Disturbing Truth About Crypto Market Makers Exposed By Synthetix Founder

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🚨 Crypto Market Makers Exposed: The Dark Side of Trading 🚨

Disturbing Truth About Crypto Market Makers Exposed By Synthetix Founder

As the great Russian sage once said, “The truth is like a wild boar: it can be tamed, but only with great difficulty.” And so, dear reader, I present to you the tale of crypto market makers, a story of intrigue, deception, and the eternal quest for profit.

Our protagonist, Kain Warwick, founder of Synthetix, has taken to the hallowed halls of X to regale us with tales of his encounters with these mysterious creatures. Like a master storyteller, he weaves a narrative of market makers, once the darlings of the crypto world, now revealed in all their dubious glory.

The Market Maker Menace

It begins with the ICO era, a time when market makers were the gatekeepers of success. “Practically impossible to raise without having a deal in place with several ‘market makers,'” Warwick recalls, a phrase that would become a mantra for projects seeking to make it big. And big it was, with monthly costs reaching as high as $50k-$300k+.

But, as the saying goes, “pride comes before a fall.” And fall they did, into the depths of questionable activities. “Even by late 2017 Binance was kicking them off the exchange regularly for various shenanigans,” Warwick wrote, a testament to the market makers’ penchant for manipulation.

And so, the game of cat and mouse began. Market makers would cross orders with themselves on tier 3 exchanges, a strategy that proved elusive on more reputable platforms. Ah, but the lure of easy profits was too great, and they persisted in their nefarious ways.

The Call Option Conundrum

Warwick’s tale takes a turn with the introduction of call option structures. “Many ‘market makers’ just yolo pumped tokens, exercised the calls and dumped everything,” he wrote, a phrase that would become a rallying cry for those seeking to expose the market makers’ true nature.

But, as Warwick astutely observed, “good market makers” aim for tight spreads and remain delta neutral. Ah, the eternal quest for balance in a world of chaos.

And then, there’s the matter of Euro calls versus American calls. “American calls were mostly for extraction,” Warwick quipped, a wry observation on the market makers’ love of easy profits.

The Rise of Low Float Meta

Warwick’s tale takes a darker turn with the rise of low float meta. “Low float meta was popularized by Sam Bankman-Fried (SBF),” he wrote, a name that would become synonymous with the market makers’ modus operandi.

And so, the game of exit liquidity began. Market makers and funds would exploit discounted tokens, creating an illusion of scarcity and driving up prices. Ah, the classic tale of supply and demand, twisted to serve the market makers’ interests.

The DWF Labs Debacle

Warwick’s tale takes a personal turn with his account of dealings with DWF Labs. “Synthetix was the first project to be grifted by DWF Labs,” he wrote, a phrase that would become a warning to projects seeking to avoid the market makers’ clutches.

And so, the cycle continues. Projects and investors, blinded by the promise of easy profits, fall prey to the market makers’ tricks. Ah, but the truth is out, and it’s time to be wary of those “market makers” and their dubious practices.

As Warwick so aptly put it, “Be very wary if you see a huge block of tokens sent to a ‘market maker,’ they are likely just prepping you as exit liquidity.” Ah, the eternal vigilance required to navigate the treacherous waters of crypto.

And so, dear reader, the tale of crypto market makers comes to a close. A tale of intrigue, deception, and the eternal quest for profit. May the truth be your guide, and may you never fall prey to the market makers’ tricks.

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2025-03-27 05:44