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REPORT ABUSIVE REPLY
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Message Subject
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Crypto bottoms when we have our next "world event" similar to covid pandemic
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Poster Handle
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nemo_solus |
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Post Content
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A interesting read on how Exchanges make tremendous profits when promoting new tokens: The secret behind market-making superpowers is in the liquidity Service Level Agreements (SLAs) that are structured as loans of native tokens, with a cash repayment option. The market maker quotes a tight spread & deep orderbook and in return asks for a loan of the native tokens, but with an ability to repay it with stablecoins. As an example, a market maker would commit to provide liquidity and he would ask for a loan of tokens worth $1,000,000, with the option to repay the loan with USDT, instead of with native tokens. Quoting: Hackernoon [ link to hackernoon.com (secure)] Also well worth reading his other articles: Crypto Shadow Banking Explained: Credit for Market Makers [ link to hackernoon.com (secure)] Falling Liquidity & Unwinding Market-Makers Show That Crypto-Contagion is Far From Over [ link to hackernoon.com (secure)] Crypto Industry Secrets: Shadow Debt Market [ link to hackernoon.com (secure)] Basically, due to these SLA's, there is nobody willing to risk doing business with anyone else, much as happened in 2008 in the Traditional Finance Markets and liquidity is locking up.
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