Analysis: Movement Labs and Mantra incident trigger reflection on the market making mechanism in the cryptocurrency market

Odaily Daily News: The Movement Labs and Mantra incident has sparked widespread attention in the cryptocurrency market regarding market making mechanisms. Some executives of Movement Labs have been accused of conspiring with their market makers to sell $38 million worth of MOVE tokens in the public market. At the same time, Mantra's OM token plummeted over 90% within hours at the end of April without any significant negative news, raising questions in the market about token unlocking arrangements and transparency in over-the-counter trading. Analysis suggests that these events have exposed the distorted effects of hidden contracts, non-public agreements, and over-the-counter transactions in the cryptocurrency market on token supply and price discovery mechanisms. Multiple market making institutions are reassessing the token risk underwriting process and requesting project parties to provide higher transparency. Industry insiders point out that informal trading in the over-the-counter market is disrupting the dynamics of token supply and increasing the difficulty for market makers to maintain liquidity. （CoinDesk）