Analysis: Movement Labs and Mantra incidents trigger reflection on the market-making mechanism in the crypto market

Odaily Planet Daily News Movement Labs and Mantra incidents have aroused widespread concern in the crypto market about market-making mechanisms. Some executives of Movement Labs were accused of conspiring with their market makers to sell $38 million worth of MOVE tokens in the open market. At the same time, Mantra's OM token plummeted by more than 90% in a few hours without obvious negative news at the end of April, raising questions about the token unlocking arrangements and the transparency of over-the-counter transactions. Analysts believe that these events expose the distorted effects of hidden contracts, non-public agreements and over-the-counter transactions in the crypto market on token supply and price discovery mechanisms. Several market makers are re-evaluating the token risk underwriting process and requiring project parties to provide greater transparency. Industry insiders pointed out that informal transactions in the over-the-counter market are disrupting the dynamics of token supply and increasing the difficulty for market makers to maintain liquidity. (CoinDesk)