Market Making
Market Making
31°North Capital excels in market making, a critical component of the cryptocurrency ecosystem. Our market-making strategies are designed to provide liquidity, reduce volatility, and enhance price stability for the tokens we support.
What is Market Making?
Market making involves placing buy and sell orders on an exchange to provide liquidity and facilitate trading. By continuously quoting prices, market makers ensure that there is always a buyer or seller for a given asset, which helps to maintain market efficiency.
Our Market Making Approach
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Liquidity Provision: We provide continuous liquidity for the tokens we support, ensuring that traders can easily buy and sell these assets.
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Price Stability: By actively managing buy and sell orders, we help to reduce price volatility and maintain stable market conditions.
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Volume Growth: Our market-making activities encourage higher trading volumes, which can lead to increased interest and adoption of the tokens.
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Algorithmic Integration: Our market-making strategies are powered by advanced algorithms that optimize order placement and execution.
Benefits of Our Market Making Services
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Improved Liquidity: Enhanced liquidity makes it easier for traders to enter and exit positions, which can lead to tighter spreads and better pricing.
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Reduced Volatility: By smoothing out price fluctuations, we create a more stable trading environment.
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Increased Market Confidence: Reliable market making instills confidence in traders and investors, which can drive further adoption of the tokens.
We make the markets with one goal in mind: Building your Token's Value
We do this by
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Making token easy to buy: We will increase the availability of your token and lower the costs of entry for your investors by keeping a healthy market depth with tight spreads. We will show you metrics of our activity and we will monitor them jointly every day.
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Increasing organic volumes: We will not allow any missing opportunity for your token to increase in volume and price. Whenever an investor decides to buy your token, we will wait with our offers. And we are everywhere your investors are currently trading, covering both Decentralized and Centralized Exchanges.
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Supporting new listings: We will expand your investors’ base on new exchanges where there could be an additional demand for your token. We will advise you on where to list and help in the negotiation process.
What Discourages investors from trading a Token?
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Price volatility: If there is no liquidity in the order books or pools (low market depth), it means that there are relatively few buy and sell orders at these price levels. It makes the market susceptible to rapid price changes even when a relatively small trade is executed. High price volatility can impact the project’s stability and rise the investor’s risk.
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Suspicious metrics: Unfair practices are easy to recognize. When there is no market depth (+-2% Depth) with high trading volume, there is an increased probability that the reported metrics may not reflect actual trading activity. Unhealthy markets lower investors’ confidence and discourage them from trading the token.
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A wide spread and a high slippage: Spread, along with slippage, has a direct impact on investors’ entry and exit costs. Investors hesitate to commit funds if they face challenges in entering but, just as importantly, in liquidating positions at any time at the lowest cost. This is the reason that liquidity must be provided 24/7. High transaction costs make a token less attractive.
Market maker helps overcome these problems
Our algorithms ensure market depth, stabilize the price and offer investors constantly good trading conditions, which, as a consequence, contributes to an increase in organic volume.
Join us as we create more efficient and stable markets for the next generation of digital assets. Partner with 31°North.