Dragonfly partners, Wintermute CEO, and others discuss the Movement event in detail, particularly the discussion on the market maker disclosure system is very thorough, highly recommended for everyone to pay attention to.

In short, currently there is a significant information gap between exchanges, project parties, and ordinary investors, which is very abnormal. The former can easily profit by manipulating the market to harvest the latter. If this situation does not change, the industry cannot develop normally and healthily.

Haseeb:

In traditional markets, you need to disclose who your market maker is, while in cryptocurrency, exchanges know who your market maker is. Both Binance and Coinbase know. Before you apply for listing, you must provide this information. But ordinary investors and the public do not know. In my view, the ideal disclosure system is that the information gap between exchanges and ordinary investors is basically zero.

That is to say, when you apply for listing on an exchange, the information that the public knows should be consistent with what the exchange knows. I think we should develop in this direction in the future, but currently, we are still far from this goal. I even believe that the terms of the market-making agreement should also be disclosed. This was also mentioned by Hester Pierce in her speech, where she detailed the disclosure system in cryptocurrency 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, although we pretend 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. But we must discuss not only the issue of 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 that the fundamental aspects of the market-making agreement, such as the loan size and exercise price, are crucial. As an ordinary investor, you need to know the motivations of the 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 continue to hold, but at least you are fully informed.

In fact, we once had a project with agreement disclosures, which was World Coin from about six months ago. I remember World Coin did disclose the loans, market makers, and exercise prices, but they received a lot of criticism. People started questioning why such a structure was created, as if every token did not have similar situations. They faced significant backlash, and I think 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 solve this problem, not only for the potential 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.