trading

TOP CRYPTO MARKET MAKERS

The top crypto market makers of 2020 are Kairon Labs, GSR, Alameda Research, AlphaTheta, and Bluesky Capital.

What is crypto market making?

Market making of the crypto space is a new uprising compared to the concept of traditional market markers of the yesteryears. This article serves to provide a better understanding of what crypto market makers do. First, let’s examine what market making is by exploring an elemental understanding of the market making process.

Market making in simpler terms is an activity wherein a trader concurrently provides liquidity to both the parties (buyers and sellers) in the financial market. The market is made by quoting prices while buying and selling the asset.

The need for market makers is strong because it enables them to build efficient financial markets by reducing price volatility with fair-price discovery. Consider the case of any given asset, the difference between the selected best bid and the selected best ask is what is known as the bid-ask spread. If the market liquidity is low, the spread will be wider and vice versa. Liquid markets have a tight spread which makes it cheaper for traders to enter and exit trading positions. The spread is an important part of the overall scheme because it has an impact on the volume traded. If we have to understand it in even simpler words, market makers pave the way for tighter markets.

How?

By ensuring tighter bid-ask spread.

The need for top crypto market makers

As explained earlier, efficient financial markets are the need of the hour. Traders and investors are aspiring to conduct trade immediately because under normal circumstances finding the right buyer or seller for the same asset, for the same price wanted by both sides and at the same time can be a herculean task. This tends to increase the gap in the waiting time. The higher the waiting time, the higher the trading costs, lower the liquidity levels, and lower the volumes. In short, it is a lose-it-all situation.

Even if there is no immediate counterparty to fulfill your order with the market maker, they still complete your order. Although it could be risky to market makers considering price changes, these risks can be hedged in several ways.

Market makers charge a nominal fee to complete the order. Since the volume of trade is very high, the spread on each asset is high and covered well which ultimately offsets the risk.

They also make use of algorithmic trading tools and automated market-making strategies that act on real-time data.

How crypto market makers are different

Market makers in the earlier years were synonymous with banks and brokerages. But now, market makers in the crypto space have evolved conceptually for the digital asset industry. The new-age crypto market-makers are different from the conventional ones in several ways:

An extremely active entity that works round-the-clock (crypto markets are always open) with strong monitoring and holds upon little details.
Crypto market makers are used to deal with low liquidity markets
The use of blockchain tracking systems to gain deep market insights
The exchanges have increased in number compared to the stocks that deal only with a few reliable exchanges like NASDAQ.

Market makers do not dictate the price but rather provide orders, reduce spreads, help in the negotiation, strategize, and provide the necessary feedback. A market maker is an expert that understands the working mechanism of order books, technical analysis, and building custom trading software tactics.

Now, let’s take a look at our top 5 picks for the top crypto market makers.

GSR Markets

GSR Markets fundamentally is an algorithmic digital trading firm belonging to Hong Kong. It makes use of its own software for order execution solutions to several digital classes to offer liquidity. The company is credited with deploying numerous models integrated with over 30 liquidity pools taking their trading fees lowest in the markets.

What sets it apart?

Great leadership and a robust team of technology and finance veterans hailing from top-notch world financial institutions.
It has designed intuitive risk management strategies that are engineered for those who find it difficult to manage it.
Its proprietary trading technology can be modified to the trading needs. Its selling and aggregating strategies adjust to real-time liquidity and volatility so that investors can really get the best price.

Kairon Labs

Kairon Labs is arguably the top market maker in space currently, certainly in 2020. Based in the Netherlands and Belgium they offer market-making for all utility tokens using their in-house proprietary software. Kairon Labs has made it to the top of the list as one of the most professional market makers in the crypto space. Famous for its custom enterprise-level algorithms, they understand the value of building algorithms specific to every project. Kairon Labs is pursued as a market maker by some of the best projects out there.

Their experience in building enterprise architecture and designing algorithms for trading has been unparalleled. Their specialty and expertise are in utility tokens and stable coins and in order to extend their expertise, they operate with their own software. The proprietary solutions they have custom-built go a long way in reducing the impact of price fluctuations, and Kairon Labs operates with full transparency and provides liquidity across a plethora of exchanges. They currently possess API connections to more than 120 exchanges.

