Price Manipulation Still Plagues Crypto Markets, Says DeFiance Capital Founder
Arthur Cheong, founder of DeFiance Capital, has raised concerns about pervasive price manipulation within the digital asset space, warning that such practices could render large segments of the market “uninvestable.”
In a recent post on X (formerly Twitter), Cheong alleged that market makers and crypto projects often collaborate to artificially maintain token prices, blurring the line between organic market demand and coordinated price fixing.
“You can’t tell whether a token’s price is driven by genuine supply and demand or if it’s being manipulated by behind-the-scenes collusion between projects and market makers,” Cheong wrote.
He emphasized that unless key industry players address this manipulation, investor confidence will continue to erode, particularly in the altcoin sector.
CEXs Accused of Turning a Blind Eye
Cheong criticized centralized exchanges (CEXs) for allegedly ignoring these practices, calling it “bizarre” that they aren’t taking stronger actions. He likened the current altcoin landscape to a “lemon market”—a term in economics that refers to markets where low-quality products dominate due to a lack of transparent information.
He also called out token generation events (TGEs) in 2025, describing their initial pricing as “a complete joke.” According to Cheong, many newly listed tokens have dropped in value by 70% to 90% within just months of their debut. “Anyone who bought in early is sitting on massive losses,” he noted.
88% of New Binance Listings Are in the Red
Backing up Cheong’s claims, crypto analyst Miles Deutscher recently shared data showing that 88% of tokens listed on Binance in 2025 have declined in value. Only 3 out of 27 new tokens on the platform are currently performing positively, with losses ranging from 19% to a staggering 90%.
Retail investors are increasingly exiting the space, frustrated by high initial valuations followed by steep declines. One community member responded to the data by urging Binance to reconsider its listing strategy, warning that inflated initial valuations are hurting users.
Even Binance’s co-founder, Changpeng Zhao, has acknowledged the issue. In February, Zhao admitted that the exchange’s current listing process is flawed and proposed moving toward a more automated system, akin to how decentralized exchanges (DEXs) operate.
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