The Market Maker on Crypto Exchanges: Who They Are and Why the Market Needs Them — ASCN

Anyone who’s ever tried trading crypto has probably asked this simple but nagging question: why do some coins sell instantly while others just sit there — for hours or even days?
The answer, as usual, comes down to one word: liquidity. Or more precisely — to the people who make that liquidity happen. The market makers.

Despite all its ups and downs, the crypto market keeps growing. And in that storm, it’s the market makers who help keep the ship steady — narrowing spreads, filling the order book, and making prices a little less chaotic.

So, who exactly is a market maker?

Whenever you open an order book and see neat walls of buy and sell orders — and the price isn’t jumping every 30 seconds — that’s usually the quiet work of a market maker. But who are they really? And how do they differ from a regular trader?

In plain terms

A market maker is someone who continuously places both buy and sell orders to keep trading activity alive. Unlike your average trader, they’re not guessing where the price will go next.
Their goal? Profit from the spread — the tiny gap between the bid and the ask.

How they differ from ordinary traders

Picture two people:

• The trader buys Bitcoin at $60,000, waits for it to hit $65,000, and sells.

• The market maker buys at $59,980 and sells at $60,020 — again and again, hundreds or even thousands of times a day.

See the difference? One plays trends. The other plays volume.
And while traders might take a few days off, market makers don’t. Their bots are alive 24/7 — day, night, weekends, holidays.

Why liquidity depends on them

Low liquidity is every token’s worst enemy. Fewer buyers and sellers mean sharper price swings.
That’s where market makers step in — quietly filling those gaps and keeping things smooth.

They help to:

• tighten spreads;

• ensure trades execute at fair prices;

• dampen volatility.

Without them, a single large order can send a coin soaring — or crashing — in seconds.

How it all works under the hood

Let’s peek behind the curtain. Market making sounds mysterious, but it’s mostly math, automation, and speed. Spoiler: it’s not done by hand.

The core principle

Buy low, sell high — but within microseconds. The idea is constant two-sided trading within a minimal spread.
Buy ETH at $3850, sell at $3852. Two bucks profit. Sounds small — until you realize they do that 10,000 times a day.

Algorithmic trading

No one’s sitting at a desk clicking buttons all day. The heavy lifting is done by algorithms that calculate where to place orders and how to adjust them in real time. Think of it as a bot that breathes with the market.
These algorithms can react in milliseconds — faster than you can blink — to stay ahead of price changes.

Bots and automation

This is where things get interesting. Modern market makers use entire fleets of specialized bots with deep risk controls, cross-exchange setups, and low-latency servers that minimize lag.
Some companies even offer market making as a service — a full turnkey solution for token projects. We’ll get to that soon.

Why exchanges and projects need market makers

Imagine you’ve just launched a token. It’s listed, the marketing is done — but trading is dead.
Investors complain there’s “no liquidity,” the price jumps on every small order, and the chart looks abandoned.
What now? Call the market makers.

Even top-tier exchanges rely on them in 2025 — not just small projects.

For exchanges

Liquidity is the lifeblood of any platform. The more trades happen, the higher the volumes, fees, and rankings on aggregators.
Market makers keep the order book alive, ensuring trades execute fast and prices look stable. Even the illusion of activity can build trust among traders.

In fact, many exchanges offer incentives — reduced fees, even direct payments — for consistent liquidity providers.

For token projects

Without a market maker, one $500 sell order can sink a price 15%. With one — it barely moves.
That stability attracts investors and makes tokens look more legitimate. No one wants to buy into chaos.

It’s become so standard that many projects now include “market making budgets” in their tokenomics, especially during the first year after launch.

For new listings

By 2025, exchanges simply don’t want “dead” listings anymore. Some even require market maker contracts before approving a token. It’s not just about fairness — it’s about protecting the exchange’s reputation.

The double-edged side of market making

Now, here’s where it gets tricky. Market makers stabilize markets — sure. But they can also distort them.
With great liquidity comes great responsibility… and, sometimes, manipulation.

The bright side

A skilled market maker means:

• tighter spreads,

• more stable prices,

• smoother execution.

For illiquid pairs or new tokens, that’s a lifesaver.
But not all of them play fair.

The dark side

Some market makers are hired to “polish the metrics” — boost the illusion of demand.
Ever heard of wash trading? That’s when the same player buys and sells to themselves to fake volume. It’s old-school market theater — and still rampant in parts of DeFi.

The current reality

The good news is, big exchanges like Binance, OKX, and Gate have been tightening the rules.
They now demand transparency and ban manipulative practices. So, while bad actors still exist, it’s getting harder to fake it.

Who actually becomes a market maker?

You might picture Wall Street suits and massive trading floors. In reality, the field’s much more diverse.
Yes, big firms dominate, but solo traders with sharp skills and good bots can get in too.

