prices, and after lock-up restrictions are lifted, they exit the market. As a result, early investors realize profits, while new buyers are left with overvalued assets. An important part of the scheme involves using locked tokens: insiders can sell them at discounted prices through companies or monetize them on exchanges, creating an illusion of liquidity.

Part 3: Common Schemes and Practical Examples of Market Manipulation

In practice, there are cases where companies use public markets to raise capital and create the illusion of growth. Such companies often announce expansion plans or new projects, which leads to an increase in the value of their shares or tokens.

However, in reality, a significant portion of the raised funds is used to support prices, buy back their own shares or tokens, while actual business initiatives are implemented on a smaller scale or not at all. As a result, the asset prices sharply decline, causing losses for investors.

These schemes allow insiders to manipulate the market by creating an illusion of project prospects and attracting new investments based on market trust. This highlights the risks associated with using public platforms for personal gain with minimal transparency.

Other examples include projects like MCVT and SUI. MCVT plans to become a trezor company for the SUI token, attracting hundreds of millions of dollars. However, most of these funds might be used not for buying tokens on exchanges but for repurchasing locked tokens from funds or team holdings at contractual prices. This effectively subsidizes unlocking assets for insiders at retail investors' expense.

Nasdaq - https://www.nasdaq.com/

Sui - https://sui.io/

MCVT - https://millcityventures3.com/

Part 4: Market Impact and Participants

This scheme creates a powerful mechanism for insiders to quickly profit at retail investors' expense.

It allows managing multiple companies during market booms, creating an illusion of sector growth. However, behind this lies high risk: after periods of hype, markets often experience sharp declines—by 40-50% in a short period—with little chance for quick recovery.

Public markets turn into repositories for illiquid assets manipulated by insiders: instead of waiting for token unlocks, they monetize assets through corporate shares or sell locked tokens at inflated prices.

Retail investors should be cautious when buying assets after price surges and understand these manipulation mechanisms.

Part 5: Conclusions and Outlook — Dangers and Advice

The Trezor Company scheme demonstrates how traditional corporate financing methods are adapted for crypto markets to extract profits from inexperienced participants.

Insiders exploit FOMO (fear of missing out) and informational gaps to legitimize their schemes through public markets.

Despite potential ongoing practices due to high volatility and lack of regulation, these schemes are highly unstable. Ultimately, markets will face sharp declines—by 40-50%—with little chance for rapid recovery.

Therefore, retail investors should be cautious about risks and avoid purchasing overvalued assets driven by hype or insider manipulation.

Stay cautious and informed — understanding these schemes will help protect your investments in the volatile world of cryptocurrencies!