How Token Launch Frenzy Is Delaying 2025 Altcoin Season

Altcoin Season Index. Source: Blockchain CenterAre Market Makers Feeding TGE Hype？

Arthur Cheong, founder and CEO of DeFiance Capital, recently raised concerns over TGEs. He highlighted the risk of projects and market makers working together to inflate token prices artificially. This can distort market behavior and undermine investor confidence.

“You dont know whether the price is a result of organic demand and supply or simply due to projects and market makers colluding to fix the price for other objectives. Absolutely bizarre that CEXs are turning a blind eye to this and altcoin markets are becoming more and more like a lemon market where confidence gets lesser,” Cheong tweeted.

Responding to this, Vincent Liu suggested that there needs to be reforms in the way that token launches are approached.

“…the issue of artificially inflated token prices before launch presents a growing concern. While these short-term surges might attract initial attention, they often undermine long-term investor confidence. To mitigate this, the industry must champion greater transparency around partner agreements, listing criteria, and pre-launch disclosures. Clear communication about a projects structure, roadmap, and market cap expectations is essential to building a sustainable and trustworthy ecosystem,” Liu said.

Liu believes addressing this problem requires collaboration from market makers, centralized exchanges (CEXs), and investors.

“By conducting thorough research into the fundamentals of new projects, investors can protect themselves from significant losses and identify valuable tokens in the long run,” Liu concluded.