How are “locked” exchange tokens legal?

(Looking at you CRO)

Does this not just create easy market manipulation?

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

2. 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.

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

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

5. Reduce rewards rapidly to get the price to tank.

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

7. Rinse and repeat.