PANews reported on September 28th that according to Cointelegraph, Ray Youssef, founder of the peer-to-peer lending platform NoOnes, pointed out that the current rise of crypto asset reserve companies is similar to the investment frenzy during the dot-com bubble and carries significant market risks. He believes that although the entry of institutions marks the entry of cryptocurrencies into a mainstream asset class, most reserve companies will find it difficult to sustain and may be forced to sell their holdings, triggering the next bear market. Only a few companies will be able to continue accumulating assets at a discount.

Youssef stressed that companies can improve their survivability if they adopt prudent strategies. Reducing debt burden is key. Issuing new shares is safer than borrowing to finance, and can avoid facing debt repayment pressure during market downturns. Debt maturities should be set reasonably, such as spanning a typical four-year market cycle, to reduce liquidity risks. In terms of asset selection, focus should be placed on cryptocurrencies with a capped supply or blue-chip assets with long-term resilience, rather than altcoins that are highly volatile and may permanently depreciate. In addition, companies with actual businesses and sources of income have advantages over pure asset reserve companies, which lack continuous cash flow, rely solely on financing operations, and have weaker risk resistance. Through responsible asset and risk management, some companies can not only withstand market downturns, but even achieve growth against the trend.