By accepting a market maker who offers liquidity on pre-agreed conditions, ICO companies can possibly anticipate the following advantages:
Market making consists in offering liquidity on a clear cryptocurrency by surrendering both bid and enquire limit orders on a crypto exchange. By gathering the bid-ask spread over multiple trades Market makers make profit. A quick and steady technology and appropriate risk management are necessary to make markets fruitfully.
TokyoTechie is extremely dedicated in market making for utility tokens and cryptocurrencies.
We aim on building long term, sustainable relationships with our clients, whereas most crypto market makers are too costly to be worth it.
An increase in the volatility of the asset will be there as markets that have low down liquidity will normally have extensive bid-ask spreads in their order books. Consequently it makes it more challenging for traders to get a superior price for their trade, and have their orders filled. The development gets influenced hugely because of the overall liquidity of a market and market makers play a huge role in making sure liquidity. Merely stated, the liquidity of an asset is its availability for buyers and sellers to easily trade it at any given time.