In the last 24 hours, the crypto market has seen prices remain neutral. Although Bitcoin has raised itself to the $85K level, the altcoin sector is also reflecting modest positive altercations. On the other hand, several whales began dumping Ethereum over the past week, specifically in the past day. This has given space to fresh market speculations.
On the other hand, native crypto investment firm DeFiance Capital founder Arthur raised some interesting questions on current crypto market operations. Over the past year, several DeFi projects, including some existing leading firms such as OpenSea, have launched tokens.
However, apart from these legit projects, there were also other numerous rugpull incidents. Arthur points to these incidents and raises the unasked question – the collaboration between projects and market makers and its resulting in huge consequences for market liquidation.
He discussed the colluding of projects with market makers and their fixing prices for tokens. These artificial prices last for a long period of time, however, they fall rapidly. This has resulted in significant losses for many investors over the past year. The projects and market makers work to achieve other objectives while investors bear the brunt of it.
How are CEXs Reacting to the Collaboration of Projects & Market Makers?
Another major issue that Arthur points to is how centralized exchanges show no concern towards these incidents. The projects and market makers that fix artificial prices have rendered confusion in the crypto market. Community members are unable to distinguish between prices resulting from organic demand & supply and other indirect sources.
Moreover, he stated that these actions are rendering the altcoin market to the status of a lemon market. They reduce authenticity to the overall mainstream viewpoint of projects and can also result in investors losing confidence. These actions can be construed also as the misuse of the power of decentralization.
Arthur concluded by stating that leading institutions must take action against such projects and market makers. The past day’s Mantra crash also raised speculations of such an association.
