In the financial market, there exists a group that is often more powerful than project parties and top VCs, playing a crucial role as dominant investors influencing the market. Why are they so important? Let's find out together!
1. What are market makers?
Market makers (MM) are key players ensuring the liquidity and efficiency of financial markets (especially cryptocurrencies). They are well-funded large investors with extensive experience in trading assets such as tokens, stocks, bonds, forex, and commodities.
The main function of market makers is to provide liquidity to the market by continuously quoting buy and sell assets. They keep the bid-ask spread narrow, create liquidity for trading, and attract more participants. This helps increase the trading volume and profits for market makers.