Forgd Founder: Information asymmetry and front running are spreading from the token market to DAT institutional products.

PANews reported on November 30 that Shane Molidor, founder of the blockchain consulting company Forgd, warned that information asymmetry and front running behavior are spreading from the token market to institutional products such as DAT. DAT initially focused on investing in larger market cap tokens such as Bitcoin, which have strong liquidity and a relatively efficient price discovery mechanism. However, as competition intensified, many such tools began to shift their focus to smaller market cap tokens with lower liquidity in search of higher upside potential. This shift has made DAT more susceptible to manipulation. In addition, the fundraising process of DAT has also opened the door for front running. During the engagement with potential supporters, insiders can be informed in advance about which tokens will be purchased. This provides an opportunity for front running, which allows them to directly buy these assets on the secondary market in hopes of profiting from future price increases.