ARE MARKET MAKERS MANIPULATING 78% OF NEW CRYPTO LISTINGS?

Last updated: June 19, 2025, 20:35 | Written by: Mike Novogratz

Are Market Makers Manipulating 78% Of New Crypto Listings?
Are Market Makers Manipulating 78% Of New Crypto Listings?

The world of cryptocurrency is known for its volatility and, unfortunately, its susceptibility to manipulation. During a primary listing, a market maker or MM takes a large percentage of a token s circulating supply and puts it up for sale. This is done on an exchange s pre-market order book, allowing MMs to place liquidity ahead of public trading. The goal is to ensure sufficient liquidity for efficient price discovery when the market opens.One question that frequently surfaces among investors and enthusiasts is: Are market makers manipulating 78% of new crypto listings? This suspicion arises from the seemingly ubiquitous pattern of newly listed tokens experiencing a meteoric rise followed by a precipitous crash, leaving many investors holding the bag. Market Makers,ICOs. Cryptocurrencies. Are market makers manipulating 78% of new crypto listings? 2025 TOKEN WHEN APRIL GME. By Cointelegraph. Created 4 months agoBut who's really pulling the strings behind the curtain?The answer often points to market makers (MMs), entities contracted by crypto projects to manage the initial liquidity of tokens when they debut on exchanges.Their primary role is to ensure smooth trading and price discovery, but recent analysis suggests that a significant percentage of new listings might be marred by mismanagement or, worse, manipulation.This article dives deep into the murky waters of crypto listings, examining the role of market makers, exploring evidence of manipulation, and offering insights for navigating this risky landscape. Are market makers manipulating 78% of new crypto listings? ٢٥/٠٦ ٠٠:٤٧ One formula indicates that up to 78% of new token listings since April 2025 have been conducted badly.We'll uncover the potential red flags and empower you with knowledge to make more informed decisions in the often-turbulent crypto market.

Understanding the Role of Market Makers in Crypto Listings

Market makers are essential participants in any financial market, and the crypto space is no exception. The answer is market makers, the companies that crypto projects retain to manage the tokens (or liquidity) initially used for trading when they re listed on new exchanges.The transition from private to public market trading via primary listings for digital assets is analogous to an initial public offering (IPO) in traditional securitiesTheir core function is to provide liquidity, ensuring that there are always buyers and sellers available to facilitate trades.This is particularly crucial during a primary listing, the initial launch of a token on an exchange. Ambala News in Hindi (अम्बाला समाचार): पढ़ें 6 जून रात 3 बजे के ताज़ा समाचार, देश की न.1 न्यूज़ एप्प दैनिक भास्कर पर. Read 6 June 3AM Latest Ambala News @Dainik Bhaskar.Without sufficient liquidity, a token's price can become highly volatile and unpredictable, deterring potential investors and hindering its long-term success.

The Pre-Market Order Book

During a primary listing, the market maker typically acquires a substantial portion of the token's circulating supply. Are market makers manipulating 78% of new crypto listings? One formula indicates that up to 78% of new token listings since April 2025 have been conducted badly.This inventory is then strategically placed on the exchange's pre-market order book.By doing so, MMs aim to establish a base level of liquidity before public trading commences, enabling efficient price discovery as the market opens. Market-making giant Citadel Securities is reportedly looking into becoming a liquidity provider for major crypto exchanges, pivoting from its previously cautious position on retail crypto trading.This process is analogous to an Initial Public Offering (IPO) in traditional securities, where underwriters play a similar role in managing the initial distribution of shares.

Ensuring Liquidity and Efficient Price Discovery

The ultimate goal of a market maker is to create a stable and orderly trading environment. Are market makers manipulating 78% of new crypto listings? One formula indicates that up to 78% of new token listings since April 2025 have been conducted badly. Why do market makers seem to be indifBy constantly quoting bid and ask prices, they narrow the spread between buying and selling prices, reducing transaction costs for traders.A well-functioning market maker ensures that large orders can be executed without causing significant price fluctuations.Ideally, this benefits both the project listing the token and the investors participating in the market. During a primary listing, a market maker or MM takes a large percentage of a token's circulating supply and puts it up for sale. This is done on an exchange s pre-market order book, allowing MMs to place liquidity ahead of public trading. The goal is to ensure sufficient liquidity for efficient price discovery when the market opens.However, the power wielded by market makers can also be abused.

Evidence of Manipulation: The 78% Statistic

A recent study has sent ripples through the crypto community, suggesting that approximately 78% of Initial Exchange Offerings (IEOs) since April 2025 have been poorly managed, potentially indicating manipulation by market makers. 2.3M subscribers in the ethtrader community. Welcome to /r/EthTrader, a 100% community driven sub. Here you can discuss Ethereum news, memesThis alarming statistic raises serious questions about the integrity of the listing process and its implications for both short-term traders and long-term holders (hodlers) of crypto tokens.

