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Prepared by Mezen in collaboration with Bitmaker
Market making in crypto: pretty charts vs. liquidity
In crypto, “market making” often splits into two camps.
On one side are the “pretty charts”: manufactured lines on a price graph that mimic growth and control. These reports may look impressive but are rarely backed by real liquidity. In practice, it’s often just a few manual trades without proper infrastructure. The effect is short-lived — and teams that chase this shortcut end up disappointed.
On the other side is true liquidity building: creating a trading environment where order books are deep, spreads are narrow, and trades happen with minimal slippage. This kind of market making makes a token convenient to buy and sell, creates trust, and builds the foundation for long-term adoption.
Many projects still pick the illusion because it seems cheaper and faster. The result is nearly always the same: a brief spark, followed by long-term pain. That brings us to the core question every founder must answer: how do you tell a trustworthy market-making partner from a seller of illusions?
When does a project really need a market maker?
Strictly speaking, every project benefits from liquidity. Low volume invites delistings and investor apathy. But timing is critical.
You’re ready to bring in a market maker only after the basics are in place:
- A tested tokenomics model that can handle sell pressure and unlocks
- An active community waiting for TGE
- At least an MVP with early product–market fit
The sweet spot is 3–4 months before TGE, once your strategy is set and there’s time to stage liquidity for launch. Leaving it until the last minute leads to rushed choices and bloated costs.
How bad market makers operate
Low-quality providers trade in myths:
- Price promises — “We’ll make your token go up.”
- Volume obsession — chasing big reported numbers while ignoring liquidity quality.
- Short-term fixes — just enough activity to pass listing checks, then gone.
The pattern is predictable: a flashy debut, then a 2–3-month slide as liquidity dries up and confidence follows.
How to distinguish a trustworthy partner from a seller of illusions
A strong partner thinks strategically: they dig into your project, plan for 12+ months, and integrate liquidity into the broader product roadmap. The goal isn’t to imitate success — it’s to build a sustainable market.
Key qualities of a trustworthy partner include:
- Transparency: clear system architecture, real-time dashboards, and trade-level insights. At Bitmaker, this is fundamental: rather than vague balance-based PnL, they deliver trade-level reporting and live order monitoring — giving clients full visibility into execution and outcomes.
- Measurability: focus on order book depth, spread control within and across venues, and a healthy share of trading volume (around 20% is considered a solid benchmark). PnL is secondary to liquidity and stability.
- Technology: proprietary algorithms, automation, and professional-grade risk management tools.
- Balanced coverage: enough exchanges to ensure flexibility, but without overstretching and losing quality.
- Resilience: liquidity comes before profit — sometimes requiring short-term losses to preserve long-term stability.
- Security and communication: strict API key handling, proactive reporting, and a willingness to highlight issues instead of hiding them.
Judge market makers by the market they build — not by vague price promises.
Tokenomics and market making allocation
Liquidity can’t be bolted on later. It should be designed into tokenomics from day one.
A well-prepared allocation includes:
- Tokens — for quoting on CEXs, DEX pairs, and cross-exchange balancing
- Stablecoins — to manage one-sided pressure and maintain spreads
- OPEX — the market maker’s monthly operating costs
Industry norms suggest 8–15% of tokens for liquidity, but the right figure depends on strategy and listing path.
The time horizon matters just as much:
- Minimum: 6 months to get through the post-listing volatility window
- Optimal: 12–18 months to navigate multiple market cycles and exchange expansions
How to make the right choice
Partnerships only work if the project is ready. Quick checklist:
- Functioning product
- Engaged community
- Clear budget
- Long-term vision
Then choose how you engage:
- Retainer model — monthly fee in stablecoins/fiat with transparent KPIs.
- Loan model — tokens lent to the market maker. Tempting at first, but risky: the partner may be incentivized to dump tokens for short-term gain.
Rule of thumb: favor transparency and alignment over shortcuts.
Final thoughts
Market making isn’t about chasing pretty charts or inflating volume. It’s about building the liquidity foundation that keeps a token investable and tradable over time.
If TGE is on your horizon, don’t leave liquidity to chance.
At Mezen, we help founders plan liquidity early, integrate it into tokenomics, and pick trustworthy partners who build sustainable markets — not illusions.
Book a free intro call with our team today — and give your token the best chance to survive and scale.
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