How are “locked” exchange tokens legal?

(Looking at you CRO)

Does this not just create easy market manipulation?

Create a “decentralized” coin which is really only used by you.

Create a reason to buy the coin (Card) with HIGH incentives. Make it a loss leader so that it’s the best on the market. Run ads everywhere to make it seem legit.

Require people buy and lock up their money in your custody for 6 months+ to pump the price.

Once enough people are locked in, cash out at the peak of the market.

Reduce rewards rapidly to get the price to tank.

Once everybody’s 6 months are up, buy your own coins again for cheap as hell.

Rinse and repeat.