- Kain Warwick explains how market makers evolved from exchange listing facilitators to price manipulators.
- Projects sell discounted tokens before launch and coordinate market bids to create artificial demand.
- Warwick warns investors to watch for large token transfers to market makers as a sign of exit liquidity schemes.
Kain Warwick, the co-founder of the decentralized derivatives platform Synthetix, has shed light on what he describes as the deceptive tactics employed by market makers (MMs) to manipulate cryptocurrency prices.
In a detailed post on X, Warwick explained the evolution of these entities, from their initial role in facilitating exchange listings to orchestrating intricate price schemes that often leave retail investors holding devalued assets as exit liquidity.
During the initial coin offering (ICO) boom, Warwick noted that projects were typically required to pay market makers substantial fees, ranging from $50,000 to $300,000 per month, to secure listings on cryptocurrency exchanges and attract significant investors. He pointed out that without these often costly deals, it was nearly impossible for emerging projects to secure the necessary c…
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