Less than 1% of crypto projects publicly disclose terms of cooperation with market makers
Only a tiny fraction of cryptocurrency projects, less than 1%, publicly reveal their terms of collaboration with market makers. This highlights a systemic issue in the industry where lack of transparency fosters conditions for price manipulation, hidden sales, and other market abuses.
Source Novora
An assessment of 13 disclosure metrics across over 150 crypto protocols shows a structural gap between traditional market requirements and voluntary disclosures in the crypto sector. This indicates that the transparency problems are not due to technical limitations but stem from the current culture and practices within the industry.
Moreover, the absence of regular publication of data like quarterly updates, token reports, and sales volumes makes it harder to assess the true value and performance of crypto projects, undermining investor confidence and increasing market volatility.
The cryptocurrency market has existed for over a decade and witnessed significant technological advancements. However, regulatory transparency and informational openness remain key challenges. Companies in this field provide tools to analyze projects, but overall disclosure standards remain low.
In summary, the minimal disclosure of market maker terms reflects a deep-rooted issue in the crypto industry. Increased transparency standards are essential to build investor trust and promote market stability.
Going forward, it is likely that more projects will face pressure to adopt stricter investor transparency requirements, driven by regulators and market competition.
