Arthur Cheong, founder of DeFiance Capital, has voiced serious concerns over what he describes as rampant price manipulation in the cryptocurrency market—an issue he believes threatens the very foundation of investor trust.
In an X post, Cheong warned that many token projects now collaborate closely with market makers behind the scenes to inflate and sustain token prices artificially. According to him, this covert coordination makes it increasingly difficult for investors to discern whether a token’s price results from genuine market demand or orchestrated efforts to create an illusion of strength.
The biggest problem plaguing the liquid crypto market now is the complete blackbox of how projects and market makers can work together to create an artificial price that can sustain for a very long period.
You don’t know whether the price is a result of organic demand & supply…
— Arthur (@Arthur_0x) April 14, 2025
Expanding on this point, Cheong stated,
“The biggest problem plaguing the liquid crypto market now is the complete black box of how projects and market makers can work together to create an artificial price that can sustain for a very long period,”
emphasizing that such manipulation undermines price discovery and transparency.
Furthermore, Cheong criticized centralized exchanges for allegedly disregarding the issue. He described the current state of altcoin trading as a “lemon’s market”—a scenario where insiders profit at the expense of average investors, eroding overall confidence in the market.
In addition, he pointed out that most token generation events (TGEs) in 2024 have delivered poor outcomes for investors, with token prices plummeting by 70–90% shortly after listing, resulting in substantial losses for early investors. Cheong emphasized that without decisive action from key players in the crypto industry to tackle these structural issues, a large segment of the market could remain “uninvestable.” His comments have sparked further discussions on the necessity for improved transparency, regulatory oversight, and stronger investor protections in the crypto landscape.
Notably, Cheong’s comments followed a dramatic price crash involving the Mantra token (OM), which plummeted over 90% on April 13—from around $6.30 to under $0.50 within hours. Mantra CEO JP Mullin later attributed the collapse to forced liquidations triggered by centralized exchanges, further highlighting the growing concerns over market integrity.
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