Insider trading in crypto is expanding from token launches to digital asset treasuries (DATs), as investors exploit early knowledge of upcoming corporate crypto purchases. According to Shane Molidor of Forgd, such behavior is a structural issue in crypto markets, not just a few rogue actors. Many exchanges and market makers engineer token launches for spectacle and profit, prioritizing thin liquidity and underpricing to attract retail traders, who often buy at inflated prices. This system encourages cycles of artificial price surges followed by collapse, benefiting exchanges through trading volume and fees. Western exchanges like Coinbase generally use slower, fairer auction listings, while Asian platforms focus on rapid, speculative trading. The same manipulation and front-running now affect DATs, especially as they move from large, liquid coins like Bitcoin to smaller tokens. Early access to treasury purchase information enables insiders to buy ahead of market moves, inflating prices in illiquid markets. Once demand fades, lack of real liquidity can cause sharp price drops. Overall, crypto markets remain defined by speculative activity, opacity, and information asymmetry, and the entry of institutional investors brings both legitimacy and new risks to this opaque structure.

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