According to Foresight News, Arthur, the founder of DeFiance Capital, has expressed concerns about the current state of liquidity in the cryptocurrency market. He highlighted the issue of collaboration between project teams and market makers to artificially maintain prices, describing the process as a 'black box.' Arthur noted that it is challenging to determine whether a coin's price is driven by genuine supply and demand or manipulated by project teams and market makers for other purposes.
He further criticized centralized exchanges (CEX) for ignoring these practices, allowing them to proliferate. Arthur pointed out that the altcoin market is becoming a space where inferior coins drive out superior ones, eroding investor confidence. He also mentioned that this year's token generation event (TGE) pricing has been problematic, with many coins experiencing a 70% to 90% drop within months of launch, leaving investors trapped.
Arthur emphasized the need for major industry players to address these issues, warning that without intervention, this segment of the market will remain uninvestable in the foreseeable future.