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How do crypto market makers' manipulate 'markets?

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How are market makers manipulating the cryptocurrency market? Why are they behind booms and busts?

原文标题：《加密做市商如何「操纵」市场？》

Original article by Rekt Fencer

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Have you ever wondered how market makers manipulate the cryptocurrency market? Why are they behind booms and busts? Crypto analyst Rekt Fencer takes you through all about cryptocurrency market makers in this article.

Market makers make money from bid-ask spreads by buying and selling assets to facilitate market trading. There are now two types of market makers:

1. Traditional market makers;

2. Market makers who provide project advice;

加密做市商如何「操纵」市场？

Traditional market makers focus on projects with large market caps, with the primary goal of maintaining a given price, maintaining liquidity in the market, and establishing a trading strategy for unlocking tokens.

The main market makers who provide project advice are:

Help with project fundraising;

Provide liquidity of DEX;

制定 TGE 上的 Token 价格策略；

Help the team cash out;

As a result, these market makers complete all the necessary conditions for the project at an early stage.

套现基本上是在 TGE 上出售团队的 Token 。这样做的原因包括：

Raise funds for project development;

筹集资金回购种子轮或私募的 Token ；

Purchase "Rambo, house and yacht" for project team;

加密做市商如何「操纵」市场？

Market makers' strategies depend on the phase of the cryptocurrency market, which simply revolves around bull and bear markets.

In a bull market, its main tasks are:

给任意规模的 Token 购买者提供机会；

Make people feel FOMO;

Instead, the key tasks in a bear market are:

尽可能便宜地买入 Token ，以迎接下一个牛市的到来；

Do some daily trading on CEXes to avoid being taken down;

Token 在 CEX 上市的价格取决于：

The popularity of the CEX;

The popularity of the project;

The current stage of the market;

Other factors;

As such, it can range from free to millions of dollars. There are three levels of CEX based on its trading volume:

Level 1: Binance, Kucoin, and OKX (real users, high purchasing power, high listing price).

Level 2: Gate, MEXC, and Huobi (low purchasing power, low listing price).

Level 3: Lbank, Bitrue, etc.

如何识别做市商与 Token 的背后合作：

在重大新闻发布之前 Token 暴涨。

Volume increased steadily, but there was no significant price movement.

Repeated patterns on a chart (e.g., booms and busts every two months).

加密做市商如何「操纵」市场？

Trading volume can be real or fake. Some of the volume is actual human trading, while some is caused by artificial robot orders that market makers execute between their accounts.

How do you spot these fake transactions? Please execute a $5- $10 buy order:

If the seller's orders are changing quickly and you can't make small transactions, there may be false trading volume in the currency pair.

If you successfully fill your order, the volume is most likely true.