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 .

Source: Coin Edition