What Does ""Poorly Managed"" Really Mean?

The term ""poorly managed"" can encompass a range of issues, from incompetence to outright fraudulent activity.Some common signs of mismanagement include:

  • Excessive Volatility: Unnaturally large price swings immediately after listing, often followed by a steep decline.
  • Low Trading Volume: Despite the presence of a market maker, trading volume remains consistently low, suggesting artificial activity.
  • Large Sell Walls: The sudden appearance of massive sell orders designed to suppress the price and scare away potential buyers.
  • Unjustified Price Pumps: Rapid price increases with no apparent fundamental reason, followed by an equally rapid correction.

Why Are Market Makers Seemingly ""Indifferent""?

The question of why market makers might be acting ""indifferently"" is complex.Several potential factors could contribute to this behavior:

  • Lack of Regulatory Oversight: The crypto market is still relatively unregulated compared to traditional finance, creating opportunities for unscrupulous actors to exploit the system.
  • Conflicts of Interest: Market makers may have financial incentives that are misaligned with the interests of token holders, such as earning fees based on trading volume regardless of price performance.
  • Inexperience and Lack of Expertise: Not all market makers possess the necessary skills and knowledge to effectively manage liquidity, particularly for volatile crypto assets.
  • Intentional Manipulation: In the worst-case scenario, market makers may be deliberately manipulating prices for their own profit, engaging in activities like pump-and-dump schemes.

Pump-and-Dump Schemes and the Role of Market Makers

One of the most concerning aspects of potential market maker manipulation is the involvement in pump-and-dump schemes.These schemes involve artificially inflating the price of a token through coordinated buying activity (the ""pump""), followed by a rapid sale of the holdings at the inflated price (the ""dump""). To avail any scheme or service, Please visit. www.saral.haryana.gov.in. For any queries related to schemes/services, please call (8am to 8pm- Monday to Saturday)This leaves unsuspecting investors holding tokens that are now worth significantly less.

Identifying Potential Pump-and-Dump Schemes

While it can be difficult to definitively identify a pump-and-dump scheme, there are several warning signs to look out for:

  1. Sudden and Unexplained Price Surge: A rapid increase in price with no clear news or fundamental developments to justify it.
  2. High Trading Volume: A surge in trading volume accompanying the price increase.
  3. Aggressive Promotion: Increased promotion of the token on social media and online forums.
  4. Limited Information: A lack of transparency about the project's team, technology, or business model.
  5. Unrealistic Promises: Exaggerated claims about the token's potential or future value.

How Market Makers Can Facilitate Pump-and-Dumps

Market makers can play a role in pump-and-dump schemes by:

  • Creating Artificial Demand: By placing buy orders at increasing prices, they can create the illusion of strong demand and attract more investors.
  • Supplying Tokens for the Dump: They can then sell their holdings at the inflated price, profiting from the scheme while leaving other investors holding the bag.
  • Obscuring the Source of the Activity: Their involvement can make it difficult to trace the origin of the pump and dump, protecting the perpetrators from scrutiny.

Examples of Crypto Manipulation and the Importance of Due Diligence

Unfortunately, the crypto space is riddled with examples of manipulation, highlighting the importance of conducting thorough due diligence before investing in any token. Related: Are market makers manipulating 78% of new crypto listings? These investors are not just throwing money at memes they are leveraging social media and community engagement to drive demand and boost value. Memecoins vs. traditional finance. Memecoins are all about agility and innovation qualities traditional finance lacks.While it's impossible to name specific examples without facing potential legal repercussions, it's crucial to be aware of the types of schemes that have occurred.

The Case of [Example Case Redacted]

In a now infamous case, a promising crypto project [ details redacted to avoid legal issues].

The Importance of Research and Critical Thinking

These examples underscore the importance of conducting independent research and exercising critical thinking when evaluating crypto projects.Don't rely solely on information provided by the project itself or by online influencers.Look for objective analyses from reputable sources and always be skeptical of unrealistic promises.

How to Protect Yourself from Market Maker Manipulation

While it's impossible to completely eliminate the risk of manipulation, there are several steps you can take to protect yourself:

Conduct Thorough Research (DYOR)

Do Your Own Research (DYOR) is the golden rule of crypto investing.Before investing in any token, take the time to understand the project's fundamentals, team, technology, and market potential. One formula indicates that up to 78% of new token listings since April 2025 have been conducted badly. Why do market makers seem to be indifferent? Risk warning: Investment needs to be cautious, since blockchain investment risks are extremely high, and entering the market is risky.Look for independent reviews and analyses from reputable sources.

Diversify Your Portfolio

Don't put all your eggs in one basket. Diversify your portfolio across multiple assets to reduce your overall risk.This way, if one token performs poorly, it won't have a catastrophic impact on your overall investment.

