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Crypto ‘uninvestable’ if exchanges ignore manipulation: DeFiance CEO

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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. 

Arthur Cheong, founder of crypto investment firm DeFiance Capital, said 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: 

“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.”

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.”

Centralized exchanges turning a “blind eye” 

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.

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. 

Related: Binance, KuCoin, MEXC report service issues due to AWS network interruption

88% of crypto tokens listed on Binance in 2025 declined after listing 

Data compiled by crypto analyst Miles Deutscher showed 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. 

The price drops ranged from 19% up to 90%. Deutscher said this was the reason why retail investors were quitting. 

Only 3 out of 27 tokens listed in Binance in 2025 are in the green. Source: Miles Deutscher 

A community member responded 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. 

Binance co-founder Changpeng Zhao previously admitted that Binance’s listing process needs reform. 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. 

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