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The problem of market making in the crypto sector

The article discusses the role of market making services in the cryptocurrency markets. These services provide liquidity by constantly maintaining buy and sell orders, ensuring stable prices and reduced spreads. Market makers operate independently from exchanges, intercepting orders that have not yet found a match. The article raises concerns about potential conflicts of interest and manipulation by exchanges engaging in market making. Notable market makers in the crypto space include Jump Crypto, Amber Group, Wintermute, Cumberland, and Virtu Financial. Users are encouraged to use limit orders to avoid potential exploitation by market makers and to be cautious when trading on exchanges.

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