Crypto ‘Uninvestable’ if Exchanges Ignore Price Manipulation, Warns DeFiance Capital CEO

Price Manipulation Threatens Crypto’s Credibility, Says DeFiance Capital Founder

The integrity of the crypto market is under fire once again as Arthur Cheong, founder of investment firm DeFiance Capital, called out the rampant price manipulation plaguing the industry. In a recent post on social platform X, Cheong warned that the collusion between market makers, crypto projects, and centralized exchanges (CEXs) is making a large part of the digital asset market "uninvestable."

“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 stated.

Centralized Exchanges Accused of Enabling Manipulation

Cheong criticized centralized exchanges for what he described as willful ignorance toward manipulative practices. He likened the altcoin market to a “lemon’s market” — an economic term describing environments where lack of transparency allows low-quality offerings to dominate, pushing out better-quality investments.

He further slammed the pricing strategies seen during Token Generation Events (TGEs) in 2025, calling them an "absolute joke." According to Cheong, many assets plummeted by 70% to 90% within months after being listed, leaving early buyers heavily underwater.

88% of New Tokens on Binance in 2025 Are Down

Backing Cheong’s concerns, crypto analyst Miles Deutscher shared data revealing that 88% of tokens listed on Binance in 2025 have declined in price since their listing. Out of 27 tokens tracked, only 3 showed any positive performance. The losses ranged from 19% to as much as 90%, raising questions about listing standards and investor protections.

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

Retail traders, once the backbone of the crypto boom, are now stepping away due to these steep declines. One community member remarked that inflated valuations at launch were harming users and driving long-term participants away.

Binance Admits Listing Process Needs Reform

Even Binance co-founder and former CEO Changpeng Zhao (CZ) has acknowledged issues with the platform’s token listing process. In a February 10 statement, CZ admitted that the current system is flawed and hinted at automating listings, similar to decentralized exchanges (DEXs), to reduce human bias and manipulation.

“The current system is flawed,” CZ said, calling for more transparency and fairness in token onboarding.

Conclusion: A Market at a Crossroads

As institutional investors eye blockchain and digital assets for long-term growth, the industry's credibility remains at risk due to unregulated practices and artificial pricing mechanisms. Cheong’s remarks serve as a wake-up call for exchanges, developers, and regulators alike.

Without reform, the crypto market could lose investor trust — turning a promising financial revolution into a speculative playground riddled with hidden risks.