How Insiders Turn Locked Tokens into Huge Profits Welcome to crime season. While retail dreams of generational wealth, insiders are cooking up a new meta, a hybrid of TradFi wrappers and crypto tokenomics, and it’s working like a charm. I already told you about 3 of the companies that recently appeared and follow this path. So let me fully explain how it works: Step 1: Find a dying public company Usually something trading on Nasdaq with a $5M–$20M market cap, barely alive. Then comes a “strategic investment” from a VC or fund, $50M, $100M, and boom, they own most of it. The company pivots into a “Crypto Treasury Company”. Step 2: Stuff the balance sheet with altcoins With the fresh capital, the company loads its balance sheet with altcoins. In some cases, insiders even sell their locked tokens to the company at a negotiated price. Imagine getting paid cash today for illiquid assets that were untradeable. Step 3: Pump the stock A press release drops: “We’re now a Web3-first treasury holding $X-token as our strategic asset.” Retail sees a listed company holding crypto → instant bullishness → stock jumps 3x. But the price increase only benefits early investors who bought at fair value. Retail FOMOs in at 3x the actual treasury value. Step 4: Exit & repeat After 3–6 months, the lock-up ends. Early insiders dump shares at a fat multiple, walk away, and rinse-repeat the scheme with a new company. Retail holds the bag, overvalued shares backed by stale token positions. Case study: MCVT & SUI MCVT is trying to become a treasury wrapper for $SUI with $450M incoming. But how much of that goes to buying actual tokens vs. unlocking discounted SUI from Foundation insiders? If most of it buys locked tokens at a discount, retail is effectively subsidizing insider exits. The core of the scam? It’s legal. It looks like innovation. But in practice? Just a shiny new wrapper to dump illiquid garbage on public markets. These Treasury Companies are TradFi’s version of liquidity farming, but instead of yield, the insiders extract exit liquidity. Final thought: This scheme isn’t just about greed; it’s about asymmetric information. Retail never sees the private terms, just the public story. And by the time you're buying the stock, the profit's already been made. Be smart, not exit liquidity. Follow me for more.