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Experts Warn of Price Manipulation Amid Surge of New Crypto Tokens

The cryptocurrency market has recently seen over 12,799 new tokens launched, raising concerns about potential price manipulation. Industry experts allege collusion between project teams and market makers, contributing to market volatility and an influx of low-quality assets. Centralized exchanges are accused of enabling these practices, leading to a notable fall in the market capitalization of altcoins. Despite these issues, the market continues to grow, indicating both excitement and inherent risks in this space.

The cryptocurrency market has witnessed a significant surge, with over 12,799 new tokens launched in the past year. This rapid expansion raises serious doubts regarding price manipulation, as allegations surface that project teams may be collaborating with market makers to artificially inflate token prices. Such manipulation obscures market realities, leading to increased volatility and a proliferation of low-quality assets.

Recent comments by Arthur Cheong, founder of DeFinance Capital, highlight the concerns surrounding new tokens entering the market. Cheong’s claims suggest that undisclosed partnerships between project teams and market makers compromise market integrity. This lack of transparency adversely affects traders and investors who depend on reliable data for informed decision-making.

Cheong has also addressed the role of centralized exchanges, accusing them of neglecting the issue of price manipulation. He argues that their inaction permits unreliable assets to permeate the altcoin market. Consequently, discerning quality projects has become increasingly challenging for serious investors.

A tangible effect of these practices is reflected in the altcoin market. The total market capitalization of altcoins has plunged 38.33% since the year’s beginning, deteriorating from $1.34 trillion to $961.7 billion, a significant drop over just a few months.

Despite these challenges, the crypto market continues to thrive, as evidenced by the addition of 778 new tokens within the last 30 days. Recent launches include MAGABY, ModalAI, and NILAM Resources. The Official Trump token, which gained attention after skyrocketing from $6.54 to $72.62 shortly after launch, has also seen a drastic decline, trading at approximately $8.05 after a 33% drop in the past month.

The current climate of the crypto market underscores the excitement and rapid evolution within finance, whilst simultaneously exposing notable risks linked to its swift growth and insufficient oversight.

Amina Khan is a skilled journalist and editor known for her engaging narratives and robust reporting on health and education. Growing up in Karachi, she studied at the Lahore School of Economics before embarking on her career in journalism. Amina has worked with various international news agencies and has published numerous impactful pieces, making contributions to public discourse and advocating for positive change in her community.

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