Digital Asset Tokens Extend Crypto Market Challenges to Traditional Finance: Shane Molidor’s Analysis

Shane Molidor, Head of Growth at Forgd, has raised concerns about the migration of crypto market issues into traditional financial systems through Digital Asset Tokens (DATs). According to Molidor, information asymmetry and front-running practices—longstanding challenges in cryptocurrency markets—are now appearing in institutional-grade financial products. DATs, which represent tokenized traditional assets, are becoming vulnerable to the same market manipulation behaviors that have plagued digital asset markets. Molidor emphasizes that these sophisticated financial instruments, while bringing innovation to traditional finance, also inherit the regulatory challenges and ethical concerns from their crypto counterparts. The warning highlights the need for enhanced surveillance mechanisms and regulatory frameworks that can address these cross-market vulnerabilities. As traditional financial institutions increasingly adopt blockchain-based products, the industry must develop robust compliance standards to prevent market abuse and protect investor interests across both traditional and digital asset ecosystems.