A comprehensive review of over 150 major cryptocurrency protocols has revealed an almost complete lack of disclosure regarding market-making arrangements, a critical component for token trading and price stability. The research, conducted by crypto advisory firm Novora, found that fewer than 1% of protocols publicly share any terms related to their market makers.
Across the entire dataset, only one protocol—the decentralized liquidity platform Meteora—was identified as having disclosed details of its market-making agreements, which it included in its 2025 Annual Token Holder Report. The study covered leading sectors including decentralized exchanges (DEXs), lending platforms, perpetual futures, layer-1 and layer-2 networks, bridges, and centralized exchange tokens, with protocols ranging in fully diluted valuation from roughly $40 million to $45 billion.
Novora assessed the protocols using a binary transparency framework that evaluated disclosure practices and third-party data coverage, cross-referencing public sources like Artemis, Token Terminal, Dune, DefiLlama, and Blockworks Research. "This is the single most consequential transparency gap in the industry," Novora founder Connor King stated on X, noting that such material agreements are routinely disclosed in traditional markets. "In crypto, every market participant operates without this information."
The report highlights a broader investor relations (IR) deficit in the crypto space. While 91% of the reviewed protocols generate trackable revenue, only 18% publish quarterly updates and a mere 8% issue token holder reports. This indicates that while data exists, it is rarely packaged into structured investor communication. Third-party analytics infrastructure has matured, with coverage rates exceeding 85% across major platforms, suggesting the underlying data is accessible but not formalized.
Sector-level analysis shows uneven transparency. Perpetual futures protocols and DEXs tend to lead in disclosure and value accrual mechanisms, whereas L1 and infrastructure projects lag despite their larger market capitalizations. The study also examined the adoption of the Blockworks Token Transparency Framework (TTF), presented to the SEC in June 2025, finding that only about 9% of protocols (13 total, including Jito, Jupiter, and dYdX) had filed it, with no L1, L2, or infrastructure protocol submissions.
Opaque market-maker deals have long drawn scrutiny, particularly around token loan structures that critics argue can create incentives to dump borrowed tokens, harming prices and liquidity. The SEC has previously charged crypto market makers with price manipulation. A common but risky arrangement, the "loan option model," involves projects lending tokens to market makers for liquidity provision, which can lead to selling pressure that benefits the market maker at the project's expense.
