New tokens are often subject to sharp price swings during launch. Without sufficient liquidity, even small buying or selling pressure can trigger significant drops — whether it’s BTC, SOL, TON, or any other popular token.
Take the launch of TON, for example. Despite high trading activity, there were no catastrophic price drops on day one. Volatility existed, of course, but with the right mechanisms in place, it was manageable.
The key? Market makers.
What Market Makers Do
Market makers are the backbone of a liquid and stable market. They continuously provide buy and sell orders, creating a buffer that smooths out sudden spikes in demand or supply.
By doing so, they:
Reduce slippage for traders
Stabilize prices across exchanges
Ensure tokens remain tradable at fair market rates
Think of them as the intermediaries that prevent chaos in otherwise volatile markets.
Tracking Market Maker Activity
Through my work in crypto analytics, I’ve observed that market makers tend to favor certain exchanges due to program structure and incentives. Two notable examples include:
📍 One of them is WhiteBIT, with 35M+ users and a capitalization of $39B according to CoinCodex. Its Market Making Program offers favorable conditions for market makers, where fees depend on maker transaction volumes over the past 30 days - up to -0.012% maker fees.
While market makers profit from capturing the spread between buy and sell orders, regular users get a smoother trading experience and lower costs. Some of my clients initially had problems like order delays, which could cost market makers money - yikes! WhiteBIT’s program solved this thanks to extra API perks, like:
- Webhook notifications - for deposits, trading and main balance updates
- WebSocket - real-time order book info so you never miss a beat
These tools allow market makers to operate efficiently, react quickly to market changes, and ensure price stability for users.
📍 Another notable option is BitMEX Market Maker Programme, which offers Regular and Senior MM Programs with six levels of market makers, whose earnings depend on monthly trading volumes.
For example, in the regular programme, a market maker who meets the trading requirements across a certain number of contract groups can be placed at Level 4. At this level, they receive rewards based on their maker volume, with a minimum reward floor, providing clear incentives to consistently supply liquidity. 🧩
Why It Matters
Programs like these are what help popular tokens remain relatively stable, minimizing large spreads between trading pairs or across exchanges. Without market makers, every small order could create unnecessary price swings, making trading riskier and less predictable.
💬 Interested in learning more about how market making impacts token prices and trading strategies? Feel free to reach out.
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