Arthur Cheong, the founder of DeFiance Capital, has raised concerns about the increasing price manipulation of digital currencies, describing it as a serious threat to investor trust. In a post on X, he stated that projects and market makers are increasingly collaborating behind the scenes to maintain artificially inflated token prices. Cheong believes that centralized exchanges overlook this issue and create a market where insiders profit while investors bear the risk. He also noted that most recent token generation events have shown poor performance, with prices plummeting by 70 to 90 percent after launch. These warnings came after a 90% drop in the value of the Mantra token (OM) in less than 24 hours and a 25% decrease in the price of the Story Protocol token (IP) within an hour. Cheong said that a significant portion of the digital currency market will remain ‘uninvestable’ due to extensive price manipulation unless the industry addresses these structural deficiencies.
