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

Mars Finance reports that the Movement Labs and Mantra incidents have sparked widespread attention to market-making mechanisms in the crypto market. Some executives of Movement Labs are alleged to have colluded with their market maker to sell MOVE tokens worth $38 million in the open market. Meanwhile, Mantra's OM token plummeted over 90% within hours in late April without any apparent negative news, raising questions about token unlocking arrangements and over-the-counter trading transparency. Analysts suggest these events expose the distorted impact of hidden contracts, non-public agreements, and over-the-counter trades on token supply and price discovery mechanisms. Multiple market-making institutions are reassessing token risk underwriting processes and demanding greater transparency from projects. Industry insiders point out that informal over-the-counter transactions are disrupting token supply dynamics and increasing the difficulty for market makers to maintain liquidity. (CoinDesk)