Tonight, I want to discuss with everyone a concept that everyone in the crypto market has heard of — that is, Market Maker or MM. Many of you might still be unclear about this, so today I will explain in detail what a market maker is and why it is so important.

In summary, MM are liquidity providers — they can be exchanges, investment funds, large financial organizations, or whales in the market. They are the main players, with money, power, and the know-how to play this game.

I see the benefit of MM as providing liquidity for the entire market. When you trade, your orders are matched thanks to MM, not just because the exchange or buyers and sellers meet. Additionally, they help maintain the prices of coins, profit from bid-ask spreads and commissions. Especially when a new coin is listed, MM act as a bridge between us and the exchange to influence the price.

But this is the part I don’t like very much. MM also have significant disadvantages for regular investors. They pump and dump, manipulate prices, continuously sweep liquidity — and the worst part is they can wipe out our stop-losses :)) Because they have money and power, they can manipulate almost everything in this market. No one controls them, so they do whatever they want.

Overall, I think MM have both benefits and risks. They provide liquidity, create a playground, foster competition, and reduce risk by stabilizing prices. But they also know exactly how to take our money. I often say that MM know how to make us excited, but also how to make us despair. So understanding what a market maker is and how they operate is very important.

I’m curious about what everyone thinks — are MM good or bad? Comment below to discuss with me.