04-15-2025, 02:55 PM
Crypto ‘uninvestable’ if exchanges ignore manipulation: DeFiance CEO
<p style="float:right; margin:0 0 10px 15px; width:240px;"><img src="https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDQvMDE5NjM5MjctMGViYS03NDQxLTkzYmItODllNzFjMDY0MjMz.jpg"></p><p><p style="float:right; margin:0 0 10px 15px; width:240px;"><img src="https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDQvMDE5NjM5MjctMGViYS03NDQxLTkzYmItODllNzFjMDY0MjMz.jpg" alt="Crypto ‘uninvestable’ if exchanges ignore manipulation: DeFiance CEO"></p><p>A crypto investment executive said the biggest problem with digital asset markets is price manipulation, claiming that collusion between market makers and exchanges distorts token prices. <p>Arthur Cheong, founder of crypto investment firm DeFiance Capital, <a data-ct-non-breakable="null" href="https://x.com/Arthur_0x/status/1911646432618303610" rel="null" target="null" text="null" title="null">said</a> in an X post that market makers and crypto projects work together to create artificial prices that can be sustained for long periods. Cheong wrote: </p><blockquote>“You don’t know whether the price is a result of organic demand & supply or simply due to projects and market makers colluding to fix the price to achieve other objectives.”</blockquote><p>He added that if the industry’s players don’t step up and improve the situation, a big part of the crypto market will remain “uninvestable for the foreseeable future.”</p><template data-ct-widget="buzzsprout" data-buzzsprout-podcast-id="2096415" data-buzzsprout-episode-id="16616214"></template><h2>Centralized exchanges turning a “blind eye” </h2><p>Cheong said it was strange that centralized exchanges (CEXs) are “turning an absolute blind eye” to the issue. He described the altcoin market as a “lemon’s market,” a term in economics that describes a market where low-quality products drive out the good due to information asymmetry.</p><p>In addition, Cheong described most token generation event pricing in 2025 as an “absolute joke” where the assets’ prices went down by 70% to 90% a few months after listing. “Anyone that bought is down massively,” Cheong added. </p><p><em><strong>Related: </strong></em><a data-ct-non-breakable="null" href="https://cointelegraph.com/news/binance-kucoin-mexc-aws-outage-crypto-service-issues" rel="null" target="null" text="null" title="null"><em><strong>Binance, KuCoin, MEXC report service issues due to AWS network interruption</strong></em></a></p><h2>88% of crypto tokens listed on Binance in 2025 declined after listing </h2><p>Data compiled by crypto analyst Miles Deutscher <a data-ct-non-breakable="null" href="https://x.com/milesdeutscher/status/1911804157796958605" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/milesdeutscher/status/1911804157796958605">showed</a> that among crypto tokens listed this year on the trading platform Binance, only 3 out of 27 are performing well. This means that 88% of the tokens have declined since listing. </p><p>The price drops ranged from 19% up to 90%. Deutscher said this was the reason why retail investors were quitting. </p><figure><img alt="Cryptocurrency Exchange, Binance" src="https://s3.cointelegraph.com/uploads/2025-04/01963927-c40b-7228-b57d-7b1ee56ebc34" title=""><figcaption style="text-align: center;"><p><em>Only 3 out of 27 tokens listed in Binance in 2025 are in the green. Source: Miles Deutscher </em></p></figcaption></figure><p>A community member <a data-ct-non-breakable="null" href="https://x.com/JPEG_Yakuza_/status/1911807720875082197" rel="null" target="null" text="null" title="null">responded</a> to the data saying that this is where the industry is currently at. The X user added that they hoped Binance would realize starting at a high valuation wasn’t good for users. </p><p>Binance co-founder Changpeng Zhao previously admitted that Binance’s <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/binance-token-listing-process-flawed-cz" rel="null" target="null" text="null" title="null">listing process needs reform</a>. On Feb. 10, the former Binance CEO said that the current system is flawed and suggested that CEXs should automate listings similar to how decentralized exchanges (DEXs) work. </p><iframe width="100%" height="315" src="https://www.youtube.com/embed/6UnogdVQWrE?start=" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen loading="lazy"></iframe><p><em><strong>Magazine: </strong></em><a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/9gags-meme-bitcoin-jailed-crypto-ceo-gets-3-5m-bonus-check-asia-express/" rel="null" target="null" text="null" title="null"><em><strong>New ‘MemeStrategy’ Bitcoin firm by 9GAG, jailed CEO’s $3.5M bonus: Asia Express</strong></em></a></p><template data-name="subscription_form" data-type="markets_outlook" label="Subscription Form: Markets Outlook"></template></p>
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https://cointelegraph.com/news/crypto-un...er_inbound
