What is MM - Market Maker? Surely everyone has heard the word MM or Market Maker a lot, right?
Market Maker (MM) is simply understood as creators. Including: Exchanges, financial institutions, investment funds, Whales... collectively referred to as MM
🔹 Benefits of MM: They provide liquidity for us. Sometimes when trading on the market, everyone's orders are matched thanks to MM, not just the floor or the buyer or seller. They maintain the liquidity of a coin and of course they also gain profits from the difference and commission fees with the exchange. Sometimes when a new coin is listed, if you want to increase or decrease, MM is a third party between you and the exchange to influence the price.
🔸Disadvantages of MM for us: Pumping, controlling prices, constantly scanning the liquidity of coins, specifically sweeping away our stoploss :))) . Just kidding, it manipulates coins in this market. That is also a disadvantage because it has money and power and can manipulate everything. Not controlled by the state.
🐳 Benefits and risks are there, MM brings liquidity, provides a playground, creates competition, also minimizes risks because of keeping prices, but also knows how to withdraw our money. I often say that MM knows how to make us excited and also knows how to make us despair.
That's what we understand in short, what do you think about MM, good or bad, please comment below and discuss with me.