Wu Blockchain (@WuBlockchain): Inside the Black Box of Market Maker Token Loans: From OTC Agreements to On-Chain Disclosure
Estimated coin impact
Scores are not price-change percentages. High impact means a score of +70 or more, or -70 or less.
Impact unavailable
Inside the Black Box of Market Maker Token Loans: From OTC Agreements to On-Chain Disclosure Many “market maker allocations” in tokenomics are structured as token loans combined with call options rather than direct sales. Projects provide tokens to market makers before TGE, but key terms such as loan amounts, strike prices, and repayment conditions are often undisclosed, making it difficult for retail investors to assess actual circulating supply and potential selling pressure. Bringing MM loan information on-chain could reduce information asymmetry in the altcoin market. Alongside the development of perpetual contracts and on-chain shorting tools, greater transparency around market maker agreements could improve price discovery, increase accountability, and reshape market incentives.