In April, Movement Labs’s Move Token and Mantra’s sudden and harsh price decreases in the OM token have aroused a wide range of repercussions in the crypto currency industry. In both cases, token prices collapsed in a short time, the roles of important players in the market and non -transparent agreements. Especially the loss of OM token more than 90 percent in a few hours, caused serious question marks in the crypto market.
Marketmakers face new risks and questions
Unlike traditional financial markets, marketmakers in the crypto asset market are not only content with setting the purchase-sale price. At the same time, token makes agreements on pre -sales, plans liquidity for central stock exchanges, and even takes roles such as consultancy or partnership from time to time. This complexity creates an intertwined risk environment with various personal agreements and token modeling in the market.
In the last scandals; The locks of the tokens were not transparently opened and some participants were allegedly made secret agreements. Under these conditions, market makers began to question how to protect their positions against non -transparent token distribution periods. In addition, the possibility that the decisions taken by the community could be overcome by some special agreements was also a concern.
Secret agreements and the Effect of the Secondary Market
In the detailed research of the events that came up in the Move Tokene, the claims that the company managers act with their own market makers and launch a significant amount of token. Such initiatives led to the shaking of mutual trust in the sector. Firms have now started to take a more cautious approach to the parties they are cooperating with.
In a statement to Coindesk from Hong Kong -based Metalpha, the market -making department of the market, it was said: “Now we devote more time to preliminary meetings and project teams about the market mechanism.”
Metalpha, revised the agreement structures and said that they prioritize long -term strategic harmony and ethical behavior instead of short -term performance, and that they have developed protection measures. In this context, additional measures are taken against unethical behaviors such as extreme token sales and artificial process volume.
Max Sun, the President of Metalph’s web3 ecosystem, said, “The projects no longer accept the reputation on the surface without question. We have seen the end of trust in the period of confidence,” he shared.
Behind the scenes of token launch and market -making agreements, the secondary market process is also effective. In this market, locked tokens change between various investors or funds without any general distribution. This development leads to some market participants to have difficulty in detecting token supply and value.
Analyst The dynamics of the industry changed with the market market. Tokens, which are the suspicious price movement, are usually traded in this market in the most active way, ”from Presto Research.
Jung also stressed that these processes disrupt the total supply and distribution plan, and that the funds were difficult to determine when the main tokens entered the market. Agreements in the background can reduce the transparency of supply-demand balance and price discovery in the market. Thus, the biggest risk for investors is to understand whether the described token supply is really on the market.
The recent sudden collapses in the crypto currency market and the complex agreements carried out in the background have launched a new awakening of the functioning of the market. Marketmakers and projects are after which more transparency, more comprehensive negotiations and agreements between the parties are trying to develop approaches that bring long -term confidence to the forefront. In this respect, transparency and open communication seem to be extremely important for investors and industry stakeholders to evaluate both risks and opportunities.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
