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Market makers cutting prices again and again! DWF Labs responds, urging not to blame them indiscriminately, emphasizing the market downturn forcing them to trade.

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Market makers cutting prices again and again! DWF Labs responds, urging not to blame them indiscriminately, emphasizing the market downturn forcing them to trade.

Andrei Grachev, managing partner of the notorious DWF Labs, recently shared his views on the current state of the cryptocurrency market, pointing out that with volatility at a three-year low, market makers are forced to exit to create liquidity. Upon closer inspection of their holdings, DWF Labs has indeed received numerous altcoins in recent months, causing significant price fluctuations.

Recap: Mysterious institution DWF Labs responds to multi-million dollar investments over the past six months, still facing scrutiny

DWF Labs Highlights the Importance of Market Makers

Andrei Grachev first pointed out in the article the high leverage and 24/7 nature of the crypto market, which attracts speculators; however, the current downturn in the crypto market may lead to more investors exiting.

For these reasons, he mentioned that Market Makers (MMS) and High-Frequency Trading companies (HFTs) play a crucial role in providing market liquidity:

They cannot stop trading, especially in a market where depth is being lost.

Andrei Grachev: Don't Blame Participants for Mistakes

Furthermore, he also mentioned the high risk and allure of the crypto market, emphasizing that it is a pure and fiercely competitive zero-sum game:

Don't blame the game, and don't blame any participants; just do your research, think twice, and then act.

Market Makers Are Usually Competitors

In response to questions in the comments section, Andrei Grachev responded that currently about 80% of market trading volume belongs to market makers and high-frequency trading companies.

He also admitted that the competition among these companies and institutions is intense, usually focusing more on price prediction and order delay optimization.

DWF Labs Actively Engaged, Where's the Next Coin for a Sharp Rise and Fall?

According to Arkham data, DWF Labs' claims are true, as their wallet addresses have interacted with several teams in the past month, taking over tokens including 4.28 million $BSW, 100,000 $PERP, and 1.93 million $WIFI, among others.

Among them, their 5 million $MC is still in holding status, and its price has risen by nearly 30% today. Given DWF's multiple involvements in this market six months ago, more intense volatility can be expected.

Interestingly, tokens that have interacted with DWF addresses have seen significant price surges of over 20% within four hours a few days later, with trading volumes increasing tens of times, only to fall sharply a week later alongside the latter.

Tokens handled by DWF Labs in the past month

Analysis of DWF Labs' market-making methods: $CYBER surged 150% in two days! Upbit holds 33% of the circulation, is market maker DWF manipulating?

More accurately, most tokens handled by DWF did create significant market liquidity within a few weeks, but these trading volumes and prices quickly dissipate with their exit, eventually returning to normal, as usual.

So, who ultimately profits the most - the market makers, development teams, or the retail investors?

Crypto Market Volatility Continues to Decrease Over 3 Years

However, Andrei Grachev was at least not lying; according to Coinglass data, Bitcoin volatility is at a three-year low, showing a slow declining trend.