Warning: Crypto ‘Uninvestable’ Amid Shocking Exchange Manipulation Claims
Is your crypto portfolio at risk? A stark warning has emerged from a prominent figure in the digital asset space. Arthur Cheong, the founder of DeFiance Capital, has dropped a bombshell, claiming that crypto manipulation is rampant and, alarmingly, centralized exchanges are seemingly turning a blind eye. Could this mean a significant portion of the crypto market is becoming ‘uninvestable’? Let’s dive into the details of Cheong’s alarming statements and what it could mean for your investments.
Is Crypto Really Becoming ‘Uninvestable’ Due to Exchange Manipulation?
According to Cheong, the core issue plaguing the crypto market isn’t just volatility, but something far more insidious: exchange manipulation. He argues that a concerning level of collusion exists between market makers and crypto projects. This alleged partnership aims to artificially inflate crypto prices, creating a distorted market reality.
In his own words on X (formerly Twitter), Cheong highlights the fundamental problem: “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.” This lack of transparency casts a dark shadow over the perceived legitimacy of crypto prices and market dynamics.
Centralized Exchanges: Turning a Blind Eye to Manipulation?
Cheong doesn’t mince words when it comes to centralized exchanges (CEXs). He expresses bewilderment at their apparent inaction, stating it’s “strange” that CEXs are “turning an absolute blind eye” to this pervasive issue of exchange manipulation. This accusation raises serious questions about the regulatory oversight and integrity of these platforms, which are the primary gateways for most investors into the crypto world.
He further describes the altcoin market as a “lemon’s market,” a concept in economics where low-quality goods dominate due to information asymmetry. This paints a grim picture of the current state of many altcoins, suggesting that investors are often operating in the dark, unable to discern genuine value from artificially propped-up assets.
The 2025 Token Generation Event “Joke”
Adding fuel to the fire, Cheong criticizes the token generation event (TGE) pricing of 2025 as an “absolute joke.” He points out the drastic price drops, ranging from 70% to 90% within months of listing. This sharp decline leaves early investors, who bought into the initial hype, holding significantly devalued assets. This poor performance can severely impact confidence in DeFi investment and the broader crypto space.
Binance Listing Data: A Red Flag?
Compelling data from crypto analyst Miles Deutscher seems to corroborate Cheong’s concerns. Deutscher’s analysis reveals that a staggering 88% of crypto tokens listed on Binance in 2025 have declined in value post-listing. Out of 27 tokens analyzed, only 3 showed positive performance. The price drops were substantial, ranging from 19% to a massive 90%. This data strongly suggests a potential issue with the listing process and the subsequent price action of these tokens, potentially linked to exchange manipulation or inflated initial valuations.
| Metric | Data |
|---|---|
| Tokens Listed on Binance in 2025 | 27 |
| Tokens in Decline Post-Listing | 88% (24 out of 27) |
| Tokens Performing Well Post-Listing | 12% (3 out of 27) |
This data, visualized by Deutscher, paints a clear picture:
Retail Investors Fleeing: A Consequence of Distorted Crypto Prices?
Deutscher argues that these concerning statistics are a key reason why retail investors are leaving the crypto market. Consistent losses due to plummeting token prices, especially after investing in newly listed projects, erode trust and confidence. When investors feel they are playing in a rigged game, they are likely to withdraw their capital, hindering the long-term growth and sustainability of the crypto ecosystem.
Binance Acknowledges the Problem: Reform on the Horizon?
Interestingly, even Binance, the exchange in question, seems to recognize the need for change. Former Binance CEO Changpeng Zhao (CZ) has previously admitted that Binance’s listing process needs reform. Back in February, CZ suggested automating listings, drawing inspiration from decentralized exchanges (DEXs). Whether this reform will address the deeper concerns of crypto manipulation and artificial crypto prices remains to be seen.
Actionable Insights: Navigating the Potentially ‘Uninvestable’ Crypto Market
So, what can investors do in light of these alarming allegations of exchange manipulation and the concerning data surrounding Binance listing performance? Here are some actionable insights:
- Exercise Extreme Caution with New Listings: Be wary of investing heavily in newly listed tokens, especially on centralized exchanges, without thorough research beyond the initial hype.
- Diversify Your Portfolio: Don’t put all your eggs in one basket, especially in the altcoin market. Diversification can help mitigate risks associated with individual token price drops.
- Focus on Fundamental Analysis: Prioritize projects with strong fundamentals, real-world use cases, and transparent tokenomics rather than relying solely on hype and exchange listings.
- Explore DeFi Options Cautiously: While DeFi investment offers alternatives to centralized exchanges, it also comes with its own set of risks. Thorough research and understanding of smart contracts and protocol risks are crucial.
- Demand Transparency and Regulation: Support initiatives and voices advocating for greater transparency and stricter regulations within the crypto exchange ecosystem to combat crypto manipulation.
Conclusion: A Call for Transparency and Integrity in Crypto
Arthur Cheong’s warning serves as a powerful wake-up call for the crypto industry. The allegations of exchange manipulation and artificially inflated crypto prices are serious and, if left unaddressed, could indeed render a significant portion of the market “uninvestable.” For crypto to reach its full potential and gain mainstream trust, transparency, and integrity must be prioritized. Exchanges and project developers need to take proactive steps to ensure fair market practices and restore investor confidence. The future of DeFi investment and the broader crypto market hinges on addressing these critical issues head-on.
