Crypto market making is a critical aspect of the crypto space that helps bring buyers and sellers together to create much-needed liquidity. This liquidity is the key to crypto project success and the ability for tokens to thrive on exchanges.
Typically, market makers provide a bid-ask spread for a digital asset in an exchange’s order book. This allows traders to get the best price possible for their trade and avoid unfilled orders.
The crypto market is full of a variety of different firms offering market making services, and it is important to do your due diligence before deciding on which one is right for you. You don’t want to partner with an unscrupulous firm that might be taking advantage of your token.
Good cryptocurrency market makers have their own proprietary software that runs algorithms that make thousands of trades every day. They also have a dedicated trading professional who monitors the markets and makes sure that they are meeting their bid-ask spread goals.
They also keep track of market trends, analyzing them and using their expertise to make accurate forecasts for the future. This gives you a lot of confidence in their performance and enables them to achieve the metrics they are contractually obligated to.
A few of the best crypto market makers include Auros, Empirica, and Bluesky. These companies have a proven track record of delivering on their promises to clients, and they have faced some of the toughest times in the crypto market.
Working with a market maker is a great way for ICO issuers to build a liquidity-rich token ecosystem and secure the necessary capital to fund their projects. It is important to choose a market maker that is committed to your token’s success, has a strong team of experienced traders and analysts, and complies with the minimum KYC and AML regulations that are in place.
Choosing a good crypto market making will help your token become more liquid, attract sophisticated investors, and get listed on a higher tier exchange. However, be wary of the “ugly” or bad crypto market makers that offer a range of questionable strategies and promise specific trading volume and prices.
Some of these practices are not even legal outside of the crypto world, so you don’t want to get involved with them. If you do, your token could suffer from liquidity crunches and lose its value, which would be disastrous for your project’s growth.
These problems are common in the crypto space, and can be especially pronounced during bear markets. If you’re a new crypto project, it’s crucial to work with a market maker that can survive the vicissitudes of the industry.
The best market makers will be able to achieve all of the key metrics you set for them, including liquidity, tradability, and trading volume. They can also help you develop long-term partnerships to ensure that your token will have the liquidity it needs to grow and reach its full potential.
