The rise and fall of YGG, the leading guild in the GameFi industry: the role of DWF and the wild growth of the coin market makers.

Original Title: "Market Making Projects Take Turns on the Roller Coaster, Is DWF the Manipulator Behind the Scenes?"

Original Author: Jinse Finance

Recently, the three currencies YGG, DODO, and C98 experienced similar volatile market conditions after the release of funding-related news from DWF Labs. This has further confirmed the speculation of DWF Labs' market-making behavior by some institutions and investors. As a result, investment reference charts have been created for DWF Labs' layout projects to increase the accuracy of identifying the next rising currency.

However, due to differences in investors' levels, some people win both in rising and falling markets, while others suffer heavy losses in such short-term market conditions. Some believe that the behavior of DWF Labs manipulating the cryptocurrency market is too blatant, which will seriously affect the reputation of the cryptocurrency industry and may face even more severe regulation.

So how did DWF Labs affect the price trend recently? Is this a good thing for institutions and qualified investors, or is it considering long-term benefits for market-making project development? In addition to the currencies that have already experienced significant fluctuations after DWF Labs intervened, which other projects has it focused on for future development?

DWF Labs Market Making Methodology

Starting from August 6th, DWF Labs has been releasing financial decision news about YGG, DODO, and C98 successively, which has prompted the continued rise of the three currencies that have already risen. Among them, YGG had the largest increase during the second phase, approaching 50%. However, all three experienced a rapid decline after a day of trading, with YGG having the largest drop of about 70%.

During this volatile market, data shows that institutional selling behavior is the most obvious. After the short squeeze, Wintermute Trading transferred the most goods to the exchange among all institutions, followed by BITKRAFT Ventures, Sfermion, Youbi Capital, and others.

Except for institutions, two major investors also profited from the surge. They deposited a total of 3.57 million YGG (approximately $2.06 million) into Binance, with a certain whale whose address starts with 0x639B depositing 2 million YGG (approximately $1.16 million).

The most controversial DWF Labs transferred 3,649,995 YGG (valued at approximately 2.23 million USD) to Binance at around 10 pm on August 6th. Earlier in February, the organization had obtained 8 million YGG from the YGG treasury and had already transferred them to Binance in two separate transactions, 700,000 YGG (valued at approximately 0.28 USD) on February 14th and 3.65 million YGG (valued at approximately 0.14 USD) on June 19th.

Previously, DWF Labs had been criticized by the public for its "VC+market maker" business model. However, with the exposure of more and more evidence, DWF Labs no longer conceals it and directly displays the sign of providing such services on its official website.

DWF Labs clearly states that it is a global digital asset market maker and a web3 investment company involved in project development at multiple stages. It is engaged in high-frequency cryptocurrency trading and currently trades in spot and derivative markets on more than 40 top exchanges.

DWF Labs mentioned in its "Market Making" business that "we will provide efficient and sustainable liquidity for our partners" in order to attract more commercial clients. Therefore, the performance of YGG, DODO, C98 and other previously market-making currencies has verified the business level and service quality of DWF Labs.

The institution also mentioned that DWF provides cutting-edge market-making execution capabilities to create trading volume and provide healthy liquidity for project-as-a-service. Currently, they have integrated with the top 40 exchanges and traded over 800 currency pairs, including spot and derivatives.

Through market making, DWF allows other market participants to trade the project's tokens with minimal price impact, which can increase market depth and give investors more confidence in the project's market liquidity.

Investment Focus Projects

Due to the extremely similar short-term trends of YGG, DODO, and C98, and the previous similar market-making projects such as CFX, LADYS, APRA, and MASK, many institutions and investors have begun to use them as the market-making rules of DWF Labs, and have created their investment layouts and some currencies that have not yet risen.

From the above figure, it can be found that among the many projects invested by DWF Labs, there are still many currencies that have not experienced the volatile market under the bear market, and their liquidity needs to be improved.

Previously, the DWF Labs website stated that "regardless of market conditions, DWF Labs invests in an average of 5 projects per month." Today, Andrei Grachev, the founder and CEO of DWF Labs, has announced that the company has invested in over 250 projects to date.

Through its investment distribution, it can be seen that DWF Labs has a diverse layout of tracks, with a focus on investing in areas such as cryptographic enterprise infrastructure, DeFi, GameFi, etc.

In addition, DWF Labs also listed some recently invested project names. These include Yield Guild Games, TON - The Open Network, Synthetix, Flare Network, Fetch-Ai, Conflux, and Coin98.

What can be seen is that DWF Labs has already made markets for two of them, YGG and C98, but it is unknown whether the next volatile currency will be in its recently invested projects.

Perhaps because they are well aware that their intervention in the cryptocurrency market can have a significant impact on investors' decision-making behavior, DWF Labs has specifically indicated at the bottom of their official website:

DWF OPTIONS LTD is a venture capital and proprietary trading company engaged in liquidity provision, investment, and holding of derivative positions. However, it does not represent third parties, investors, or clients engaged in the management or custody of cryptocurrency assets or sovereign currencies and derivatives.

Therefore, what DWF Labs wants to express is that there are risks in the market, and investment needs to be cautious. Investors are responsible for their own gains and losses, and we are not responsible for them.

End of the article

As a part of the capital market, market makers have their positive functions, such as adding liquidity to projects, increasing market depth, handling spreads, and activating the market.

However, if as an investor or market maker, one directly manipulates the currency price, disregards the development rules of the project, and relies on manipulating prices to profit from both long and short positions, then this behavior will undoubtedly damage market confidence.

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