A survey shows: 52% of encryption users do not trust market makers and are calling for increased transparency.

A global survey of over 2,000 Crypto Assets participants across 98 countries/regions found that 52% do not trust Crypto Assets market makers. The findings come from the "Crypto Assets Market Making Status – 2025" report, which also indicates that if market makers were prosecuted for their impact on the ecosystem, 70% of respondents would "join the lawsuit." The complete 71-page report has been made available as a free resource to the industry. It combines quantitative survey data with interviews of project founders, investors, and industry experts, aiming to provide Token teams and the broader community with a clearer understanding of how market-making relationships actually work.

According to research, 34% of the Crypto Assets community members indicated that they incurred losses holding Tokens in projects publicly collaborating with market makers. Additionally, 67% expressed that increasing the transparency of activities and fees would help boost trust. The report highlighted structural risks within the protocols supporting Token liquidity. Token lending arrangements are often paired with call options in a "options + loan" structure, emphasized as a major source of misaligned incentives. Poorly designed trades can lead to behaviors such as Token dumping or price manipulation. These actions may protect the position of market makers but can harm the stability of the Tokens.

The report details how hedging strategies such as delta hedging can create sell pressure during or shortly after a Token issuance, thereby undermining early momentum. In more extreme cases, market makers can use options mechanisms to push the Token price to profitable execution levels and then quickly sell off their positions. This can be akin to a carefully designed pump and dump amplified by trading terms. The author calls for a shift towards transparency and standardization in market-making arrangements.

Survey data indicates that people crave reform. More than two-thirds of the Crypto Assets community believe that increasing transparency would help rebuild trust, and half think that regulation can play a role, but less than one-fifth believe that regulation will be effective. While much of the report focuses on issues within the industry, it can also serve as a practical guide for Token teams. It outlines methods for evaluating market makers, setting performance KPIs, and weighing the pros and cons of different trading models.

Nathan Worsley, co-founder and CEO of Euphoria, described the report as "clear, grounded in first principles reasoning, and a must-read for anyone serious about market structure—especially those trying to understand how crypto assets market making works, how it fails, and what is most important for founders." Brandon Kumar, co-founder of Layer3, stated: "As founders, navigating the market making space often means making high-risk decisions with limited information. This report is one of the few genuine resources that helps reduce this asymmetry. It is a valuable read for anyone looking to get smart quickly."