On May 17, PANews reported that the Movement Labs and Mantra incident has sparked widespread attention in the crypto market regarding market-making mechanisms. Some executives from Movement Labs have been accused of colluding with their market makers to sell $38 million worth of MOVE tokens on the open market. Meanwhile, the OM token from Mantra plummeted over 90% within hours at the end of April without any significant negative news, raising questions about the token unlocking arrangements and the transparency of over-the-counter trading. Analysts believe these incidents have exposed the hidden contracts, private agreements, and the distorting effects of over-the-counter trading on token supply and price discovery mechanisms in the crypto market. Multiple market-making institutions are reassessing the token risk underwriting process and demanding higher transparency from project parties.
