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Topic: Market making is good, or BAD for crypto because... (Read 429 times)

legendary
Activity: 3346
Merit: 1191
You can't have successful business without marketing! There are many types of marketing, like there are many different businesses, for the right business you need the right type of marketing. What is good and bad marketing depends on what kind of business you are advertising. Depending on the product, you need to understand your audience, your capabilities, to have targets.
Marketing is a science these days, if anyone thinks its easy to do it, is wrong. Good marketing should lead to a better results, bad will not move your business, its summing up this question. How to have good marketing depends on many things, providing more informations about it can help us in giving more valuable advices about what can be good marketing for a specific business.
full member
Activity: 1330
Merit: 147
Have you heard an information from chinese?

Currently, they will support/use blockchain in their industry as a whole which is mean they will accept as well cryptocurrency. I know, this country had banned bitcoin and friend's a few years ago but now they will accept it.

And I guess the price movement is going good, you can see it yesterday which is the price of bitcoin just went up for several percents and was followed by several altcoin. This just pointed out the regulation from the government is extremly affected to the price movement of them.
full member
Activity: 1638
Merit: 122
market making ? hmmm . do you mean marketing on the other word  ? if it is then id say its both good and bad  .
 why would i say both ? well good because every business/project or startups will need to market themselves so that they will get be notice by the public itll only becomes bad once they will use some kind of promising words that itll lead to lies  .

 sad to say but there are others that are doing  these because they think that is the only way to gather massive costumers  .
sr. member
Activity: 784
Merit: 251
https://raiser.network
It is not literally you say its bad. market is market, everyone is going to trade there everyday. choose their own coins or altcoins to earn profit. then it is good to us crypto users especially to a trader like me. issues is always been there. nothing won't change that. it is you if you are gaining info by yourself. with high demands market is going strong and looks bullish. with the trend and wide spread popularity it may help the market to rise its daily trading volume. with that crypto market will always be good to us and gain profit. mass adoption will increase.
legendary
Activity: 2898
Merit: 1253
So anyway, I applied as a merit source :)
then what is the point of having it?
You ask this same question to the shitcoin bagholders and they will cite strange reasons like Bitcoin network is slow, fees is high and so on. If they dont like these things then they are free to go for other options, namely shitcoins. The purpose of producing them is for the devs of that coin to make money. Simply every altcoin is this after coming to bitcoin. On the other hand, people become emotional if you point this out but they will continue to defend their altcoin.

Quote
You cannot sustain artificial liquidity right? What happens when companies stop paying fees, or stop paying the market maker service, then what?
Yup, its more of market manipulation. You stop buying when you see its not worth it. People understand this too. But the advisors and devs are quick to cash out the money and sell of the project to a new owner. Cheesy
sr. member
Activity: 826
Merit: 281
In my opinion it is good for crypto, in addition to increasing profits for airdrop hunters, traders, prize hunters and developers, their crypto that has been made will be more popular and increase the number of investors (if the project is good and serious). an example is bitcoin which can reach 18,000 US dollars despite a drastic decline until now.
hero member
Activity: 2352
Merit: 953
Temporary forum vacation
Without liquidity, cryptocurrencies will die. It doesn't matter how large or small the cryptocurrency is, it needs liquidity in order to be a viable method of exchange. Personally, I believe market making for high profile cryptocurrencies is a good thing, it ensures that people can liquidate their funds should they ever need to.

What I don't believe in, is market making for shitcoins. By producing forced liquidity, people can be fooled into think it will always be there, which likely wont be the case when the project exit scams or collapsed. I also don't like when small exchanges rely on market makers or outsource liquidity, that's a dodgy tactic.

This is why only so few crypto can really be good and considered cryptoCURRENCY in my opinion,,, the problem is every other token is trying to be the same. For me,,, if you have to make a market for it, then what is the point of having it? You cannot sustain artificial liquidity right? What happens when companies stop paying fees, or stop paying the market maker service, then what?
sr. member
Activity: 1274
Merit: 267
Without liquidity, cryptocurrencies will die. It doesn't matter how large or small the cryptocurrency is, it needs liquidity in order to be a viable method of exchange. Personally, I believe market making for high profile cryptocurrencies is a good thing, it ensures that people can liquidate their funds should they ever need to.

