Dragonfly Partner, Wintermute CEO, and others discuss the Movement event in detail, particularly the discussion on the market maker disclosure system, which I recommend everyone pay attention to.

In short, there is currently a significant information gap between exchanges, project parties, and ordinary investors, which is highly abnormal. This leads to the former easily profiting from market manipulation at the expense of the latter. If this situation does not change, the industry cannot develop in a normal and healthy way.

Haseeb:

In traditional markets, you need to disclose who your market maker is, whereas in cryptocurrency, exchanges know who your market maker is. Both Binance and Coinbase know. Before you apply for listing, you must provide this information. However, ordinary investors and the public are unaware. In my view, the ideal disclosure system should have a minimal information gap between exchanges and ordinary investors.

That is to say, when you apply for a listing on an exchange, the information available to the public should be consistent with what the exchange knows. I believe we should move in this direction in the future, but we are still far from this goal. I even think that the terms of the market-making agreements should also be disclosed. This was also mentioned by Hester Pierce in her speech, where she detailed the cryptocurrency disclosure system and suggested that the terms of market-making agreements should be disclosed to the public.

Evgeny:

I strongly support this idea because I believe we must acknowledge that, despite pretending tokens are not stocks, their behavior is very similar to stocks. Stocks require extensive disclosure about market makers, investors, and various risks. Hester's speech was precisely about this topic. However, we must discuss not just the information parity between exchanges and retail investors, but also that platform investors should have as much information as possible to make purchasing decisions. In reality, we are not achieving this.

I believe the fundamental aspects of market-making agreements, such as the loan size and strike price, are crucial. As an ordinary investor, you need to know the motives of market makers, such as their incentives to sell above a certain price. Once the price exceeds this level, there may be more selling pressure, or they may choose to hold on, but at least you are fully informed.

In fact, we once had a project that disclosed agreements, which was World Coin from six months ago. I remember World Coin did disclose loans, market makers, and strike prices, but they faced a lot of criticism. People began to question why such a structure was created, as if no other tokens had similar situations. They received a lot of backlash, and I believe they did not enjoy that experience. More importantly, all founders have become more cautious since then.

Haseeb:

As an industry, we have a responsibility to address this issue, not only for the regulatory systems that may be introduced in the future but also for our own interests. We need to reduce market volatility and enhance consumer confidence in token listings. People need to know whether the listed tokens are trustworthy and will not be sold off by unreliable market makers.