Analysis: The Movement Labs and Mantra incident has sparked a reflection on the market-making mechanism in the crypto market.

Golden Finance reports that the Movement Labs and Mantra incidents have sparked widespread attention in the crypto market regarding the market-making mechanism. Some executives of Movement Labs are accused of colluding with their market makers to sell $38 million worth of MOVE tokens in the open market. Meanwhile, the OM token of Mantra plummeted over 90% within hours at the end of April without any significant unfavourable information, raising questions about the token unlocking arrangements and the transparency of OTC Trading. Analysis suggests that these events have exposed the distorted impact of hidden contracts, undisclosed agreements, and OTC Trading on the supply of Tokens and the price discovery mechanism in the crypto market. Several market-making institutions are reassessing the risk underwriting process for Tokens and are demanding higher transparency from project parties. The Hong Kong market maker Metalpha stated that it has adjusted its trading structure, emphasizing long-term strategic consistency, and introduced mechanisms to prevent excessive dumping and false trading volumes. Industry insiders point out that informal trading in the OTC market is disrupting the supply dynamics of Tokens, making it more difficult for market makers to maintain liquidity.