{"id":19285,"date":"2025-03-27T02:31:49","date_gmt":"2025-03-27T02:31:49","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=19285"},"modified":"2025-03-27T02:31:49","modified_gmt":"2025-03-27T02:31:49","slug":"disturbing-truth-about-crypto-market-makers-exposed-by-synthetix-founder","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=19285","title":{"rendered":"Disturbing Truth About Crypto Market Makers Exposed By Synthetix Founder"},"content":{"rendered":"
\n

In a thread<\/a> on X this morning, Synthetix founder Kain Warwick offered a stark look into the inner workings of crypto market makers (MMs) and their evolution over the years. Warwick recounted his personal experiences, both favorable and unfavorable, with various MMs in the space and highlighted how some have resorted to dubious practices\u2014particularly during and after the ICO boom.<\/p>\n

Crypto Market Makers Exploiting Projects And Traders<\/h2>\n

Warwick began by recalling the initial market conditions during the 2017 Initial Coin Offering (ICO) era<\/a>, stating that it was then \u201cpractically impossible to raise without having a deal in place with several \u2018market makers.\u2019\u201d The monthly cost for such arrangements, he noted, could reach as high as \u201c$50k\u2013$300k+.\u201d Despite high costs, these deals were considered essential for attracting large investors and securing listings on prominent exchanges.<\/p>\n

However, Warwick emphasized that some MMs quickly pivoted to questionable activities, which often resulted in being barred from top-tier exchanges. \u201cEven by late 2017 Binance was kicking them off the exchange regularly for various shenanigans,\u201d he wrote. He described how these MMs manipulated volumes on less reputable (or \u201ctier 3\u201d) exchanges through crossing orders with themselves\u2014a strategy he claims they could not replicate on platforms like Binance or Kraken.<\/p>\n

One of the major evolutions in market-making arrangements, according to Warwick, was the adoption of call option structures. He pinpointed that \u201cmany \u2018market makers\u2019 just yolo pumped tokens, exercised the calls and dumped everything,\u201d contrasting them with \u201cgood market makers\u201d who \u201caim for tight spreads\u201d and remain \u201cdelta neutral.\u201d Euro calls, he explained, are less prone to manipulation than American calls because of their exercise restrictions. In Warwick\u2019s words, \u201cAmerican calls were mostly for extraction.\u201d<\/p>\n

He further traced the rise of \u201clow float meta,\u201d attributing its popularization to Sam Bankman-Fried (SBF)<\/a> and describing how some MMs and funds exploit discounted tokens for \u201cexit liquidity.\u201d With fewer tokens circulating, price surges become easier to engineer, and those holding large blocks can \u201cshort the top on TGE, cover at the bottom and then pump it into low liquidity later.\u201d<\/p>\n

Warwick also referenced his prior dealings with DWF Labs<\/a>, revealing that Synthetix \u201cwas the first project to be grifted by DWF Labs.\u201d He contended that while such deals may help a project\u2019s treasury in the short term, they often harm the token and community over the long run.<\/p>\n

In his closing remarks, Warwick urged market participants to scrutinize token transfers carefully. \u201cBe very wary if you see a huge block of tokens sent to a \u2018market maker,\u2019 they are likely just prepping you as exit liquidity,\u201d he warned, calling for greater \u201ctransparency\u201d and heightened skepticism when confronted with sudden liquidity spikes and behind-the-scenes deals.<\/p>\n

Although Warwick acknowledged that the environment today differs from the ICO heyday, his statements highlight ongoing concerns over questionable market maker practices\u2014reminding both projects and investors to remain vigilant.<\/p>\n

At press time, the total crypto market cap was at $2.83 trillion.<\/p>\n

\"Total<\/div>\n","protected":false},"excerpt":{"rendered":"

In a thread on X this morning, Synthetix founder Kain Warwick offered a stark look into the inner workings of crypto market makers (MMs) and their evolution over the years. Warwick recounted his personal experiences, both favorable and unfavorable, with various MMs in the space and highlighted how some have resorted to dubious practices\u2014particularly during […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-19285","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/19285","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19285"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/19285\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19285"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19285"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19285"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}