Golden Finance reports that the Movement Labs and Mantra incidents have sparked widespread attention in the crypto market regarding the market-making mechanism. Some executives of Movement Labs are accused of colluding with their market makers to sell $38 million worth of MOVE tokens in the open market. Meanwhile, the OM token of Mantra plummeted over 90% within hours at the end of April without any significant unfavourable information, raising questions about the token unlocking arrangements and the transparency of OTC Trading.
Analysis suggests that these events have exposed the distorted impact of hidden contracts, undisclosed agreements, and OTC Trading on the supply of Tokens and the price discovery mechanism in the crypto market. Several market-making institutions are reassessing the risk underwriting process for Tokens and are demanding higher transparency from project parties. The Hong Kong market maker Metalpha stated that it has adjusted its trading structure, emphasizing long-term strategic consistency, and introduced mechanisms to prevent excessive dumping and false trading volumes. Industry insiders point out that informal trading in the OTC market is disrupting the supply dynamics of Tokens, making it more difficult for market makers to maintain liquidity.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
