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

Odaily News Movement Labs and Mantra events have sparked widespread attention in the crypto market regarding market-making mechanisms. Some executives from 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 a few hours at the end of April without any obvious unfavourable information, raising questions in the market about the token unlocking arrangements and the transparency of OTC Trading. Analysis suggests that these events expose the distorted impact of hidden contracts, undisclosed agreements, and OTC trading on token supply and price discovery mechanisms in the crypto market. Several market-making institutions are reevaluating the token risk underwriting process and are demanding greater transparency from project parties. Industry insiders point out that informal trading in the OTC market is disrupting token supply dynamics, increasing the difficulty for market makers to maintain liquidity. (CoinDesk)