A market maker, someone who owns the market?

Stock Point
2 min readAug 7, 2023

Many people have the idea that market makers are all-powerful in the crypto market. They determine the fate of the market, and we are just their puppets. But is this true?

⚡️Who they are and what they do

✍️A market maker is that market participant who, for a certain fee, can “draw” almost any chart of your token, if you are willing to give enough money to pay off and pump the coin.

🔵That is, the market maker decides the fate of the token by pressurizing the number of coins.

🔵That’s why most often the team, funds and close people of the project have a huge amount of tokens on the listing. More than 50%.

🪙To successfully influence the price of a token, even 30% of the coins of the entire network is enough. Owning 50% will be difficult, because the coins may be in steaking or in hold.

🔩The work of a market maker

There is one main rule: squeeze out the maximum profit in specific conditions.

📈Each project has its own audience and its own limits to which it is profitable to pump token. The bigger the community, the more you can pump the coin, because more people will buy it.

🔵It turns out, market makers can pump and dump tokens. However, usually only tier 3 and tier 5 projects. Top projects work differently.

🔼Tier 1 projects

👀Market manipulators are getting into the game. We don’t know the companies or people who work with them directly. We are left to hypothesize.

🔵They work on the same principles as market makers, but affect all cryptocurrencies: Bitcoin, Ethereum, Link.

💰Considering that Bitcoin at its peak was 1%-1.5% of the global economy. Most likely some manipulators are working with very significant people.

💡Market makers and manipulators are the link in the market that makes it grow. It’s important to understand their logic to really make money in the market.

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