How Do Market Makers Influence the Perception of a Soft Rug Pull?

Market makers (MMs) are hired to provide liquidity and maintain an orderly market. However, if an MM is secretly acting on behalf of the team to slowly sell off large token allocations, it can mask a soft rug pull.

The selling appears as normal market activity, and the MM's actions are often shielded by a confidentiality agreement, making it difficult for investors to discern the true source of the selling pressure.