in string In x this morning, the founder of Synthetix Kain Warwick presented a blatant look at the interior work of the MMS (MMS) makers and their development over the years. Warwyck narrated his personal experiences, both favorable and unfavorable, with various MMS in space and highlighted how some people resorted to doubtful practices – especially during and after the ICO boom.
Cross market makers who take advantage of projects and merchants
Warwick began reminding the first market conditions during the 2017 ICO offer, noting that it was practically impossible to pass without reaching a deal with many “market makers”. Despite the high costs, these deals were necessary to attract large investors and secure lists of prominent exchanges.
However, Warwick emphasized that some MMS may quickly stimulate doubtful activities, often led to the prohibition of first -class exchanges. “Even by late 2017, Binance was kicking them from the exchange regularly for various Chickan,” he wrote. He described how these volumes that dealt with MMS exchange the lesser exchange (or level 3 “by crossing orders with themselves – a strategy claiming to not be repeated on platforms like Binance or Kraken.
One of the main developments in the market making arrangements, according to Loroik, was the adoption of call option structures. It has been determined that “many market makers” only pumped the distinctive symbols, practiced calls and delivered everything “, unlike” the good market makers “who” aim at narrow work differences “and remain” neutral Delta. ” Extraction.
It also follows the rise of “Meta Low Float”, whose generalization is attributed to Sam Bankman-Fric (SBF) and described how you use some MMS and the symbols dedicated to “exit liquidity”. With the spread of fewer distinctive symbols, the high prices become easier for engineers, and those who are rampant can shorten the top on TGE, cover at the bottom and pump it into low liquidity later. “
Warwick also referred to his previous dealings with DWF laboratories, and revealed that Synthetix “was the first project to be prepared by DWF LABS.” He claimed that although such deals may help the project treasury in the short term, they often harm the symbol and society in the long term.
In his closing statements, Warwick urged the market participants to check the processes of carefully distinctive symbol. “Be very careful if you see a huge block of symbols sent to the” market maker “, they are likely to be preparing for you as an exit liquidity,” and he cautioned, and called for greater “transparency” and increasing doubts when facing sudden liquidity screws and deals behind them.
Although Warwick acknowledged that the environment today differs from the peak of ICO, its data highlights the ongoing concerns about the practices of the doubtful market maker – which leads to both projects and investors remain vigilant.
At the time of the press, the total ceiling of the encryption market reached $ 2.83 trillion.
Distinctive image created with Dall.e, Chart from TradingView.com
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