<p style="float:right; margin:0 0 10px 15px; width:240px;"><img src="https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDQvMDE5NjM5MjctMGViYS03NDQxLTkzYmItODllNzFjMDY0MjMz.jpg"></p><p><p style="float:right; margin:0 0 10px 15px; width:240px;"><img src="https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDQvMDE5NjM5MjctMGViYS03NDQxLTkzYmItODllNzFjMDY0MjMz.jpg" alt="Crypto ‘uninvestable’ if exchanges ignore manipulation: DeFiance CEO"></p><p>A crypto investment executive said the biggest problem with digital asset markets is price manipulation, claiming that collusion between market makers and exchanges distorts token prices. <p>Arthur Cheong, founder of crypto investment firm DeFiance Capital, <a data-ct-non-breakable="null" href="https://x.com/Arthur_0x/status/1911646432618303610" rel="null" target="null" text="null" title="null">said</a> in an X post that market makers and crypto projects work together to create artificial prices that can be sustained for long periods. Cheong wrote: </p><blockquote>“You don’t know whether the price is a result of organic demand & supply or simply due to projects and market makers colluding to fix the price to achieve other objectives.”</blockquote><p>He added that if the industry’s players don’t step up and improve the situation, a big part of the crypto market will remain “uninvestable for the foreseeable future.”</p><template data-ct-widget="buzzsprout" data-buzzsprout-podcast-id="2096415" data-buzzsprout-episode-id="16616214"></template><h2>Centralized exchanges turning a “blind eye” </h2><p>Cheong said it was strange that centralized exchanges (CEXs) are “turning an absolute blind eye” to the issue. He described the altcoin market as a “lemon’s market,” a term in economics that describes a market where low-quality products drive out the good due to information asymmetry.</p><p>In addition, Cheong described most token generation event pricing in 2025 as an “absolute joke” where the assets’ prices went down by 70% to 90% a few months after listing. “Anyone that bought is down massively,” Cheong added. </p><p><em><strong>Related: </strong></em><a data-ct-non-breakable="null" href="https://cointelegraph.com/news/binance-kucoin-mexc-aws-outage-crypto-service-issues" rel="null" target="null" text="null" title="null"><em><strong>Binance, KuCoin, MEXC report service issues due to AWS network interruption</strong></em></a></p><h2>88% of crypto tokens listed on Binance in 2025 declined after listing </h2><p>Data compiled by crypto analyst Miles Deutscher <a data-ct-non-breakable="null" href="https://x.com/milesdeutscher/status/1911804157796958605" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/milesdeutscher/status/1911804157796958605">showed</a> that among crypto tokens listed this year on the trading platform Binance, only 3 out of 27 are performing well. This means that 88% of the tokens have declined since listing. </p><p>The price drops ranged from 19% up to 90%. Deutscher said this was the reason why retail investors were quitting. </p><figure><img alt="Cryptocurrency Exchange, Binance" src="https://s3.cointelegraph.com/uploads/2025-04/01963927-c40b-7228-b57d-7b1ee56ebc34" title=""><figcaption style="text-align: center;"><p><em>Only 3 out of 27 tokens listed in Binance in 2025 are in the green. Source: Miles Deutscher </em></p></figcaption></figure><p>A community member <a data-ct-non-breakable="null" href="https://x.com/JPEG_Yakuza_/status/1911807720875082197" rel="null" target="null" text="null" title="null">responded</a> to the data saying that this is where the industry is currently at. The X user added that they hoped Binance would realize starting at a high valuation wasn’t good for users. </p><p>Binance co-founder Changpeng Zhao previously admitted that Binance’s <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/binance-token-listing-process-flawed-cz" rel="null" target="null" text="null" title="null">listing process needs reform</a>. On Feb. 10, the former Binance CEO said that the current system is flawed and suggested that CEXs should automate listings similar to how decentralized exchanges (DEXs) work. </p><iframe width="100%" height="315" src="https://www.youtube.com/embed/6UnogdVQWrE?start=" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen loading="lazy"></iframe><p><em><strong>Magazine: </strong></em><a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/9gags-meme-bitcoin-jailed-crypto-ceo-gets-3-5m-bonus-check-asia-express/" rel="null" target="null" text="null" title="null"><em><strong>New ‘MemeStrategy’ Bitcoin firm by 9GAG, jailed CEO’s $3.5M bonus: Asia Express</strong></em></a></p><template data-name="subscription_form" data-type="markets_outlook" label="Subscription Form: Markets Outlook"></template></p>
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https://cointelegraph.com/news/crypto-un...er_inbound