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The founder of a leading digital active investment company has raised significant concerns concerning the reliability of crypto tokens prices, citing generalized manipulation between market manufacturers and centralized exchanges (CEX).
Arthur Cheong, CEO of Defiance Capital, declared Via the social media platform X that the cryptography market suffers from a lack of transparency, the artificially supported prices posing serious risks for investors.
According to Cheong, the coordination between crypto projects and market manufacturers has created a “black box” scenario in which external observers, including retail and institutional investors, have trouble determining whether the prices of tokens reflect real supply and demand or are the product of manipulated mechanisms.
Cheong stressed that such practices threaten to undermine market confidence and could ultimately make the market broader of “unforgettable” cryptography.
In his statement, Cheong criticized the centralized exchanges for turning the eyes on the problem, suggesting that uncontrolled behavior raises confidence in the Altcoin market.
The biggest problem that afflicted the liquid cryptography market is now the complete black box of how projects and market manufacturers can work together to create an artificial price that can maintain for a very long period.
You do not know if the price is the result of biological demand and supply …
– Arthur (@ arthur_0x) April 14, 2025
He underlined the trend of tokens launched through events of generation of tokens (TGES) losing value quickly. In many cases, newly listed tokens have decreased by 70% to 90% within a few months of their initial version. Cheong noted:
If the major players in the industry do not improve this, a large part of the market will remain useless in the predictable future.
Supporting Cheong’s remarks, the cryptographic analyst Miles Deutscher shared data indicating that only 3 of the 27 cryptographic tokens listed on Binance this year have managed to maintain a positive price action.
The remaining 88% experienced significant drops, with losses ranging from 19% to 90%. Deutscher highlighted this trend as a factor contributing to the decline in the participation of retail investors.
These data, including Cheong’s declarations, have sparked interesting reactions from the cryptographic community. Some users have called Binance and other exchanges to do the right thing and “require more transparency and disclosure” from projects before the list.
The CEXs should require more transparency and disclosure before listing things. Hey @binance @coinbase Maybe the Szn crime with Trump. But the party will end sooner or later, and in the EU, it will become stricter, which could just as well start to comply. You give a bad reputation to the industry.
– xkix – e / add (zack) (@ 0x_zak) April 14, 2025
Meanwhile, the other side of the community’s reactions believes that most cryptocurrencies are worthless from the start, but with speculation supporting their initial increase, they are condemned to fail at the end. X User known as Kun wrote:
This is not a problem because if it was worth it, you buy it if the value of a cryptographic corporate token is based on the price that does not invest but that the speculation that most tokens are intrinsically worthless and people do not know why they should have anything.
Star image created Dall-e, tradingView graphic
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