Offering a huge advantage over their competitors in terms of lower fees, profit split, and algorithmic trading services for digital assets, this makes them extremely attractive to any potential project needing market making. However, they are extremely selective and take their brand reputation very seriously.

What sets it apart?

The team is comprised of legendary crypto traders who were instrumental in aiding famous projects during the 2017 crypto bullrun.
The advantage of an in-depth analysis of order books and projects.
They function in a very pragmatic and precise manner from testing strategies and analyzing them obsessively then deploying market-making strategies that are custom tailored to each project that best fits their individual needs.
With a 24/7 vigilance, trading strategies can be changed according to the demand of the time.
Biweekly reports about trading volumes, P&L, and direct communication with the project through Wechat, Telegram, and Whatsapp.
Conference calls arranged every 2 weeks to discuss future strategies.

Alpha Theta

Alpha Theta is an upcoming market maker that entered the crypto space with a bang and has made the right kind of noise. Its progress is exponential because of their focus is on the melding between algorithmic trading and bots. Alpha Theta is located in Toronto, and with their strategies customized to the needs accordion to the project needs. The best part about Alpha Theta is that they are gung ho about taking even minuscule projects, build up their reputation, and become big.

What sets it apart?

Alpha Theta boasts of some of the most talented team of engineers who have generated robust algorithms crafted especially for the crypto markets.
Alpha Theta is very particular about following AML/KYC policies to maintain compliance in its operations.
They are hugely data transparent allowing the investors to stay up-to-date with market operations.
One can utilize n number of bots for executing different strategies across multiple exchanges
Dedicated trading desks active 24 hours a day

Almeda Research

Alameda Research was first founded in 2017 by Sam Bankman-Fried and Gary Wang and is presently managing above 100 million dollars in assets. They are known for quantitative trading from which it makes a considerable amount of money. However, they have recently diversified into other areas like creating their own OTC trading desk and their new exchange FTX.

What sets it apart?

Trading advantages based on their deep-set research techniques, market neutral algorithms, and market-making partnerships.
Sophisticated trading systems to ensure tight OTC spreads.
Decades of experienced individuals from giants like FB and Google
Full-scale global operation enabling trading across several exchanges

Bluesky Capital

Bluesky is a quant investment management firm that also has dipped its toes into market making and has been quite successful . It helps HNI, institutional investors and large ticket offices to achieve their investment goals by deploying their capital in the global financial markets. The firm currently manages a global, macro-level quantitative program.

What sets it apart?

The firm has a rigorous and proprietary quantitative research methodology as it has invested a heavy amount in disruptive technologies.

Continuous innovation is the mantra here as the firm is constantly on the lookout for tools and datasets and new sources of alpha.
Bespoke risk management frameworks that ensure timely monitoring of risks related to investments.
Provides 24/7 liquidity on the respective cryptocurrency exchanges it has APIs with

Why every project needs a top market maker

Liquidity is seen as an essential ingredient to increase trade volumes so that listing on major and more exchanges is possible. This need is effectively fulfilled by market markers because they aid in creating a market for that token, route the project in such a way that helps it discover its optimal price, and achieve price stabilization for future trading thereby maintaining tighter price spreads allowing investors to put a healthy order for the asset.

Crypto market makers have successfully filled this void especially in times when the crypto markets are evolving at a fast pace. We just hope that this list provides a crystal clear view of the project choices especially for investors who can find out the best providers they can actually work with.

Thanks for reading Top Crypto Market Makers!

Go back to DeFiRev.com HOME
Go to Market Watch

trading

Pump.fun coin founders raise $1.32 billion

Pump.fun coin founders rake in billions

Pump.fun’s latest growth streak began with the conclusion of its public sale on July 12th, which brought in $1.32 billion across private and public rounds. The public portion alone, priced at $0.004 per token, raised $600 million in just 12 minutes. This was followed by the launch of $PUMP trading, with tokens distributed and markets opening within days, making it one of the largest crypto fundraises in recent years.

