Dovey Wan, founding partner of Primitive Ventures, has highlighted a significant trend in the crypto market, stating that many so-called market makers are actually market takers. According to Wan, these entities prefer using Time-Weighted Average Price (TWAP) strategies for selling rather than placing maker orders. She explained that market makers typically cease providing liquidity about a week after a new coin's listing due to the high cost of capital and the sheer number of projects.
Wan further noted that firms like Jump Trading, which collaborates with around 30 projects annually, systematically provide liquidity, leading to more stable performance for these projects. She also pointed out that many altcoins can suffer significant declines of 70%-80% with trading volumes in the tens of millions of dollars.
Dovey Wan Reveals Crypto Market Makers Often Act as Market Takers
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.