A quick look at market makers’ market-making logic: the driving force of the bull market or the sickle of the market?

A quick look at market makers’ market-making logic: the driving force of the bull market or the sickle of the market?

All market makers’ strategies depend on market sentiment and trends.

How do market makers "manipulate" the market and profit from it? What are the benefits for traders to pay close attention to market makers? Crypto KOL Tracer said that he made more than $130,000 by paying attention to market makers last month. Understanding market psychology and not being affected by market makers' manipulation is crucial in the current market.

Usually, the behavior of market makers will cause large fluctuations in tokens. Learning to understand the actions of market makers can gain more benefits. The following is the "manipulation" method of market makers shared by Tracer.

Market makers are companies that enhance market liquidity and depth. Their main task is to create demand and supply. Market makers have a large number of tokens, and they can "manipulate" the market and profit from price differences. Among all market makers, there are generally two types:

  • Market Maker as Project Advisor

  • Traditional Market Makers

Both types have the same end result, but slightly different tasks.

Market makers, as project advisors, fully assisted in the launch of the project. With the help of market makers, the project was successful in several key aspects:

  • Sound Token Economics and TGE Construction

  • Successful Token Listing

  • Raising funds from funding agencies

Traditional market makers never participate in low-market-cap projects and do not handle a range of tasks:

  • Supporting market liquidity

  • Bridging the gap between supply and demand

  • Facilitating efficient transactions

The sharp market drop was the "masterpiece" of these market makers.

Partnerships are one of the most popular ways of “manipulation”. The recent collaboration between the messaging intelligence platform iMe Smart Platform and DWF Labs has significantly increased the price of the project’s token. The LIME token has risen by 30% in a short period of time, and the rise is also beneficial to the market makers themselves.

All market makers’ strategies depend on market sentiment and trends.

During the bull run, the main task of market makers is to induce FOMO among crypto enthusiasts and get them to buy tokens. Most of the uninformed users fall victim to these manipulations.

During a bear market, the market maker’s strategy completely changes. Their mission now is to instill fear in you so that you sell your tokens and lock in profits on their positions. Market makers buy at this time and will generate profits in the future.

If you observe unusual movement in a token, with continuous pumps and dumps, then make sure there are market makers involved. Be cautious with these tokens and try to understand the behavior of the market makers. If you can do this, you can profit calmly.

There are many market makers in the market, and here we highlight the three most influential ones:

  • Amber Group

  • DWF Labs

  • GSR

You need to keep a close eye on these market makers to understand their movements and the impact they have on the market.

Amber Group is a well-known market maker trusted by leading institutional and individual investors, with a large and highly qualified team. In addition, the market maker has recently partnered with Pendle.

DWF Labs has integrated with over 60 leading exchanges, providing 24/7 access to the volumes required for trading.

GSR is a market maker with over 10 years of experience. GSR provides deep liquidity and personalized services to crypto projects. GSR builds reliable long-term relationships with token issuers.

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