Crypto Bloodbath: Major Tokens Nosedive as Market Sentiment Craters

Bitcoin sheds 20% in brutal weekend liquidation—Ethereum gasps below $3K as leverage gets vaporized.

Altcoin massacre: Solana, BNB, and memecoins spiral toward January lows while ’hedges’ like Bitcoin Dominance flash red.

Traders scramble for exits as open interest collapses—just another day in crypto’s casino economy.

Silver lining? The dip-buyers are already circling like vultures. After all, what’s a 50% drawdown between degenerates?

Market Makers Confront New Risks and Questions

Unlike traditional financial markets, market makers in the crypto asset market not only set buying and selling prices. They also engage in token presale agreements, plan liquidity for centralized exchanges, and sometimes assume roles such as advisory or partnership. This complexity creates a risk environment intertwined with various personal agreements and token modeling in the market.

In the recent scandals, it was alleged that tokens were not unlocked transparently, and some participants made secret agreements. Under these conditions, market makers began to question how to protect their positions against non-transparent token distribution periods. Additionally, the possibility that decisions taken by the community could be overridden by some private agreements became a concern.

Secret Agreements and the Impact of the Secondary Market

In the detailed investigation of the events surrounding the MOVE token, allegations surfaced that company executives released a significant amount of tokens into the market in coordination with their market makers. Such initiatives led to a erosion of mutual trust in the industry. Companies have now adopted a more cautious approach towards their collaboration partners.

Metalpha, based in Hong Kong, stated that they have revised agreement structures to prioritize long-term strategic alignment and ethical behavior over short-term performance, developing protective measures in this scope. They are implementing additional precautions against unethical behaviors, such as excessive token sales and artificial transaction volumes.

Max Sun, Head of Web3 Ecosystem at Metalpha, shared that “projects no longer accept surface reputations without question. We have seen the end of the era of trust.” This statement reflects a significant shift in the approach towards token launches and market-making agreements.

Behind-the-scenes processes in token launches and market-making agreements are influenced by the secondary over-the-counter market. In this market, locked tokens change hands among various investors or funds before they are released for general distribution. This development can cause difficulties for some market participants in determining token supply and value accurately.

Analyst Min Jung from Presto Research noted, “The industry’s dynamics changed with the over-the-counter market. Tokens with dubious price movements are most actively traded in this market.” Jung also emphasized that these processes disrupt the total supply and distribution plan, making it challenging for funds to determine when the actual tokens enter the market.

The recent sudden crashes in the crypto market and the complex deals conducted in the background have initiated a new awakening regarding the functioning of the market. Market makers and projects are striving to develop approaches that emphasize more transparency, more comprehensive discussions among parties, and long-term trust in agreements. In this context, transparency and open communication are seen as crucial for investors and industry stakeholders to evaluate both risks and opportunities effectively.