How did DWF Labs affect the currency price trend in the near future? Is this good for institutions and qualified investors, or is it for the development of market-making projects to drive long-term inclusive benefits? In addition to the currencies that have caused violent fluctuations after its intervention, what projects has it focused on that have not been promoted?
Original title: "Golden Observation | Investment Map into Trading Guide DWF Labs Again Provokes Controversy"
Written by: Climber, Jinse Finance
In recent days, the three currencies of YGG, DODO, and C98 have gone out of the similar market of skyrocketing and plummeting after the market released the news of DWF Labs related capital actions. This made some institutions and investors further confirm the previous speculation about DWF Labs’ repeated market-making behavior. For this reason, the projects related to the layout of DWF Labs were made into an investment reference map to increase the hit of betting on the next rising currency Rate.
However, due to the difference in the level of investors, some people will win both ups and downs, while others will suffer heavy losses in this short-term market. In this regard, some people believe that the traces of DWF Labs manipulating the encryption market are too blatant, which will seriously affect the reputation of the crypto, and may be subject to stricter supervision.
So how did DWF Labs affect the currency price trend in the near future? Is this good for institutions and qualified investors, or is it for the development of market-making projects to drive long-term inclusive benefits? In addition to the currencies that have caused violent fluctuations after its intervention, what projects has it focused on that have not been promoted?
DWF Labs-style market making
Starting from August 6th, DWF Labs successively released news about funding decisions of YGG, DODO, and C98, prompting the three currencies to continue to rise despite their already rising prices. Among them, the biggest increase in the second stage is YGG, which is close to 50%. But all three of them fell back quickly after a one-day market. It was also YGG with the biggest drop of about 70%.
In such a round of sharp rise and fall, data show that the behavior of institutional shipments is the most obvious. After the short-squeeze market, Wintermute Trading transferred to the exchange to ship the most among all institutions, and others include BITKRAFT Ventures, Sfermion, Youbi Capital, etc.
In addition to institutions, two large investors also made profits from the skyrocketing. They deposited a total of 3.57 million YGG (about 2.06 million U.S. dollars) to Binance. Among them, a whale whose address started with 0x639B deposited 2 million YGG to Binance. YGG (approximately $1.16 million).
The most controversial DWF Labs transferred 3,649,995 YGG (the current price is US$0.61, or a total of US$2.23 million) to Binance at around 10:00 pm on August 6. At the beginning of February this year, the institution had obtained 8 million YGG from the YGG treasury, which had been transferred to Binance in two installments before that, which were 700,000 on February 14 (the current price of YGG was about 0.28 US dollars) and 3.65 million pieces on June 19 (YGG current price is about $0.14).
Previously, DWF Labs has been criticized by the outside world as a "VC + market maker" business model. Since then, as more and more evidence came to light, DWF Labs no longer concealed it, and directly put up a signboard to provide such services on its official website.
DWF Labs clearly stated that it is a global digital asset market maker and a multi-stage web3 investment company for project development, and is engaged in high-frequency cryptocurrency transactions. It has currently conducted spot and derivatives market transactions on more than 40 top exchanges.
In order to attract more commercial client project parties, DWF Labs mentioned in the "Market Making" business that "it will provide our partners with efficient and sustainable liquidity." Therefore, the similar trend of the three currencies of YGG, DODO, C98 and other currencies that have been market-made before just verifies the business level and service quality of DWF Labs.
The agency also mentioned that DWF provides cutting-edge market-making execution capabilities to generate transaction volume and provide healthy liquidity for projects as a service. Currently, they are integrated with the top 40 exchanges and trade over 800 currency pairs, including spot and derivatives.
For the cooperative project parties, DWF stated that it does not charge any entry fees, monthly fees, transaction fees, market-making cross fees or any additional fees. In addition to providing high-touch and 24/7/365 coverage,
Through market making, DWF said that it can allow other market participants to trade the tokens of the project side with less impact on prices, which can increase market depth and give investors more confidence in the market liquidity of the project.
However, such blatant market manipulation has drawn condemnation from the outside world. Some community KOLs believe that DWF Labs is simply a cancer in the crypto, and this move will undoubtedly damage the balance of the encryption market.
Netizen @yinge133 said that although profits and losses are market behaviors, investors need to be responsible for themselves, but such malicious manipulation of the market will definitely be caught in the stock market. Investors who have suffered losses are advised to sue DWF in Singapore, the headquarters of DWF Labs. Moreover, it also posted an analysis of another netizen exposing YGG's manipulative behavior.
Investment map key projects
Since YGG, DODO, and C98 have very similar trends in the short term, and have previously made similar projects such as CFX, LADYS, APRA, and MASK. Therefore, many institutions and investors have begun to use it as a DWF Labs-style market-making rule, and have made their investment layouts and some currencies that have not yet been promoted.
After sorting out its investment landscape, Jinse Finance found that the projects with an investment amount of more than US$5 million are as follows:
It can be seen from the above figure that among the many projects invested by DWF Labs, there are still many currencies under the bear market that have not yet experienced sharp rises and falls, and their liquidity needs to be increased.
The official website of DWF Labs previously stated that "regardless of market conditions, DWF Labs invests in an average of 5 projects per month." Today, DWF Labs' executive founder Andrei Grachev said that DWF has invested in more than 250 projects. .
It can be seen from its investment distribution that DWF Labs has a diverse layout, and the key investment areas are encrypted enterprise infrastructure, DeFi, GameFi, etc.
In addition, DWF Labs also lists some of the project names of recent investments. These include Yield Guild Games, TON - The Open Network, Synthetix, Flare Network, Fetch-Ai, Conflux, Coin98.
It can be seen that DWF Labs has already made the market for two of them, YGG and C98, but it is not known whether the next currency that will skyrocket or plummet will be in its recent investment project.
Perhaps it is because he knows that he intervenes deeply in the trading behavior of the encryption market, and it is easy to have a greater impact on investors' decision-making behavior. DWF Labs specially marked at the bottom of the official website:
DWF OPTIONS LTD is a venture capital and proprietary trading firm engaged in providing liquidity, investing and holding derivatives positions. However, it does not engage in the management or custody of encrypted currency assets or sovereign currencies and derivatives on behalf of third parties or investors or customers.
Furthermore, DWF OPTIONS LTD is not authorized, exempted or regulated by any regulatory authority. It is under regulatory review but does not currently have any license or regulatory authorization. Any counterparty to a transaction with DWF OPTIONS LTD will not benefit from the protections of the various regulated entity schemes.
Therefore, what DWF Labs wants to express is that there are risks in entering the market, investment needs to be cautious, investors are responsible for their own profits and losses, and have nothing to do with us.
epilogue
As an integral part of the capital market, market makers have positive functions, such as adding project liquidity, increasing market depth, dealing with price differences, and activating the market.
However, if you are both an investor and a market maker, and you end up directly manipulating the currency price, you ignore the rules of project development and rely on manipulating the price to harvest both long and short sides. Then, this behavior will undoubtedly damage market confidence.
