Hidden Sell Orders in Crypto Token Loans Distort Price Discovery

Crypto token loans to market makers are hiding large sell orders from public view, distorting price discovery and misleading retail investors.

These deals, often kept off-chain, create hidden selling pressure that retail buyers cannot see, affecting early trading fairness. The Solana Foundation's past token burn highlights the issue's significance, with industry voices now pushing for public disclosure or on-chain recording of loan terms.

Alternative models like performance-based fees are emerging to improve transparency and fairness in token launches.