One-sided trading activity, without any buy orders to maintain it. This is a common risk signal directly pointed out in Binance's latest "Market Maker Risk Warning". I found this quite insightful. Over the past year, most Altcoin have been steadily declining in value. Many projects claim to have found market makers, but in reality, they may have found "high-end coin-selling institutions." In a normal market-making process, there should be both buy and sell orders, providing liquidity, narrowing price spreads, and stabilizing the market. However, some so-called market makers only sell and don't buy. Last year, I discussed this with many friends, and the conclusion was that market makers' logic is simple: since the price is likely to fall anyway, they sell first and then buy back at a lower price later. Cryptocurrency prices generally peak upon listing and then steadily decline, ultimately becoming a game of who can exit first. What's most frustrating is that some projects clearly announce the release of tokens, and the airdropped amount is small. The trading volume appears high, but the price keeps plummeting like it's on Viagra. You can't understand where the tokens are coming from or how they can keep selling. Undoubtedly, this isn't normal market making; it's highly likely a guise for continuous unloading of shares. If this continues, the country will cease to exist, and everything will fall into chaos. Binance has brought this issue to the forefront this time. I think the whole article was written relatively restrainedly, without naming names, but the meaning is very clear. This is not only a risk warning, but also a public rebuke to a group of market makers and project teams, and even has the flavor of an industry declaration. Especially in the current market conditions, this is also a warning to all project owners: who did the project owner hire as a market maker, how were the tokens distributed, and how did the other party sell them? They can't just deny knowing and deny it. They shouldn't pretend not to know anymore. Project owners have a responsibility to conduct due diligence and to continuously monitor the situation. It was also explicitly stated that chambers of commerce that violate regulations by engaging in market making will be blacklisted, and reporting of violations will also be allowed. This is tantamount to a message to market makers and project teams: stop packaging this fake market making and real distribution as normal market behavior. Binance is taking the initiative to assume industry responsibility and is preparing to redefine the rules for this industry. Market Maker Risk Warning | _2024111120230_ |