A few days ago, I said that $IDOL 's market-maker play was actually a new way for market makers to operate.
The traditional approach is to quietly build a position, like #AIN . But these days there’s so much more monitoring, and information is much easier and faster to access than before, so it’s not easy to lie in wait.
#IDOL is an example of a new, more dynamic approach: building a position quickly and discreetly, dynamically trading against retail investors and playing the swings. This puts very high demands on the MM. It may be called controlling the market, but in reality, it’s about controlling people’s sentiment. 99% of retail investors, myself included, can hardly withstand swings of dozens of points up and down in a single day.
That’s how $JCT was played yesterday.
Actually, you can get a rough idea of whether the market maker is still active by looking at OI:
#IDOL 's OI hasn’t decreased significantly; it has stayed between 800M and 900M.
$AIN saw a major outflow, so to speak: it fell from 300M to 144M, a decrease of half.
So right now, #IDOl is moving sideways in swings, while #AIN is generally trending down.
But these are all relative figures. Keep in mind that #AIN 's absolute OI is still very large, so they could easily drive the price down in a wave, absorb the tokens, and repeat the steps above.
The traditional approach is to quietly build a position, like #AIN . But these days there’s so much more monitoring, and information is much easier and faster to access than before, so it’s not easy to lie in wait.
#IDOL is an example of a new, more dynamic approach: building a position quickly and discreetly, dynamically trading against retail investors and playing the swings. This puts very high demands on the MM. It may be called controlling the market, but in reality, it’s about controlling people’s sentiment. 99% of retail investors, myself included, can hardly withstand swings of dozens of points up and down in a single day.
That’s how $JCT was played yesterday.
Actually, you can get a rough idea of whether the market maker is still active by looking at OI:
#IDOL 's OI hasn’t decreased significantly; it has stayed between 800M and 900M.
$AIN saw a major outflow, so to speak: it fell from 300M to 144M, a decrease of half.
So right now, #IDOl is moving sideways in swings, while #AIN is generally trending down.
But these are all relative figures. Keep in mind that #AIN 's absolute OI is still very large, so they could easily drive the price down in a wave, absorb the tokens, and repeat the steps above.
