- Crypto executive Arthur Cheong highlighted price manipulation as the biggest issue in digital asset markets, pointing to collusion between market makers and exchanges.
- Data shows 88% of tokens listed on Binance in 2025 have declined after listing, with losses ranging from 19% to 90%.
- Cheong warns that without industry intervention, a significant portion of the crypto market will remain “uninvestable” due to artificial pricing practices.
Arthur Cheong, founder of crypto investment firm DeFiance Capital, has identified price manipulation as the most significant problem plaguing digital asset markets. In a recent post on X, Cheong claimed that collusion between market makers and exchanges creates artificial token prices that can be maintained for extended periods, seriously distorting market dynamics.
“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,” Cheong wrote in his post. He warned that without industry intervention, large segments of the crypto market will remain “uninvestable for the foreseeable future.”
Cheong expressed surprise that centralized exchanges (CEXs) are “turning an absolute blind eye” to these practices. He characterized the altcoin market as a “lemon’s market” – an economic concept describing situations where information asymmetry allows low-quality products to drive out good ones. The investment executive also criticized token generation event pricing in 2025 as an “absolute joke,” noting that many assets lost 70% to 90% of their value within months of listing.
Data Reveals Widespread Losses on New Token Listings
Supporting Cheong’s concerns, crypto analyst Miles Deutscher shared data showing that among 27 tokens listed on Binance in 2025, only three maintained positive performance. This means a staggering 88% of new listings declined after their debut, with losses ranging from 19% to 90%.
Deutscher suggested these dismal statistics explain why retail investors are exiting the market. One community member responded to the data by expressing hope that Binance would recognize that high initial valuations harm users.
Calls for Exchange Reform
The issue has even been acknowledged by Binance co-founder Changpeng Zhao. Earlier this year, on February 10, the former Binance CEO admitted that the platform’s listing process needs reform, describing the current system as flawed. Zhao suggested that centralized exchanges should automate their listings similar to the approach used by decentralized exchanges (DEXs).
These criticisms highlight growing concerns about transparency and price integrity in cryptocurrency markets, as industry insiders call for structural reforms to protect investors and restore confidence in digital asset trading.
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