Analysis: Movement Labs and Mantra Incident Sparks Reflection on Market-Making Mechanisms in the Crypto Market

According to a report by Jinse Finance, the incidents involving Movement Labs and Mantra have drawn widespread attention in the crypto market regarding market-making mechanisms. Some executives of Movement Labs have been accused of colluding with their market makers to sell $38 million worth of MOVE tokens on the open market. Meanwhile, Mantra's OM token plummeted over 90% within hours at the end of April without any apparent negative news, raising concerns about token unlocking arrangements and the transparency of over-the-counter transactions. Analysts believe these events have exposed the hidden contracts, non-public agreements, and the distorting impact of OTC transactions on token supply and price discovery mechanisms in the crypto market. Several market-making institutions are reassessing their token risk underwriting processes and demanding greater transparency from project teams. Hong Kong market maker Metalpha stated that it has adjusted its trading structure, emphasizing long-term strategic consistency and introducing mechanisms to prevent excessive selling and fake trading volumes. Industry insiders point out that informal trading in the OTC market is disrupting token supply dynamics, increasing the difficulty for market makers to maintain liquidity.