Study finds less than 1% of crypto protocols disclose market maker deals

Less than 1% of over 150 cryptocurrency protocols disclose the terms of their contracts with market makers, Wu Blockchain reported, citing a study by crypto advisory firm Novora. The study, which surveyed projects with market capitalizations ranging from $40 million to $45 billion, found that only Meteora (MET) made its terms public. Novora founder Conner King noted that these agreements, which can include token loans, option contracts, and performance fees, directly impact price formation. He pointed out that while such disclosures are mandatory in traditional financial markets, the crypto market lacks the investor relations infrastructure to help translate raw data into institutional trust. The study also found that only 38% of the surveyed protocols had models for returning value to token holders, such as fee distribution or buybacks. For the remaining 62%, the sole use case for their tokens was governance.