While the cryptocurrency sector is growing rapidly, some fundamental problems are preventing the healthy development of the sector. In this article, we will examine the two major chaos of the sector: "token chaos" and insider trading. $NEIRO $1MBABYDOGE or $TURBO not. We will talk about broader and deeper problems. Because, as long as these problems are not solved, the mass adoption of cryptocurrencies and their impact on the financial system will remain limited.
📌Token Chaos: Anyone Can Issue Tokens
Although it may seem like a great freedom for anyone to be able to easily issue their own tokens in the cryptocurrency world, this situation brings with it serious problems. Today, many projects can issue tokens without being subject to any control. Moreover, those who issue these tokens can make huge profits with the positions they create (mouse positions) to manipulate the market. This poses a great risk, especially for small and vulnerable investors.
Projects are often listed on exchanges with insider information, and a small number of people who make the first purchases make huge profits. These people can create huge fortunes without even the knowledge of small investors. Moreover, such operations are widespread on large and small exchanges. Insider trading and manipulation exploit loopholes in cryptocurrency markets by taking advantage of the lack of regulation.
📌Insider Trading and Market Manipulation
Some leaders in the industry are busy deceiving each other to get a bigger share of the pie. Creating new stories to gather more resources in the market and forming cliques among themselves has become a common tactic. These manipulations are growing as a result of the lack of control in the market, and investors can suffer great losses in the process.
So why don’t the industry leaders take the path of self-restraint and setting clearer rules, as in traditional industries? In traditional industries, many standards are set by industry leaders. Unless a similar approach is developed in the cryptocurrency industry, chaos will continue to grow.
📌Why Are Protocols Insufficient?
The current token listing and unlocking processes remain dysfunctional. Any project can easily develop and launch tokens. So why isn’t a functional protocol developed to oversee the token issuance and unlocking processes of projects? If there was such an oversight mechanism in the industry, manipulation could be prevented and investors could trade in a safer environment. However, when projects avoid using such protocols, it usually indicates that there are some internal problems.
📌Solution: Third Party Auditing and Transparency
To solve these problems, listing processes need to be audited by independent third parties. Two or more anonymous teams can review projects and investigate whether there are any rat positions or black box operations. Having these audit teams completely independent of the listing teams can provide a more objective solution to the problem.
If the token listing and auditing processes can be made independent and transparent, manipulations in the sector can be largely prevented. In this way, investor confidence will increase and the sector will develop in a healthier way.
📌Conclusion: Solving Problems at Their Roots
In order for the cryptocurrency industry to have a healthy future, these two fundamental problems must be solved radically. Strengthening transparency and auditing mechanisms will contribute to the end of insider trading and token chaos. This process may be difficult, but it is possible. The important thing is for industry leaders to act together to solve this problem and develop a permanent solution.
