Expert: Crypto Prices Remain Manipulated Until Market Structure Rules Hit

TLDR:

• Centralized exchanges currently control crypto prices with opaque order books and no oversight.
• Crypto asset values remain disconnected from network adoption and actual fundamentals.
• Market Structure regulation expected to enforce verified pricing and reduce manipulation.
• Unregulated exchanges feed false data into oracle networks, spreading inaccurate prices ecosystem-wide.
  

Crypto markets are about to see a structural shift that could finally tie prices to real adoption. Analysts warn centralized exchanges still manipulate order books unchecked. This has left crypto values disconnected from fundamentals and network performance. 

Investors have relied on price signals that may not reflect true market activity. MartyParty, a crypto commentator, highlighted that upcoming Market Structure regulation could change how asset prices are verified.

Centralized Exchanges Distort Crypto Prices

Crypto prices today do not always reflect supply and demand. MartyParty noted that centralized exchanges operate opaque order books with no regulatory oversight. 

These platforms can arbitrarily adjust prices and feed them into oracle networks. Oracles then disperse these numbers across DeFi platforms, creating an ecosystem-wide illusion of legitimate pricing.

Investors may believe prices are set by genuine trading, but current systems allow manipulation for exchange agendas. 

MartyParty emphasized that until Market Structure regulation is enforced, this disconnect will persist. Crypto assets remain valued inconsistently relative to adoption or network utility.

Order books on major exchanges are prone to spoofing and artificial volume. 

Exchanges can display false bids or offers, shaping public perception of supply and demand. This has created opportunities for entities controlling liquidity to profit while network value remains sidelined. 

Crypto markets today lack auditing and verification mechanisms to prevent this behavior.

Analysts expect Market Structure regulation to require transparent order books and verified trade data. With enforcement, the market could begin reflecting real transactions instead of arbitrary exchange-driven figures. 

Investors may see crypto prices align more closely with adoption metrics and usage rates.

Market Structure Regulation Set to Restore Real Crypto Pricing

Market Structure regulation, expected before the end of 2025, targets price manipulation on centralized exchanges. 

MartyParty highlighted that it will introduce rules for verified order books and accurate price reporting. Crypto prices could finally reflect genuine network activity and adoption levels.

Regulators will likely require audits of trade data and mechanisms to prevent spoofing. Exchanges will be accountable for feeding oracles accurate numbers. Consequently, prices may move away from arbitrary targets toward real market-driven values. 

Investors will have more reliable signals for decision-making.

The shift could also impact DeFi platforms relying on oracle data. With more accurate prices, lending, borrowing, and derivatives protocols may see reduced risk from false valuation inputs. Market Structure regulation could bridge the gap between asset price and network utility.

MartyParty concluded that enforcement is crucial. Without it, crypto will continue experiencing price decoupling from fundamentals. The upcoming rules promise a market closer to transparent trading, aligning investor expectations with reality.

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