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

Shane Molidor, founder of blockchain consulting firm Forgd, stated that information asymmetry and front-running are spreading from traditional token markets to institutional-grade products such as Digital Asset Trusts (DATs). Molidor pointed out that DATs initially primarily allocated to highly liquid, large-cap assets like Bitcoin, resulting in high price discovery efficiency and limited room for manipulation. However, as competition intensifies, many DATs are 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 the fundraising process for DATs also carries structural risks: during communications with potential investors, insiders may gain advance knowledge of future token purchase directions, allowing them to preemptively position themselves in the secondary market and profit from subsequent capital inflows. This type of "quasi-insider" front-running could become a new hidden danger for institutional products. (Cointelegraph)