Don't be fooled by the name 'market maker'; they are essentially:

Don't think of market makers as the big players anymore; they are more like sellers on Taobao.

One day, I suddenly realized that the "market makers" in the crypto space are actually like - Taobao sellers.

When you want to buy a coin and open the exchange page, there's always someone waiting for you to place an order, right? When you want to sell, the same thing happens; there's always someone ready to take your coin. This "always someone" behind the scenes is actually the market makers doing their job.

They are like suppliers on Taobao, always someone on duty, ready to respond, responsible for setting up the entire market, ensuring you can buy in and sell out.

You can understand it this way 👇

You want to buy? They sell.

You want to sell? They buy.

And they earn a little bit of hard-earned money from the price difference between buying and selling, one transaction at a time.

They don't necessarily believe in the potential of the coin, nor are they here to bet with you on price fluctuations; they primarily survive by "doing more trades and making small profits on the price differences."

Moreover, many new projects just launched have cold liquidity; if no one is placing orders, it’s impossible to trade. At this time, market makers are invited to support the venue, placing some buy and sell orders and keeping the prices from being so outrageous, just like how a new Taobao store invites people to place orders to create a buzz.

So, don’t be fooled by the name "market makers"; essentially, they are:
The stall holders of the market, the facilitators of projects, and the transporters of liquidity.

In a nutshell:
"With them around, the market looks lively; without them, it seems like no one is shopping."

Doesn't it seem less mysterious when you put it this way?
#WEB3 #市商