What I don't believe in, is market making for shitcoins. By producing forced liquidity, people can be fooled into think it will always be there, which likely wont be the case when the project exit scams or collapsed. I also don't like when small exchanges rely on market makers or outsource liquidity, that's a dodgy tactic.
Are you trying to say that market making has two sides, bad and good, for crypto?

For me there is no bad things caused by market making, shitcoin of course is bad and I agree with you in term of liquidity. But, how we define shitcoin is probably different each other.

So, I assume that market making is overall a good thing for crypto since everything needs liquidity, either good coin or shitcoin.
legendary
Activity: 2030
Merit: 1189
Without liquidity, cryptocurrencies will die. It doesn't matter how large or small the cryptocurrency is, it needs liquidity in order to be a viable method of exchange. Personally, I believe market making for high profile cryptocurrencies is a good thing, it ensures that people can liquidate their funds should they ever need to.

What I don't believe in, is market making for shitcoins. By producing forced liquidity, people can be fooled into think it will always be there, which likely wont be the case when the project exit scams or collapsed. I also don't like when small exchanges rely on market makers or outsource liquidity, that's a dodgy tactic.
hero member
Activity: 2352
Merit: 953
Temporary forum vacation
Will you get an answer when you know where you are.
Are you an ICO Investor, Bounty Hunter, Trader or other part in the circulation of crypto currencies?
I think Crypto has a good future, the fact is that bitcoin still has a higher value than the price of gold.

Bitcoin has a higher value than gold? What makes you think that? Because 1 Bitcoin is more expensive than 1 ounce of gold? Try 1 kilogram, which is what is usually considered the international standard for 1 unit of gold. ounce is just a market thing, like how people use mBTC instead of BTC.
hero member
Activity: 2870
Merit: 594
Is Market making is good, or BAD for crypto.
If it's good then why?

It's good for the liquidity of the market, the more market marker the better.

And if it's bad then why?
Give me your opinion

The thing is that crypto is decentralise and open, meaning anyone can be a market maker here. Specially big players they can manipulate the price to their advantage and we small players are going to be affected negatively unless we really know to play and go with them.
legendary
Activity: 2534
Merit: 1397
I have my opinion about that.

This is YTD time frame (Start from January 2019 to now)
What I can see we are in good market now, above 200Billion cryptocurrencies market cap is healthy. We just got yearly high around July and what we experiencing now is just a correction for sure.
We can see more upside price action this month for sure.
My BAD side if we can see a huge decrease on volume,like maybe if we fall below 200Billion market cap, then that's the time I can say that we are in trouble. Well, only my 2 cents.
newbie
Activity: 20
Merit: 5
I would say good, because any more liquidity on the market is always a positive in my eyes
hero member
Activity: 2212
Merit: 805
Top Crypto Casino
Is Market making is good, or BAD for crypto.
If it's good then why?
And if it's bad then why?
Give me your opinion

In my opinion, Market Makers are an essential part of the Crypto space especially when it comes to trading. One necessity for every market is having liquidity. You don't know how it feels to get your orders in only to wait for hours before they execute – what if you're trying to take advantage of a pump and then your sell orders don't get sold until the price sinks back? It's definitely not the best feeling. So It's a good thing we have market makers on various exchanges
full member
Activity: 798
Merit: 109
https://bmy.guide
A market maker is just like a whale in crypto space, they make the crypto market volatile or sometimes going to dump and then pump in a few weeks. They are broker firm to provide a good price situation or in a sale option for the investors just to have the financial markets volatile. So, I think this is is good for crypto that creates a very volatile price. This is also good for traders because the market maker is was manipulating the demand and supply.
hero member
Activity: 1806
Merit: 672
Did you just complicated the term "trader" into a market maker? Or are you referring to the real market makers which are financial institutions trading assets to earn income? Either way I only have one answer and that is overall it's good for the market. They are the ones kickstarting everything in trading as well as  making the market overall as an active place. If you notice that the daily traded volume is down you will see that a bear market is also strong as with a lesser trading activity it only just signifies a decrease in demand.  Traders/Makers in the market even though they can push down prices they are also the ones taking profit when they are pumping up the prices as well.
legendary
Activity: 2982
Merit: 1153
I believe Market making is good for cryptocurrency because it creates supply for those who wants to buy it and demand for those who wanted to sell their cryptocurrency.   Here is one of the explanation why Market Maker is good for  any stock holder including crypto holder.
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What Market Makers Do
Market makers literally make markets for stocks, thus their name. They typically are banks or brokerage companies that stand ready every second of the trading day with firm ask-and-bid prices. This is good for you because when you place a market order to sell your 1,000 shares of Disney, a market maker will purchase the stock from you, even if it doesn't have a seller lined up. The same process happens when placing a market order to buy shares of stock.

