Is the alt season coming for US stocks? SUI coin skyrocketed 700%, and Taiwanese venture capital is joining in!

After the success of Bitcoin asset reserve company Strategy (formerly MicroStrategy), a new wave has swept through the cryptocurrency market: incorporating crypto assets into the balance sheets of publicly traded companies, hoping to boost stock prices through the "coin-stock linkage" effect. Now, this effect has spread from Bitcoin (BTC) and Ethereum (ETH) to other altcoins. Altcoins including Solana (SOL), Sui (SUI), Hedera (HBAR), and Ethena (ENA) have all sought to go public through this channel, raising funds of up to 1.25 billion USD. Among them, Sui's stock listing saw a staggering increase of 700% on its first day, even attracting the participation of Taiwanese venture capital institutions, which raises the question: is a new "alt season" unfolding in the U.S. stock market?

Sui Asset Reserve Company: Participation of Taiwanese Venture Capital and Astonishing Pump

Mill City Ventures (NASDAQ: MCVT) recently announced a private fundraising of approximately $450 million, which will be used to establish a SUI asset reserve. The transaction is planned to be completed by the end of this month, led by the London-based proprietary hedge fund and blockchain venture capital firm Karatage. Other investors include Big Brain Holdings, Galaxy Digital, Pantera Capital, Electric Capital, GSR, Selini, Protagonist, ParaFi Capital, Borderless, dao5, and the notable Taiwanese venture capital firm Comma3 Ventures.

98% of the net proceeds from the private placement will be used to purchase SUI, and 2% will be used to support the company's short-term loans. After the transaction is completed, Karatage co-founder Marius Barnett will serve as the chairman of the board, another co-founder Stephen Mackintosh will serve as the Chief Investment Officer, and Dana Wagner, a board member of Coinbase Custody Trust Company, will serve as an independent director. It is worth noting that Karatage has previously invested in agreements on Sui, including Walrus and Suilend.

After the news broke, SUI coin stocks achieved an astonishing 700% pump on the first day of listing, sparking heated discussions in the market. This not only proves the market's enthusiasm for this "coin-stock linkage" model but also demonstrates the potential explosive power of alts in the traditional capital market.

Hedera Public Chain Also Plays Asset Reserves: A New Strategy for Established Public Chains

In addition to SUI, Canadian public company Immutable Holdings (ticker HOLD) has also announced that it holds 48 million HBAR (the native token of the Hedera network). The company stated that it will continue to increase its holdings depending on the situation, mainly focusing on the Hedera ecosystem. Although many users may feel unfamiliar with the Hedera public chain, in fact, Hedera is a token ranked in the top 16 by market capitalization and is an established public chain that has gone through more than one cycle. Jordan Fried, the chairman of Immutable Holdings, is a member of the Hedera founding team and is responsible for international business development.

The company stated that HBAR is a high-quality digital asset with long-term potential, characterized by enterprise-level performance, low transaction costs, low carbon operations, and the degree of adoption in both enterprise and public sector applications, as well as Hedera's predictable fee structure, stable throughput, and decentralized governance model. This indicates that even relatively mature public chains are beginning to attempt to attract the attention of traditional capital through this asset reserve model and to assign new value to their tokens.

Potential Impacts and Risks of the US Stock Market "alt season"

The trend of incorporating altcoins into the balance sheets of publicly listed companies undoubtedly brings a new "alt season" vibe to the US stock market. Its potential impacts include:

Bringing new liquidity to alts: The influx of funds from traditional capital markets will provide stronger liquidity and market depth for alts.

Enhancing the exposure and recognition of alts: The endorsement of listed companies helps to increase the visibility and recognition of alts among mainstream investors.

The expansion of the "coin-stock linkage" effect: The emergence of successful cases will encourage more listed companies to follow suit, further amplifying the influence of the "coin-stock linkage."

However, this wave also comes with significant risks:

Volatility Risk: The price volatility of alts is usually much higher than that of Bitcoin, and incorporating them into the balance sheet will expose listed companies to greater market risks.

Valuation bubble: The surge in stock prices may be more based on speculative sentiment rather than improvements in the fundamentals of the business, posing the risk of a valuation bubble.

Regulatory Uncertainty: The regulatory environment for altcoins remains unclear, and potential tightening of regulations could impact related listed companies.

The inversion of priorities in "listing for coins": If a company makes purchasing alts its main business rather than a supplement to its core operations, it could lead to a reversal of the company's operational priorities.

The SUI coin's stock surged by 700% on its listing day, along with the participation of Taiwanese venture capital, marking the increasing influence of altcoins in the US stock market. This wave of "coin-stock linkage" undoubtedly brings new opportunities to the Crypto Assets market and injects new vitality into the traditional capital market. However, investors must remain vigilant while chasing high returns, fully assessing the high volatility of alts, regulatory uncertainties, and potential valuation bubble risks. This "alt season" in the US stock market is still awaiting time to verify whether it is the beginning of a long-term trend or a brief speculative frenzy.