<ul data-eligibleForWebStory="false"><li>Franklin Templeton analysts warn of risks associated with the rise of corporate crypto treasuries, highlighting the threat of a negative feedback loop if the crypto market experiences a sustained downturn.</li><li>The analysts caution that the trend of companies adding digital assets to their balance sheets poses systemic risks due to potential forced liquidation in case of market downturns, leading to a cascading cycle of fear and losses.</li><li>This strategy, popularized by early adopters like MicroStrategy, involves raising capital to buy and hold digital assets like Bitcoin, Ethereum, Ripple, and Solana; risking negative impacts on shareholder value and corporate growth during market volatility.</li><li>Companies like Metaplanet have joined the corporate Bitcoin accumulation trend, aspiring to hold large amounts of BTC, but the practice raises concerns about potential disruption in case of market downside.</li></ul>

Franklin Templeton Cautions Against ‘Feedback Loop’ Risks in Crypto Treasury Sector

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