Market makers have a repute that’s completely disproportionate to what they do. Regardless of what half of crypto Twitter would have you ever consider, MMs, as they’re colloquially recognized, are a impartial pressure when used appropriately. However ought to tokenized initiatives be routinely deploying these instruments on crypto exchanges, and what are the long-term ramifications of producing purchase and promote orders?
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From Drip-Fed to Full Faucet: Operating the Liquidity Spectrum
Liquidity is all relative. Whereas bitcoin’s liquidity trumps the remainder of the crypto market mixed, the depth of the order e-book nonetheless varies significantly from alternate to alternate. A 5 BTC promote order could be absorbed with out blinking on Binance, however try the similar on Commerce Satoshi (24-hour quantity: $15Okay) and also you’ll be rekt by slippage. Making certain enough liquidity throughout a…