The collapse of Movement Labs' MOVE token and Mantra's OM token has caused significant turmoil in the crypto market-making sector. These incidents, resulting from forced liquidations and undisclosed contracts, have revealed a need for greater transparency and trust in liquidity structures. The fallout from these blowups, particularly Mantra's token plummeting over 90% without a clear trigger, has prompted market makers to reassess token risk underwriting strategies. They are now insisting on clearer deal terms and increasing due diligence before engaging with projects. Additionally, secretive secondary OTC markets are complicating price discovery and skewing token supply dynamics, as locked tokens are traded privately before public unlocks. Market participants have expressed concern over the integrity of token offerings, highlighting that the era of implicit trust may be over. As firms adapt their approaches, many are focusing on long-term strategic alignments with project teams, implementing safeguards against unethical practices like excessive token dumping.

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