According to PANews, market makers play a significant role in the cryptocurrency market, often causing substantial token fluctuations. By understanding their actions, traders can potentially increase their profits. Market makers are companies that enhance market liquidity and depth, primarily creating demand and supply. They hold a large number of tokens and can 'manipulate' the market to profit from price differences.
There are generally two types of market makers: those who act as project advisors and traditional market makers. Both types yield the same result, but their tasks slightly differ. Market makers acting as project advisors assist in project launches, contributing to success in key areas such as robust token economics and TGE construction, successful token listings, and fundraising from institutional funds. Traditional market makers, on the other hand, do not participate in low market value projects and handle a range of tasks such as supporting market liquidity, narrowing supply-demand gaps, and promoting efficient trading.
One of the most popular 'manipulation' methods is through partnerships. For instance, the recent collaboration between iMe Smart Platform and DWF Labs significantly increased the project's token price. The LIME token surged by 30% in the short term, which was also beneficial for the market makers themselves.
Market makers' strategies depend on market sentiment and trends. During a bull market, their primary task is to trigger FOMO among crypto enthusiasts and get them to buy tokens. Most uninformed users become victims of this manipulation. In a bear market, the strategy changes completely. Their task is to instill fear in you, prompting you to sell your tokens and lock in their position profits. Market makers buy at this time, generating profits in the future.
Three of the most influential market makers are Amber Group, DWF Labs, and GSR. Amber Group is a well-known market maker trusted by leading institutional individual investors and has a large, high-quality team. DWF Labs has integrated with over 60 leading exchanges, providing 24/7 service for the trading volume required by exchanges. GSR is a market maker with over ten years of experience, providing deep liquidity and personalized services for crypto projects.
