Forgd founder: Information asymmetry and front-running are spreading to DAT products, and institutional tools face increasing manipulation risks.

According to Odaily Planet Daily, Shane Molidor, founder of blockchain consulting firm Forgd, stated that information asymmetry and front-running behavior are spreading from traditional token markets to institutional-grade products such as digital asset trusts (DAT).

Molidor points out that DATs initially primarily allocated to highly liquid, large-cap assets such as Bitcoin, which offered high price discovery efficiency and limited room for manipulation. However, as competition intensified, many DATs began shifting towards less liquid, smaller-cap tokens in search of higher returns, making them more susceptible to price manipulation and abnormal volatility.

He further stated that DAT's fundraising process also carries structural risks: when communicating with potential investors, insiders may have prior knowledge of future coin purchase directions, allowing them to preemptively position themselves in the secondary market and profit from subsequent capital inflows. This type of "quasi-insider" preemptive trading could become a new hidden danger for institutional products. (Cointelegraph)