Use Limit Orders

Use limit orders instead of market orders whenever possible. A recent analysis suggests that up to 78% of new token listings since April 2025 have been poorly managed. What could be causing market makers to act so indifferently? The pattern of massive priceThis allows you to specify the maximum price you're willing to pay for a token, preventing you from overpaying during periods of high volatility.

Set Stop-Loss Orders

Stop-loss orders automatically sell your tokens if the price falls below a certain level. The mastermind Harinder Chahal also known as Sonu Chahal duped the complainant Pravesh Kumar of Rs 15,50,000 by fraudulently showing bitcoins in his wallet which in reality belonged to the cryptoThis can help limit your losses in the event of a sudden price drop.

Be Wary of New Listings

Exercise extra caution when trading newly listed tokens. Stocks are about to hit a 'wall of money' that will drive the market to record highs in July, Goldman Sachs says Markets Insider Nvidia's head of finance and investor relations is leaving for a startupThese are often the most vulnerable to manipulation due to the limited liquidity and lack of price history.

Monitor Trading Volume and Price Action

Keep a close eye on the trading volume and price action of the tokens you're investing in. Is every cryptocurrency a pump-and-dump scheme? Many people rightfully ask this question, because one common theme users notice nearly every time a token is listed on a new exchange is a massive rise to unsustainable prices, followed by a cliche collapse, which leaves participants holding the bag. Who is behind the curtain? The answer is [ ]Be wary of sudden and unexplained price surges or drops, especially if accompanied by high trading volume.

Stay Informed

Stay up-to-date on the latest news and developments in the crypto market.Follow reputable news sources and industry experts to stay informed about potential scams and manipulation tactics.

The Future of Crypto Listings: Regulation and Transparency

Addressing the issue of market maker manipulation will require a multi-pronged approach, including increased regulatory oversight, greater transparency, and improved investor education. Are Market Makers Manipulating 78% of New Crypto Listings? A recent analysis reveals that up to 78% of new token listings since April 2025 have been mismanaged. Why do market makers seemAs the crypto market matures, regulators are likely to take a more active role in policing the industry and cracking down on fraudulent activity.

Increased Regulatory Scrutiny

Increased regulatory scrutiny could lead to stricter rules for market makers, including requirements for licensing, capital adequacy, and disclosure. One formula indicates that up to 78% of new token listings since April 2025 have been conducted badly. Why do market makers seem to be indifferent? Is every cryptocurrency a pump-and-dump scheme? Many people rightfully ask this question, because one common theme users notice nearly every time a token is listed on a new exchange [ ]This could help deter manipulation and protect investors from harm.

Enhanced Transparency

Greater transparency in the listing process would also be beneficial.Exchanges could be required to disclose the identity of market makers and the terms of their agreements with token projects. Are market makers manipulating 78% of new crypto listings? Posted on J by One formula indicates that up to 78% of new token listings since April 2025 have been conducted badly.This would make it easier to identify potential conflicts of interest and hold market makers accountable for their actions.

Investor Education

Finally, investor education is crucial.By empowering investors with the knowledge and skills they need to make informed decisions, we can reduce the vulnerability to manipulation and create a more level playing field.

Recent Developments: Citadel Securities and Institutional Interest

Interestingly, amidst the concerns about manipulation, some institutional players are showing increased interest in the crypto market. Are market makers manipulating 78% of new crypto listings? 25/06 One formula indicates that up to 78% of new token listings since April 2025 have been conducted badly.For example, Citadel Securities, a major market-making firm in traditional finance, is reportedly exploring the possibility of becoming a liquidity provider for major crypto exchanges.This could potentially bring greater stability and professionalism to the crypto market, but it also raises questions about the potential for conflicts of interest and the influence of large institutions.

Conclusion: Navigating the Complex World of Crypto Listings

The question of whether market makers are manipulating 78% of new crypto listings is a complex one with no easy answer. Home One formula indicates that up to 78% of new token listings since April 2025 have been conducted badly. Why do market makers seem to be indifferent? Are market makers manipulating 78% of new crypto listings?While definitive proof of widespread manipulation is difficult to obtain, the evidence suggests that mismanagement and potentially fraudulent activity are prevalent in the crypto market.As an investor, it's crucial to be aware of the risks and take steps to protect yourself. The First 100 Days: Introducing the Acheron Trading Index Our team is excited to introduce the Acheron Trading Index, designed to guide smart crypto investments by tracking market sentiment andBy conducting thorough research, diversifying your portfolio, using limit and stop-loss orders, and staying informed, you can navigate the complex world of crypto listings with greater confidence.The key takeaways are to DYOR, be skeptical of unrealistic promises, and remember that in the volatile world of crypto, caution is always warranted.While the potential rewards are high, so are the risks.Stay vigilant and invest wisely.

Mike Novogratz can be reached at [email protected].

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