Accused of providing internal market-making services, Animoca clarifies: only maintaining liquidity, no proprietary trading

The Sandbox's parent company, Animoca Brands, was exposed to have been providing internal market-making services for project parties. A spokesperson confirmed the matter but clarified that they did not engage in proprietary trading.

Insider: Animoca Demonstrates Market Making Capabilities to Over 400 Projects

The Block cites insiders who reveal that Animoca Brands has been actively pitching their market making services to over 400 projects under their umbrella.

This move signifies that Animoca, which previously focused solely on Web3 investments, is now competing with mainstream market makers such as DWF, GSR, Wintermute, and Keyrock.

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Animoca: Established in 2022, Not a Proprietary Trading Team

A spokesperson for Animoca stated that the team was established in early 2022 and currently consists of only 10 members.

In addition to market making services, the team also assists in node setup and hedging trades, aiming to mitigate the volatility of Animoca's extensive holdings of competitive tokens.

The spokesperson emphasized that this is not an internal trading team with proprietary trading positions and does not profit from token trading. They stated:

The team's primary role is similar to many corporate finance teams, aiming to optimize the utilization of the company's balance sheet. The team indeed conducts market making to ensure sufficient liquidity for certain tokens, similar to the functions of many market makers. Our choice to execute internally is for scalability and efficiency purposes.