news 
Disturbing Truth About Crypto Market Makers Exposed by Synthetix Founder
In a recent interview, Chris Warwick, the founder of Synthetix, shed light on the questionable practices employed by some crypto market makers (MMs). Specifically, he emphasized the role of these entities in manipulating token prices and creating artificial liquidity. According to Warwick, SBF (Sam Bankman-Fried) popularized market making, which has led to an increase in market manipulation.
Warwick’s statements focused on how certain MMs exploit discounted tokens to create “exit liquidity.” With fewer tokens circulating, it becomes easier for these entities to engineer price surges by buying and selling tokens quickly. Large block holders can then take advantage of this situation by shorting the token at its peak value and then covering their position when prices plummet.
Additionally, Warwick highlighted his past dealings with DWF Labs, stating that Synthetix was the first project to be taken advantage of by the company. He believes that such deals may initially benefit a project’s treasury but ultimately harm both the token and the community in the long run.
In conclusion, Warwick urged market participants to carefully scrutinize token transfers and be cautious of sudden liquidity spikes and behind-the-scenes transactions. He stressed the importance of transparency and heightened skepticism when encountering such situations.
Warwick’s statements highlight ongoing concerns regarding questionable practices by some MMs and emphasize the need for projects and investors alike to remain vigilant in this ever-evolving market landscape.
Total crypto market cap at $2,830 billion
Source: https://bitcoinist.com/disturbing-truth-about-crypto-market-makers/
