Korea is about to cause trouble! The Financial Supervisory Service (FSC) of South Korea is considering introducing a market maker system to the virtual currency market.
So what does that mean? Korean exchanges may be forced to require or introduce professional market makers to provide liquidity, reducing price volatility and the bid-ask spread. For retail traders, the trading experience would improve, with smaller slippage.
But be careful—if the market maker mechanism is not designed well, it could become a tool for legitimate “pump-and-dump” style profit extraction by market makers. The Korean market already loves to hype small coins, and with official backing for market makers, volatility could become even higher.
Right now, the ETH contract long/short ratio is 2.75, and the funding rate annualized is 6.61%. Long positions are already very crowded. If South Korea really implements this policy, it could spark a rally in the short term, but be wary of a long-position stampede.$BTC $ETH
So what does that mean? Korean exchanges may be forced to require or introduce professional market makers to provide liquidity, reducing price volatility and the bid-ask spread. For retail traders, the trading experience would improve, with smaller slippage.
But be careful—if the market maker mechanism is not designed well, it could become a tool for legitimate “pump-and-dump” style profit extraction by market makers. The Korean market already loves to hype small coins, and with official backing for market makers, volatility could become even higher.
Right now, the ETH contract long/short ratio is 2.75, and the funding rate annualized is 6.61%. Long positions are already very crowded. If South Korea really implements this policy, it could spark a rally in the short term, but be wary of a long-position stampede.$BTC $ETH