The cryptocurrency market is currently facing a significant challenge that could deter potential investors. Arthur Cheong, the founder of DeFiance Capital, has recently highlighted the issue of price manipulation rampant in digital asset markets. In a recent statement on X, he emphasized that collusion between market makers and exchanges results in artificially distorted token prices, which compromises the integrity of these assets.
Cheong pointed out, “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.” This uncertainty casts doubt on the viability of investment in this space. As he rightly mentioned, unless key players in the industry step up and address these concerns, a significant portion of the crypto market may remain “uninvestable for the foreseeable future.”
Centralized Exchanges: Ignoring the Issues
One of the more troubling observations made by Cheong is the apparent indifference of centralized exchanges (CEXs) to these manipulative practices. He coined the altcoin market as a “lemon’s market,” a term from economics suggesting that poor-quality products drive out good ones due to a lack of transparency. This desperate situation has led to widespread disillusionment among investors.
Cheong also criticized the pricing of token generation events this year. He described it as an “absolute joke,” noting that many assets saw a dramatic decline of 70% to 90% merely months after being listed. “Anyone that bought is down massively,” he stated, further underscoring the market’s volatility and risks.
Addressing Declines in Token Performance
According to data compiled by crypto analyst Miles Deutscher, it is reported that 88% of crypto tokens listed on Binance in 2025 have experienced price declines after their listing. Out of 27 tokens, only three are performing well, with price drops reported to be as high as 90%. This alarming statistic reveals the precariousness of investing in the current environment and has led many retail investors to reconsider their involvement in the market.
A community member on X remarked, “This is where the industry is currently at,” expressing hope that exchanges like Binance would recognize the detrimental impact of initiating listings at inflated valuations. Changpeng Zhao, co-founder of Binance, has previously acknowledged the flaws in their listing process and suggested an overhaul that mimics the more automated listings of decentralized exchanges (DEXs).
As the crypto market continues to evolve, the demand for transparency and fair trading practices has never been more critical. The community hopes that industry leaders will respond to these alarming trends and take meaningful steps to restore investor confidence. Without significant changes, the future of crypto investment may remain unstable and uninviting.
