Analysis: The risks of cryptocurrency asset reserve companies are similar to the collapse of the Internet bubble in the 21st century.

PANews September 28 news, according to Cointelegraph, the founder of the peer-to-peer lending platform NoOnes, Ray Youssef, pointed out that the rise of crypto assets reserve companies is similar to the investment frenzy during the internet bubble period, with significant market risks. He believes that although the entry of institutions marks crypto assets as a mainstream asset class, most reserve companies will struggle to sustain and may be forced to sell their holdings, triggering the next bear market, with only a few companies able to continue accumulating assets at a discount. Youssef emphasizes that companies can enhance their survival capability by adopting a prudent strategy. Reducing debt burden is key; issuing new shares is safer than debt financing and can avoid the pressure of repayment during market downturns. Debt terms should be reasonably set, such as crossing the typical four-year market cycle, to reduce liquidity risk. In asset selection, the focus should be on Crypto Assets with limited supply or blue-chip assets with long-term resilience, rather than highly volatile and potentially permanently devalued altcoins. Moreover, companies with actual business and income sources have an advantage over pure asset reserve companies, which lack continuous cash flow and rely solely on financing operations, making them more vulnerable to risks. Through responsible asset and risk management, some companies can not only withstand market downturns but even achieve counter-cyclical growth.