The US SEC strikes hard! QMMM's stock price experienced a big pump of 10 times and was urgently suspended, triggering regulatory alarms over the "encryption treasury" concept.

The U.S. Securities and Exchange Commission (SEC) announced late at night on September 29 that it would immediately suspend trading of the stocks of Hong Kong digital media company QMMM Holdings Ltd. listed on Nasdaq until October 10. Previously, QMMM announced the establishment of a $100 million "diversified Crypto Assets treasury," causing its stock price to rise from less than $12 to $119.40 in three weeks, an increase of nearly 1,000%, making it a hot topic in the market as a "meme stock." The SEC's emergency suspension directly points to the behavior of "unknown individuals" recommending buying on social media platforms, suspecting price manipulation. This move not only targets specific companies but also serves as a severe warning to the entire "Crypto Assets treasury" craze and the market manipulation incited by social media, emphasizing that Crypto Assets stocks lacking fundamentals and transparency will ultimately face regulatory intervention and a rational return of the market.

SEC's Rare Late-Night Action: Directly Targeting Community Manipulation Risks

QMMM is a company headquartered in Hong Kong and listed on NASDAQ through a Cayman Islands structure. Its stock price's crazy rise began on September 9:

Stock price frenzy: After announcing plans to establish a $100 million Crypto Assets treasury, QMMM's stock price soared from less than $12 to a high of $119.40 on September 27, marking an increase of up to 1,000%.

Regulatory Red Line: The SEC's suspension order has put a stop to this frenzy. Official documents clearly state that the reason for the suspension is due to "recommendation buy" posts by "unknown individuals" on community platforms, which may involve stock price manipulation.

Clear Warning: This action has sent a clear signal to the market: the SEC remains highly vigilant against retail communities amplifying speculation through social media, leading to a disconnection between stock prices and fundamentals. Even crypto concept stocks that are tainted with the "blockchain + artificial intelligence" narrative could be decisively halted by regulators if there are suspicions of market manipulation.

The Dual Nature of "Crypto Treasury": Opportunities and Bubbles

The "crypto treasury" (i.e., companies converting part of their funds into BTC, ETH, SOL and other Crypto Assets) has become a popular trend for companies chasing valuation dividends and brand halo in 2025. However, QMMM has become a typical case of bubble burst in this trend:

Weak fundamentals: QMMM's financial report shows that its main business has been in long-term loss with weak revenue, unable to support its sudden big pump in market value. The stock price completely relies on the narrative imagination of the "crypto treasury."

Bubble Burst: A digital media company that packages itself as a "on-chain millionaire" based solely on a press release ultimately cannot withstand regulatory scrutiny and the return of market rationality.

Mirror Case: The Reverse Script of Smart Digital Group

On the same day that QMMM was suspended by the SEC, Smart Digital Group Ltd. was also affected. The company announced plans to establish a crypto assets pool targeting BTC and ETH, but its stock price plummeted by about 86%. The reason for the sharp decline was the lack of key details in the announcement (such as the scale of funding and asset allocation), which prevented investors from assessing its feasibility and led them to vote with their feet.

The SEC simultaneously froze these two cases, indicating that the regulatory agency's focus has shifted from the actions of individual companies to the entire "Crypto Assets Treasury" concept craze, and has listed the interactions between social media and retail investors as a key risk source that requires attention.

Conclusion

The dual suspension of QMMM and Smart Digital Group has poured cold water on the trend of "crypto treasury" that companies are keen on in 2025. This incident strongly reminds the market that while crypto assets can provide enticing growth imaginations, such imaginations must be built on a solid foundation of transparency and substantial revenue. Crypto concept stocks that lack fundamental support and rely solely on community hype are nothing but fragile bubbles, which may be cut off from trading at any time by regulators under the guise of manipulation.

Will this incident prompt more listed companies to provide more detailed and conservative financial and transparency disclosures when announcing their crypto strategies to avoid being targeted by the SEC?