The founder of Defiance Capital compares Altcoin Market to “Lemon Market”

Since the expectation is built for the potential Altcoin season, investor morale is still inconsistent with increasing concerns about the quality and transparency of many newly listed symbols.

While some traders put in the bullish direction in the smaller digital assets, doubts are escalating about the increasing number of doubtful altcoins that appear on the central stock exchanges.

These symbols, which are often backed by more than noise or mysterious difference, raise red flags throughout the industry.

Decrease in the quality of the altcoin market

For one, for one, the founder of Defiance Capital Arthur Cheong has sparked serious concerns about the liquid encryption market transparency in a recent tweet. He highlighted what it considers the increasing problem of unknown cooperation between encryption projects and market makers, which may lead to artificial symbolic prices.

In a conversation tweetCheong warned that this lack of transparency makes it difficult to distinguish between organic market activity and price treatment. He also criticized the central exchanges (CEXS) to ignore these practices, which are believed to erode confidence in the Altcoin market. Chiong said that the current scene is similar to the “lemon market”, as the investor’s confidence quickly declines.

In addition, he pointed out that most of the distinguished events (TGE) this year witnessed the collapse of prices by 70-90 % after a short period of launch, which left investors huge losses. He called for the main industry players to take and warn that without reform, a large part of the market will remain inaccurable.

Distinguished symbol controversy for Mantra’s om

The founder’s comments come at the same time as the Mantra om symbol witnessed a sharp decrease, losing more than 90 % of its value within only one hour on April 14. This event raised concerns about trading from the inside and manipulating the distinctive symbol.

The stock exchange has highlighted the main modifications to the features of OM since October 2024 and announced the unusual trading activity from the relevant wallet addresses dating back to March.

Om’s distinctive code crash adds to an increasing list of failed or disturbed encryption assets, which is only a condensed trend over the past decade. According to the crypto wallet provider TangFrom 2013 to 2025, more than 12,000 cryptocurrencies failed, while a total of 12,383 coins became. The main reasons behind these failures range from low trading and project abandonment to fraud and failed ICOS.