MOVEMENT AND MANTRA SCANDALS SHAKE UP MARKET-MAKING

Summary from the TLDR Crypto newsletter

Mantra's OM plunging over 90% in hours and Movement Labs executives secretly dumping $38 million of MOVE have shattered assumed trust between market makers and project teams. Firms now insist on full disclosure of side agreements, token grants, and unlock schedules, embedding institutional‑grade legal and technical safeguards into their market‑making contracts. The murky secondary OTC market, where locked tokens trade off‑market ahead of vesting, has further distorted supply dynamics and muddied price discovery. In response, liquidity providers are abandoning informal trust in favor of rigorous diligence, enforceable tokenomics terms, and clear contingency frameworks.