In the first half of April, dozens of cryptocurrencies traded on crypto exchanges such as Binance and OKX experienced double-digit price drops for no apparent reason. At various times, tokens such as ACT, DEXE, KAVA, DF, HIPPO, UFT, VIDT fell by up to 90% in a matter of hours. Experts suggest that the reasons for such price movements may lie in the lack of transparency in the relationship between token issuers and market makers.

On April 13, the price of the OM token fell by 94% in two hours, losing more than $5 billion in capitalization. On April 12, VIDT quotes fell by 82%, according to Binance. On April 3-4, more than ten tokens, including ACT, DEXE, KAVA, DF, HIPPO, UFT, DF, BANANAS31, LUMIA, TST, QUICK, fell by tens of percent, and some fell by more than 50%.

If major industry players do not take steps to improve the situation, most of the market will remain unsuitable for investment in the foreseeable future, says Arthur Chong, founder of the venture company Defiance Capital. His opinion was noted by Chinese journalist Colin Wu.

Chong noted the trend of token prices falling after the start of trading on exchanges: “They just fell by 70-90% after listing within a few months.”