Following this, the team introduced a creator-fee redirection feature for projects hosted on PumpSwap or still within the bonding curve. This update allowed fees to be reassigned to active community leads in cases of leadership changes, provided there was a clear and verified request.

Pump.fun has also rolled out a public revenue dashboard, giving the community full visibility into daily platform earnings. Over a six-day period, the team bought back 8,740 SOL worth of $PUMP, exceeding the revenue generated during that time. In their words, it was about “putting our money where our mouth is” when it comes to reinvesting in the ecosystem.

Most recently, Pump.fun launched the Glass Full Foundation (GFF), a funding program for standout communities within its ecosystem, which are often called “diehard cults” internally. As part of this launch, the team has already awarded initial grants, with more recipients expected as the program scales.

From record-breaking fundraising to ecosystem reinvestment and targeted community funding, Pump.fun has spent the past several weeks strengthening its position as a leading Solana-based memecoin launchpad.

Go back to DeFiRev.com HOME
Go to Market Watch

trading

Bittensor booms as Chip Mania hits Stock Market: The AI Race and the Potential of TAO

The stock market has been abuzz with the latest trend in technology investments: semiconductor chips. This “chip mania” is fueled by the global race for artificial intelligence (AI) supremacy, as chips are the fundamental building blocks of AI and machine learning technologies. As companies and countries vie for the lead in AI, the demand for advanced semiconductor chips has skyrocketed, leading to significant interest from investors. In this context, Bittensor, with its unique decentralized approach to AI, emerges as a potentially strategic investment.

Nvidia and Bittensor might seem quite different at first glance—one is a big name in computer graphics, and the other is part of the exciting world of decentralized networks. But they actually have a lot in common, especially when it comes to artificial intelligence .

The AI Race and Chip Demand

AI has become a critical component of modern technology, from consumer applications like voice assistants to complex systems such as autonomous vehicles and smart cities. The performance of AI systems is heavily dependent on the processing power provided by semiconductor chips. As AI models become more sophisticated, they require more computational resources, driving the demand for high-performance chips.

This demand has led to a surge in investments in chip manufacturers and designers. Companies like NVIDIA, AMD, and Intel have seen their stock prices soar as they continue to push the boundaries of chip performance. The market has also witnessed the rise of specialized AI chip startups, all competing to create the most efficient and powerful processors.

Supply Chain Challenges and Investment Opportunities

The increased demand for chips has not been without its challenges. The global semiconductor supply chain has been under strain, with issues such as the COVID-19 pandemic, trade tensions, and production bottlenecks leading to shortages. These shortages have highlighted the critical nature of chips in the global economy and have spurred further investment as companies seek to secure their supply chains.

Investors are keenly aware of the strategic importance of semiconductors and are looking for opportunities to capitalize on the chip mania. This has led to a bullish outlook on chip stocks, with many analysts predicting continued growth as the AI race heats up. This also has led to a boon from smart money to look into Bittensor.

Bittensor: A Decentralized Approach to AI

Nvidia and Bittensor might seem quite different at first glance—one is a big name in computer graphics, and the other is part of the exciting world of decentralized networks. But they actually have a lot in common, especially when it comes to artificial intelligence (AI). Let’s break down how they’re both helping to push technology forward:

Nvidia makes the powerful graphics cards that a lot of AI programs need to run. Bittensor, on the other hand, gives people a place to run AI programs on a network that’s spread out across many computers. Nvidia is always coming up with new ideas for its graphics technology, which is super important for video games, AI, and big calculations. Bittensor is also all about new ideas, but it’s focused on making AI services that don’t rely on just one place or computer.

Nvidia has a huge group of developers who use its tech to create all sorts of things, and it helps them out with special software and tools. Bittensor also depends on a community, but it’s made up of developers and people who contribute computer power to the network, and they get rewarded with digital tokens.

Both Nvidia and Bittensor have lots of room to grow, but in different ways. Nvidia is growing because more and more industries need its graphics cards. Bittensor’s growth is tied to how many people start using decentralized AI services and how the whole area of digital currencies and blockchain technology gets bigger.

