Analysis: Movement Labs and Mantra events provoke reflection on crypto market-making mechanism

The Movement Labs and Mantra incidents have sparked widespread attention in the crypto market, with some Movement Labs executives accused of conspiring with their market makers to dump $38 million worth of MOVE tokens in the open market. Meanwhile, Mantra's OM tokens plunged more than 90% in a few hours with no obvious bearish news at the end of April, raising questions about the unlocking arrangements and transparency over the counter.
According to the analysis, these events have exposed the distorting effects of hidden contracts, non-public agreements and over the counter in the crypto market on token supply and price discovery mechanisms. Several market makers are re-evaluating the process of underwriting token risks and demanding greater transparency from project parties. Hong Kong market maker Metalpha said it has adjusted its trading structure to emphasize long-term strategic alignment and introduced mechanisms to guard against excessive selling and false trading volumes. Industry insiders pointed out that informal trading in the over-the-counter market is disrupting token supply dynamics, increasing the difficulty for market makers to maintain liquidity.