Up Nearly 1,000% in Under Three Weeks? This Monster Stock Halted by SEC

The U.S. Securities and Exchange Commission (SEC) has urgently suspended trading of QMMM Holdings Ltd., a Nasdaq-listed company, after its stock surged nearly 1,000% in less than three weeks.  

The SEC stated that the digital media advertising company’s stock price may have been manipulated by social media promoters.  

Earlier this month, QMMM announced plans to establish a “diversified cryptocurrency treasury” with an initial scale of $100 million, targeting assets like Bitcoin, Ethereum, and Solana.

The company also said it would pursue a “strategic entry into the cryptocurrency space” based on AI and blockchain technology applications. Since the announcement, QMMM’s stock has skyrocketed 959%.

Unusual Hype  

On Monday, the SEC explained that “anonymous individuals” posting buy recommendations for QMMM on social media likely influenced the stock price. The regulator noted that the trading suspension is temporary, set to end at 11:59 p.m. ET on October 10.  

Cryptocurrency treasury companies, which accumulate and manage various tokens, have gained popularity this year. Some have benefited from this shift, but not all have seen massive stock gains.  

On the same day, the SEC halted trading of another related stock, Smart Digital Group Ltd., for similar reasons, with the suspension also ending at 11:59 p.m. ET on October 10.

Like QMMM, Smart Digital announced last week it was building a “diversified crypto asset pool” focused on Bitcoin and Ethereum. However, its stock has plummeted since the news.  

The SEC’s actions reflect its focus on cracking down on social media hype tied to digital assets, a priority under both the Trump and Biden administrations.$QMMM