@jonathanzfolcot
Market-making firms play a vital role in token liquidity and price discovery by continuously providing buy and sell orders. Their activity narrows spreads, enabling smoother trading and attracting more participants. For smaller tokens, market makers are essential in preventing illiquidity and excessive volatility. By absorbing imbalances, they stabilize markets and help determine fair value. However, concentrated control by a few firms raises risks of manipulation or sudden withdrawal of liquidity. Partnerships with reputable market makers can enhance credibility, while weak support leaves tokens vulnerable. Thus, professional liquidity providers shape both short-term price stability and long-term market confidence.
0 reply
0 recast
0 reaction