#Wintermute - Leading Market Maker in the Crypto Market
- Wintermute is a leading market maker in the crypto market, with its experience, Wintermute has significantly contributed to the successes of well-known projects like OP, dYdX,... This article will help everyone learn about Wintermute and its characteristics, as well as the price-driving style of this project.
What is a Market Maker?
Market Makers are individuals or brokerage firms that provide trading services and create liquidity. Market Makers directly participate in transactions with the position of both seller and buyer.
The responsibilities of Market Makers are:
- Providing liquidity:
- Reducing slippage during transactions:
- Handling large trade orders:
Thus, we can see that the main role of Market Makers is to provide or ensure the LIQUIDITY of a project on exchanges, and Market Makers are not entities responsible for pushing the price of a coin, this is a misconception that most crypto players fall into.
Market Makers will receive requests from the project itself to receive a certain amount of tokens, with the task of providing liquidity for that project, also at a certain price.
However, besides providing liquidity, Market Makers also have services for price manipulation. If the token price reaches a certain level, they will have the right to choose to buy with the amount of tokens received earlier, and when participating in price manipulation, it is very difficult for us to recognize it because the method is very sophisticated.