Market Making in Crypto – Crypto market making in the crypto space is a risky undertaking. Unlike traditional markets, there are no regulations to enforce. Consequently, it’s easy for certain practices to slip into the fray. These include price manipulation, wash trading, and pump-and-dump tactics. Some of these practices have long been thought of as abusive. However, they have recently made a comeback in the cryptospace.
One of the more common practices is to “wash” trading a token. In this scheme, a specialist agrees to sell shares at a higher price than they actually command. Similarly, a market maker will “wash” the volume of a particular asset by executing scores of trades in both directions, in exchange for a fee. This strategy can result in the token getting listed on a more prominent exchange. The best market makers will have a dedicated professional who runs algorithms designed to achieve these goals.
In addition to generating liquidity, market making can help to lower costs and increase the volume of a project. If an exchange wants to offer a new token, a good market maker can ensure it receives sufficient liquidity to attract the attention of sophisticated investors. In order to avoid these problems, entrepreneurs should choose a market maker carefully.
Some of the better known firms in the market-making space are Kairon Labs, Empirica, Antier, and B2C2. These companies each have unique offerings. Some of them boast features that are not available on other platforms, such as a custom-built algorithm for utility tokens, and a team that includes cutting-edge experts in algorithmic trading, data analysis, and financial engineering. Others, such as Auros, strive to make long-term strategic partnerships. Regardless of the specific services offered, these companies all share a few traits in common.
As a well-intentioned entrepreneur, you may believe that a market maker can make your token more visible. While this is true, you should do a little research into the market-making industry before you sign on the dotted line. It’s important to make sure that your market-making partner uses the correct techniques.
Using a market-making service can be an easy way for an individual crypto project to get off the ground. However, it’s important to choose a firm that has a solid track record and is known for its market-making abilities. This is especially important if your project is looking to raise a substantial sum of money.
While it’s not uncommon to find a crypto market-making firm that claims to be able to do everything, it’s still wise to look for firms that do a few things very well. For example, Kairon Labs provides an extensive network of partners and a team of highly experienced analysts. The company also offers regular conference calls, bi-weekly reports, and personalized solutions for each client.
In addition to its excellent reputation, B2C2 is a digital asset pioneer. It’s also a partner of choice for diverse institutions worldwide. Several projects have already turned to Auros for strategic partnership and a reliable source of liquidity.