Now, let’s imagine it’s two years from now, and Bittensor has really taken off. Here’s what that could look like:

Everyone’s Using Decentralized AI

Bittensor’s network is the go-to place for AI services that aren’t tied to one spot. There’s a big group of smart people and companies using and adding to the network.

Even small companies or solo developers can make cool AI stuff because Bittensor makes it easy to get to machine learning tools and computer power.

Amidst the frenzy for traditional chip stocks, Bittensor presents a novel investment opportunity. Bittensor is not a chip manufacturer; rather, it is a decentralized network that leverages the collective power of distributed machine-learning models. By pooling together the resources of miners across the globe, Bittensor facilitates the creation and operation of AI models in a decentralized manner.

The Bittensor network offers several advantages to Nvidia that could make it an attractive investment:

The Bittensor network offers several advantages that could make it a competitor to Nvidia.

Decentralization: Unlike centralized AI services, Bittensor is not reliant on a single entity or data center. This reduces the risk of outages and censorship, potentially leading to a more robust and resilient AI network.

Incentivization

Miners on the Bittensor network are rewarded for contributing computational resources and for the performance of their AI models. This creates a marketplace for AI services where competition drives innovation and efficiency.

Scalability

As the demand for AI grows, Bittensor’s decentralized model allows for easy scaling by simply adding more miners to the network. This contrasts with the physical limitations and capital expenditures required to scale traditional data centers.

Accessibility

Bittensor democratizes access to AI by allowing anyone with computational resources to participate as a miner. This could lead to a more diverse and widespread development of AI applications.

The chip mania in the stock market is a reflection of the critical role that semiconductors play in the burgeoning AI industry. While traditional chip stocks are an obvious choice for investors looking to capitalize on this trend, Bittensor offers a unique angle. Its decentralized network aligns with the principles of blockchain and the growing interest in distributed systems.

DeFiRev.com – HOME

trading

AAVE CRYPTO ASSET SOARING

AAVE SOARING TO NEW HEIGHTS AS IT BREAKS $500 USD

AAVE is on fire reaching new all-time highs in rapid succession. As of today, February 4th, 2021, an earth-shattering volume of nearly 3 billion dollars of AAVE was traded in the past 24 hours.

Aave clocks in a new ATH ever since the v2 migration tool launch

Aave (AAVE) has been going strong ever since February began. In just 5 days, AAVE has increased by 76% and today the token hit a new all-time high of $520. The protocol to date has successfully captured users and has done well against its competition. The latest rally for Aave started on Jan 28 when the protocol announced the v2 migration tool. The tool allowed users to easily migrate all account information including the borrowed positions and staked tokens.

The new tool also facilitates easy migration of user information to the updated protocol. Recently on the 1’st of February, the team from Aave protocol posted an update about the same:

“Today is the last day to vote on the AIP to add $BAL on Aave V2.”

A day following the announcement the proposal was passed by the community. The Balancer (BAL) was added on Aave 2 and it was around that time that AAVE rallied from $284 to $300.

The DeFi platform of AAVE is also rejoicing since the platform is undergoing immense upgrades. As per DeFi pulse, the total value locked in the DeFi protocol is now at $4.96 billion ranked second after Maker which has $5.16 billion in total value locked.

AAVE, which is the 15th largest coin in terms of market cap, also recorded a staggering 24-hour trading period. Its trading volume in the last 24-hours touched $2.4 billion! Treyce Dahlem who is a research analyst believes that the recent surge in AAVE price has been fuelled by the big players and institutions who are becoming increasingly interested in DeFi.

He added, “Billionaire Mark Cuban recently spoke about the “unlimited upside” of DeFi and according to a snapshot of his on-chain portfolio, he is an AAVE whale holding more than $150,000 worth of the token. Grayscale recently filed more than a dozen altcoin trusts with Delaware’s corporate registry, one of those altcoins being AAVE. Additionally, Bitwise added AAVE to their Bitwise 10 Large Cap Crypto Index. These announcements have caused investor sentiment to reach a new YTD high of 83.5 (very high).”