Unchained Crypto Pump & Dumps Have Become the Ugly Norm. Can They Be Stopped? - Ep. 834
May 13, 2025
José Macedo, founder of Delphi Labs, Omar Shakeeb, cofounder of SecondLane, and Taran Sabharwal, CEO of STIX, dive into the dark side of cryptocurrency trading. They reveal how market makers can manipulate prices and why insider selling is more rampant than many believe. The discussion centers on notorious projects like Movement Labs and the systemic issues in crypto fundraising, raising urgent calls for transparency and reform to protect retail investors. Insightful and eye-opening, this conversation challenges the industry's status quo!
AI Snips
Chapters
Transcript
Episode notes
Crypto Market Maker Conflicts
- Market makers in crypto often use option agreements tied to token prices, incentivizing pump and dump behavior.
- This creates conflicts of interest unlike traditional market making focused solely on liquidity and bid-ask spreads.
Exchanges Must Enforce Market Maker Regulation
- Exchanges should require market makers to be regulated and disclose arrangements to prevent shady practices.
- Enforcement by exchanges can leverage regulatory pressure to clean up market making behaviors.
Build Market Fit Before Raising
- Founders should prioritize building products with genuine market fit before raising huge funds.
- Raise small amounts initially to validate demand rather than seeking large valuations that deter retail buyers.