Read more here: https://www.thebalance.com/what-is-a-market-maker-and-how-do-they-make-money-4053753
hero member
Activity: 1330
Merit: 569
Is Market making is good, or BAD for crypto.
If it's good then why?
And if it's bad then why?
Give me your opinion


If I get this correctly, then it means if manipulating the market is either good or bad but the truth is deciding whether its good or bad really depends on the side of the coin you belong to decide whether is good or not. For someone who took advantage of the market fixing would surely vote for it being the best thing to happen or he made the best decision because he benefited from it. On the other hand however, its really damaging the market because it does not give room for fair play in the market as that has a discouraging effect on the market and in the long-term people lose trust in the entire market.
hero member
Activity: 1162
Merit: 516
1BTC Welcome Bonus
Is Market making is good, or BAD for crypto.
If it's good then why?
And if it's bad then why?
Give me your opinion

First of all I feel the question is not at all clear and if you ask me binding the market is good or bad means I will say it is good only for the cryptocurrency industry.
Market research and investment needs to go with the project and it will be helpful to get the market move ahead.
This market making also went to hands of many exchanges since IEO emerged.
sr. member
Activity: 1876
Merit: 318
In my opinion, market making is good because it makes crypto transactions lots of choices, it can also increase investors.
But don't make too much market making because later there will be less qualified markets. Then of That is because there
are no institutions that control the market, we ourselves must be able to choose a good market itself. Or if there are people
who plan to make market making, make it with good planning and specific goals. Do not damage the market itself.
Now there are actually a lot of good markets, plus the price of bitcoin which is starting to improve from $7900 to $8200 right now.
So while it is better to optimize the existing market rather than buiilt market making.
hero member
Activity: 2310
Merit: 532
DGbet.fun - Crypto Sportsbook
Market making for each cryptocurrency varies, just think of bitcoin compared with other altcoins available in the market. It has got its own platform where the demand to supply availability creates the value rise, similar thing is with Litecoin. Ethereum got its own smart contract, likewise every top altcoins have a control without any authority making the moves. This way the growth happens independently. The same isn't happening with the entire list of altcoins available in CMC.
legendary
Activity: 2324
Merit: 1035
Not your Keys, Not your Bitcoins
Market making is good for any market or currencies as it creates liquidity. If you want to become a market maker you might want to consider using a bot like hummingbot that allows you to create liquidity on decentralized exchanges as well as on major centralized exchanges like Binance & perform arbitrage trades. But be careful as you will compete with other people which are probably using the same software and/or strategy like you or even more sophisticated ones. Execution speed is imperial when doing market making - which is basically profiting from the bid/ask spread.
hero member
Activity: 2590
Merit: 644
Is Market making is good, or BAD for crypto.
If it's good then why?
And if it's bad then why?
Give me your opinion
^ Other cryptocurrencies that undeveloped was considered as bad, those came from ICO's project that failed on their launching. But it is different from bitcoin. Bitcoin is good for investing in the long term, and I think it doesn't give bad sides to the market. Even it has encountered downtrend but it will bounce again. The entire crypto market is very volatile, I can't decide whether bad or good because sometimes it will raise up and make a better profit. It will depend on people's adoption of bitcoin and the entire market will follow.
legendary
Activity: 2702
Merit: 4002
The bitcoin algorithm makes it possible to control the entire market.
Mining (maker) creating new coins that can be sold "in case not everyone wants to sell their currencies" This creates a kind of scarcity and thus increase the price of a currency, which forces some greedy to sell their currencies.

the Bitcoin model makes things seem decentralized without central intervention.

This is about Bitcoin, but many cryptocurrency models are economically bad.
sr. member
Activity: 1918
Merit: 256
Just.bet - Decentralized On-chain Casino
Will you get an answer when you know where you are.
Are you an ICO Investor, Bounty Hunter, Trader or other part in the circulation of crypto currencies?
I think Crypto has a good future, the fact is that bitcoin still has a higher value than the price of gold.
newbie
Activity: 286
Merit: 0
Is Market making is good, or BAD for crypto.
If it's good then why?
And if it's bad then why?
Give me your opinion
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