Professional companies

These are the top-tier players with proprietary algorithms, colocated servers, and teams of quants, risk managers, and engineers.
They usually have direct contracts with exchanges — often earning commissions or fixed fees for maintaining activity.

They bring scale, reliability, and compliance. Pricey? Definitely. Worth it? Usually yes.

Hedge funds and institutional players

Some funds double as market makers for their own tokens. They already have liquidity and expertise — so why not?
The upside: full control.
The downside: potential conflict of interest. When you’re both investor and liquidity provider, objectivity can get blurry.

Independent traders with bots

Here’s the fun part. You don’t need to be a giant to start.
Tools like Hummingbot, custom Python scripts, and cheap VPS servers make it possible for individual traders to play the game.
All it takes is some capital, good risk management, and an understanding of how the order book works.

Competition is tough, but it’s a real entry point — especially on smaller DEXs.

Well-Known Market Makers in the Crypto Space

If you’ve been following crypto for a while, you’ve probably heard these names. Some have become almost legendary — and not always for the best reasons — while others continue to thrive in 2025.
Here’s who’s really pulling the strings behind the scenes.

Jump Trading, GSR, Alameda Research (before FTX’s collapse)

• Jump Trading — one of the oldest and largest players in the industry. Besides market making, they’re heavily involved in venture investments, DeFi infrastructure, and blockchain development. They work with dozens of exchanges and projects, including Solana, Aptos, and Sui.

• GSR — a firm with deep roots in traditional finance. They offer “market making as a service,” signing formal agreements with projects and often appearing in listing announcements. Their reputation? Stable and transparent.

• Alameda Research — yes, that Alameda. Before FTX imploded, they were the biggest market maker around, mixing high-frequency trading, exchange lobbying, and aggressive support for their “in-house” tokens.
  After the FTX crash in 2022–2023, they became a case study in how not to combine liquidity provision and self-interest. A painful but valuable lesson for the industry.

MarketMaking.pro, Kairon Labs, Wintermute

• MarketMaking.pro — a Russian-based team working with global crypto projects. They focus on both centralized and decentralized exchanges and have made a name by supporting smaller tokens that larger firms tend to ignore.

• Kairon Labs — specialists in algorithmic market making and new listings. They’re partnered with major exchanges like KuCoin, Bitget, and MEXC. In 2025, they’re widely considered one of the most reliable market-making partners around.

• Wintermute — a heavyweight from the UK. Beyond market making, they’re active in OTC trading, DeFi liquidity, and startup investments. They’ve worked with Tether, NEAR, Optimism, and other top projects.
  After recovering from a 2022 DeFi wallet hack, Wintermute rebuilt its infrastructure and came back stronger — a solid example of resilience done right.

Market Makers: The Backbone or the Threat of the Market?

A market maker isn’t just another trader on the exchange. They’re the quiet architects of liquidity, the ones shaping how stable — or shaky — a market feels.
Their role in crypto is hard to overstate. But is it all as good as it sounds?

Who actually benefits from market makers

Strip away the myths, and it’s pretty clear: everyone who wants a stable, growing market needs them.

• Exchanges gain liquidity, trading volume, and reputation — which translates into more users and higher valuations.

• Projects get predictable pricing, consistent activity, and investor confidence.

• Traders enjoy tighter spreads, faster order execution, and a smoother ride overall.

And during market panics, when everyone else runs for the exit, guess who’s still placing orders and holding the line? Exactly — the market makers.

How to tell a fair market maker from a manipulator

Sadly, not all of them play by the rules. Sometimes you’ll spot the signs — flat charts, suspiciously steady volumes, no reaction to news. Those are warning lights.
Some “liquidity providers” care more about optics than actual market health.

Should we be afraid of their influence?

Good question. The short answer: not really — but you should understand how they operate.
Market makers aren’t the villains of crypto. They just play by a different rulebook.

If you’re new to trading, watch the order books, study how a token behaves, and learn to tell organic volume from artificial.
If you’re running a project, partner only with verified MM firms and don’t try to fake activity — that trick never lasts long.

By 2025, market makers are no longer shadowy figures hiding behind screens. They’re professionals whose work decides whether your token gains traction or disappears into the noise.
The key is simple: transparency, strategy, and accountability.

And here’s the good news — the market is getting smarter every year. Manipulation still exists, but it’s harder to hide than ever before.

If you want to see how market makers actually move liquidity in real time, ASCN.AI can help.
It digs through on-chain data, tracks large wallet movements, liquidity flows, and trading behavior — and shows you what’s really happening inside the order book.
Instead of hours of watching charts, a few clicks and you’ve got the whole picture — who’s active, what’s moving, and why.