## Bloomberg Exposes Risks in DAT Companies' Fundraising for Crypto Investors Bloomberg has highlighted concerns regarding Digital Asset Treasury (DAT) companies and their fundraising methods, particularly the risks to individual investors. Citing a 10x Research report, Bloomberg emphasizes how these methods can shift financial burdens onto retail participants. DAT companies, defined as publicly listed entities primarily holding cryptocurrencies, are increasingly utilizing "in-kind contribution" structures. This involves contributing their own tokens, rather than cash, for fundraising purposes. ### Liquidity and Valuation Concerns The core issue lies in the nature of these tokens. Often unlisted or possessing low liquidity, objectively valuing them becomes problematic. This lack of transparency can lead shareholders, especially individual investors, to invest at inflated prices, far exceeding the actual market value. ### Investor Losses and Due Diligence Bloomberg estimates that investors in this model have already incurred losses totaling around $17 billion. Therefore, potential investors are strongly advised to conduct thorough due diligence. Checking the token structure, contribution method, and post-listing liquidity risk are crucial steps before investing in DAT companies. Understanding these factors is essential to mitigate potential financial losses in the volatile cryptocurrency market. ```