The post The Shocking $17 Billion Risk Shift To Retail Investors appeared on BitcoinEthereumNews.com.

Have you ever wondered how some cryptocurrency investment opportunities seem too good to be true? According to a recent Bloomberg analysis, DAT financing models are creating a dangerous situation where retail investors bear the brunt of massive financial risks. The shocking reality is that these structures have already cost everyday investors approximately $17 billion. What Are DAT Financing Models and Why Should You Care? DAT financing models refer to the funding strategies used by Digital Asset Treasury companies. These are publicly traded firms that hold significant cryptocurrency reserves as corporate assets. However, the way these DAT financing models operate has raised serious concerns among financial experts and regulators alike. The core issue lies in how these companies raise capital. Instead of traditional cash investments, they’re increasingly using what’s called “in-kind contribution” structures. This means they contribute their own tokens rather than actual money during fundraising rounds. How Do DAT Financing Models Transfer Risk to Retail Investors? The problem with current DAT financing models becomes clear when we examine the token valuation process. Many tokens used in these contributions share common characteristics that create substantial risk: They are often unlisted or have extremely low liquidity Objective valuation becomes nearly impossible Shareholders may invest at inflated prices Market corrections reveal the true, lower value When the market eventually corrects these overvaluations, retail investors absorb the majority of losses. The Bloomberg report, citing research from 10x Research, highlights that this isn’t just theoretical – it’s already happened on a massive scale. What $17 Billion in Losses Reveals About DAT Financing Models The staggering $17 billion in estimated losses demonstrates the real-world impact of flawed DAT financing models. This isn’t minor market fluctuation; it represents systematic risk transfer from corporations to individual investors. Moreover, the structure of these DAT financing models creates information asymmetry.…

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Filed under: News - @ November 15, 2025 6:26 am