Crypto Market Maker Disclosure Lacking in Institutional Investor Research

A new audit conducted by Novora has shed light on a significant gap in the transparency of the cryptocurrency market. The firm analyzed over 150 crypto protocols and found that none of them disclose market maker terms, which are essential information for investors.

The study used 15 binary, publicly verifiable disclosure metrics to assess token disclosure practices. While 98% of audited protocols make revenue data accessible, they fail to package it in a way that is useful for institutional allocators.

Novora's research suggests that the bottleneck is not the availability of data but rather its presentation. The firm notes that better disclosure can be achieved through standardized practices and templates, such as the Token Transparency Framework.