Crypto Market Making
Key features of market making:
24*7 Liquidity: Our automated market making strategies equip an exchange or token to provide liquidity to clients at all times even during the most volatile market conditions
Low latency: Our cutting edge high performance systems ensure clients are offered fair market price at par with several global execution venues
Narrower spreads: The difference between the highest bid and lowest ask is termed as the ‘spread’. Our systems enable us to quote at a constant and predictable spread eliminating market inefficiencies and providing enhanced liquidity to the token or exchange
Low Market impact: The execution cost for large size market orders is reduced significantly as the depth of the order book ensures minimal slippage
Potential to trade increased volumes: As market makers offer competitive bid-ask spreads and maintain the order books consistently, traders and institutional investors are incentivised to trade higher volumes given low transaction costs
Customised Services: Each token or exchange may require customised liquidity management and 39k ensures that these liquidity needs are met taking into consideration token, exchange and investor requirements. Our market making strategies use modular, programmable algorithms and can be configured to adjust to newer strategies on a real time basis.
How do crypto market makers operate?
In liquid trading pairs, market makers earn the bid ask spread and accumulate profits by trading large volumes
In less liquid pairs, market makers usually negotiate incentives with token/exchange teams to provide dedicated liquidity.
The market makers have exposure to inventory risk as they have to be in possession of assets (tokens) that they are providing liquidity to. Losses may accrue to market makers if they are purchasing at a higher price in comparison with the selling price.
Most professional market making strategies are automated with minimal manual intervention. At 39k, we have high automation but also have a manual trade monitoring layer which ensures high uptimes and superior risk management, thus fulfilling our client requirements more robustly.
Market Making for Token Projects
Liquidity in the cryptocurrency market is a key factor contributing to widespread adoption of a token. Market making for tokens enables sale, purchase and trade of digital assets with minimal slippage. Market making ensures that there are always buy and sell orders on the order book and buyers and sellers of a token are able to execute orders at fair prices.
We are connected to all major centralised exchanges and decentralised exchanges. Integration with all major exchanges globally and a number of regional exchanges allows us to provide 24*7 liquidity to a token regardless of the exchange they are listed on. The technical abilities of our team enables us to connect to any exchange within a 48 hour window. As a token project our clients are assured of having access to our market making services in any geography of their choice.
With 39K Group, you can ensure 24x7 guaranteed liquidity for your token on cryptocurrency exchanges globally
Market Making For Exchanges
We assist exchanges in increasing liquidity of crypto pairs traded by maintaining deep order books and uptime of more than 95%. By reducing market impact and execution costs for significant crypto pairs on an exchange, we equip exchanges to be more attractive to retail and institutional investors.
Taking a long term perspective, we establish strategic partnerships with exchanges to provide liquidity with the ultimate goal of increasing natural liquidity on the exchange.