Is Crypto Pricing Being Artificially Suppressed by Centralized Platforms?
- Analyst Martyparty says over 250 CEXs and 100+ off-chain platforms are unregulated for asset rehypothecation.
- Lack of transparency could be contributing to long-term price suppression and market distortion.
- The analyst suggests these centralized entities undermine the core principles of decentralization.
There is a growing concern about centralized platforms possibly distorting crypto market prices. These concerns center around rehypothecation, a practice that remains largely unregulated. Without oversight, derivative crypto assets may outnumber the real ones, creating risks for retail traders and long-term investors.
Centralized Platforms Under Scrutiny
Concerns about crypto price suppression have resurfaced following a post on X by crypto analyst Martyparty. He claimed that centralized exchanges (CEXs), Layer 2 (L2) sequencers, and permissioned bridges contribute to market manipulation.
The core issue lies in their use of customer-deposited assets for, essentially reusing the same assets to back multiple obligations or synthetic tokens.
Related: South Korea to Investigate AVAIL Altcoin Over Price Manipulation Concerns
According to Martyparty, t…
The post Is Crypto Pricing Being Artificially Suppressed by Centralized Platforms? appeared first on Coin Edition.
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Is Crypto Pricing Being Artificially Suppressed by Centralized Platforms?
- Analyst Martyparty says over 250 CEXs and 100+ off-chain platforms are unregulated for asset rehypothecation.
- Lack of transparency could be contributing to long-term price suppression and market distortion.
- The analyst suggests these centralized entities undermine the core principles of decentralization.
There is a growing concern about centralized platforms possibly distorting crypto market prices. These concerns center around rehypothecation, a practice that remains largely unregulated. Without oversight, derivative crypto assets may outnumber the real ones, creating risks for retail traders and long-term investors.
Centralized Platforms Under Scrutiny
Concerns about crypto price suppression have resurfaced following a post on X by crypto analyst Martyparty. He claimed that centralized exchanges (CEXs), Layer 2 (L2) sequencers, and permissioned bridges contribute to market manipulation.
The core issue lies in their use of customer-deposited assets for, essentially reusing the same assets to back multiple obligations or synthetic tokens.
Related: South Korea to Investigate AVAIL Altcoin Over Price Manipulation Concerns
According to Martyparty, t…
The post Is Crypto Pricing Being Artificially Suppressed by Centralized Platforms? appeared first on Coin Edition.
Read More
CoinDCX Hacked for $44.2 Million ; Breach Exposed by On-Chain Investigator After 17-Hour Silence