Your Favorite DAT May Not Be Safe, CZ Warns of Need for Third Party Audits As 'Bubble Bursts'

Core Insights - The digital asset treasury (DAT) sector is experiencing significant turmoil, highlighted by the sudden disappearance of QMMM, raising concerns about the stability and legitimacy of this market segment [1][2][7]. Group 1: Market Dynamics - The collapse of QMMM Holdings, which had announced a $100 million DAT, symbolizes the growing unease surrounding DATs, as its stock surged over 1,700% before its abrupt decline [3][4]. - Many DATs are now trading below the value of their underlying crypto assets, indicating a potential end to the previous boom [2][6]. Group 2: Calls for Accountability - Binance founder Changpeng Zhao (CZ) has emphasized the necessity for firms to adopt third-party audits and custodians to restore trust in the DAT sector [2][4][7]. - The QMMM incident has crystallized long-standing risks associated with DATs, leading CZ to declare that audits will be a prerequisite for future investments in BNB-linked DATs [5][6]. Group 3: Industry Sentiment - Analyst Tom Lee noted that the momentum for DAT launches has significantly diminished, suggesting that many firms were designed to replicate successful strategies but are now struggling [8].