PANews reported on March 10 that Manta Network co-founder Victor Ji posted on X that he is extremely negative about active market makers (MM) and OTC transactions, and believes that these institutions do not pay attention to the fundamentals of the project and only make profits by absorbing market funds. He pointed out that market makers are usually very active in industry activities, but the source of funds mostly comes from the project community, which causes the industry's capital liquidity to deviate from real market transactions, and ultimately accelerates the collapse of the industry.
Victor Ji further suggested that if the project party is worried about liquidity issues, they should not easily provide a large number of tokens to market makers, but should consider small-scale loan plans. He cited the example that the Polkadot ecosystem project Calamari was asked by Three Arrows Capital (3AC) for 3% of its tokens for market making in the early days, but in the end these tokens were quickly sold, leading to market selling pressure. He believes that a reasonable loan size should not exceed 0.2% of the tokens, because even if the market depth of 2% requires 200,000 US dollars of liquidity, the value of 0.2% of the tokens is enough to support demand. If the market maker asks for more tokens, it may intend to smash the market for profit.
