## Crypto Market May Introduce 'Sidecar' Mechanism The virtual asset market is considering adopting a 'sidecar' mechanism, similar to that used in stock markets, to mitigate extreme volatility after listing. This system temporarily suspends trading if prices fluctuate dramatically beyond a set threshold, aiming to prevent market instability. MoneyS reported that financial authorities, through the 'Virtual Asset Committee,' are exploring integrating the 'sidecar' concept into the Digital Asset Exchange Joint Council (DAXA)'s best practices. This proposal will be discussed at the committee's fourth meeting on May 1st. The 'sidecar' would halt program trading for five minutes if futures prices rise or fall significantly (beyond a specified percentage) compared to the previous day's closing price for more than one minute. This pause allows the market to stabilize and prevents rapid price swings driven by automated trading, ultimately protecting investors from potential losses during periods of high volatility immediately following a coin's listing. ```
