• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: Ripple CTO Steps Down, Accepts New Offer – What You Need To Know
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: Ripple CTO Steps Down, Accepts New Offer – What You Need To Know
crypto market makers manipulation

Disturbing Truth About Crypto Market Makers Exposed By Synthetix Founder

Jake Simmons
by Jake Simmons
6 months ago
·
Posted in Crypto News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

In a thread on X this morning, Synthetix founder Kain Warwick offered a stark look into the inner workings of crypto market makers (MMs) and their evolution over the years. Warwick recounted his personal experiences, both favorable and unfavorable, with various MMs in the space and highlighted how some have resorted to dubious practices—particularly during and after the ICO boom.

Crypto Market Makers Exploiting Projects And Traders

Warwick began by recalling the initial market conditions during the 2017 Initial Coin Offering (ICO) era, stating that it was then “practically impossible to raise without having a deal in place with several ‘market makers.’” The monthly cost for such arrangements, he noted, could reach as high as “$50k–$300k+.” Despite high costs, these deals were considered essential for attracting large investors and securing listings on prominent exchanges.

Related Reading: ZachXBT Accuses Crypto.com Of ‘Borderline Fraud’ After Trump Deal

However, Warwick emphasized that some MMs quickly pivoted to questionable activities, which often resulted in being barred from top-tier exchanges. “Even by late 2017 Binance was kicking them off the exchange regularly for various shenanigans,” he wrote. He described how these MMs manipulated volumes on less reputable (or “tier 3”) exchanges through crossing orders with themselves—a strategy he claims they could not replicate on platforms like Binance or Kraken.

One of the major evolutions in market-making arrangements, according to Warwick, was the adoption of call option structures. He pinpointed that “many ‘market makers’ just yolo pumped tokens, exercised the calls and dumped everything,” contrasting them with “good market makers” who “aim for tight spreads” and remain “delta neutral.” Euro calls, he explained, are less prone to manipulation than American calls because of their exercise restrictions. In Warwick’s words, “American calls were mostly for extraction.”

Related Reading: Crypto Payments Face Global Hesitation as Hack Threats Loom, Survey Finds

He further traced the rise of “low float meta,” attributing its popularization to Sam Bankman-Fried (SBF) and describing how some MMs and funds exploit discounted tokens for “exit liquidity.” With fewer tokens circulating, price surges become easier to engineer, and those holding large blocks can “short the top on TGE, cover at the bottom and then pump it into low liquidity later.”

Warwick also referenced his prior dealings with DWF Labs, revealing that Synthetix “was the first project to be grifted by DWF Labs.” He contended that while such deals may help a project’s treasury in the short term, they often harm the token and community over the long run.

In his closing remarks, Warwick urged market participants to scrutinize token transfers carefully. “Be very wary if you see a huge block of tokens sent to a ‘market maker,’ they are likely just prepping you as exit liquidity,” he warned, calling for greater “transparency” and heightened skepticism when confronted with sudden liquidity spikes and behind-the-scenes deals.

Although Warwick acknowledged that the environment today differs from the ICO heyday, his statements highlight ongoing concerns over questionable market maker practices—reminding both projects and investors to remain vigilant.

At press time, the total crypto market cap was at $2.83 trillion.

Total crypto market cap
Total crypto market cap, 1-week chart | Source: TOTAL on TradingView.com
Featured image created with DALL.E, chart from TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Jake Simmons

Jake Simmons

Follow

Jake Simmons has been a Bitcoin enthusiast since 2016. Ever since he heard about Bitcoin, he has been studying the topic every day and trying to share his knowledge with others. His goal is to contribute to Bitcoin's financial revolution, which will replace the fiat money system. Besides BTC and crypto, Jake studied Business Informatics at a university. After graduation in 2017, he has been working in the blockchain and crypto sector. You can follow Jake on Twitter at @realJakeSimmons.

Full Profile

Related Posts

DeepSeek Predicts SOL to Break $450 – $750 by Year-End, Snorter Token Stands to Benefit

DeepSeek Predicts SOL to Break $450 – $750 by Year-End, Snorter Token Stands to Benefit

8 hours ago
Switzerland’s Crossroads: Industry Leading Associations Sound Alarm on Losing Web3 Leadership

Switzerland’s Crossroads: Industry Leading Associations Sound Alarm on Losing Web3 Leadership

4 hours ago
From Slow to Hyper: Bitcoin Hyper Tipped as Uptober’s Next 1000x Crypto

From Slow to Hyper: Bitcoin Hyper Tipped as Uptober’s Next 1000x Crypto

10 hours ago
Gary Gensler

Gary Gensler’s Vanishing Messages Trigger Republican Inquiry

11 hours ago
Michael Saylor’s $1T Bitcoin Goal Propels L2 Scaling Solution Bitcoin Hyper

Michael Saylor’s $1T Bitcoin Goal Propels L2 Scaling Solution Bitcoin Hyper

11 hours ago
Next Crypto to Explode Live News Today: Timely Insights for Chart Sniffers (October 1)

Next Crypto to Explode Live News Today: Timely Insights for Chart Sniffers (October 1)

5 hours ago

Premium Sponsors

Press Releases

  • най-добрите криптовалути

    Най-добрите криптовалути за...

    13 hours ago
  • As the Tapzi Fundraiser Continues to Generate Buzz, Could It Be One of This Year’s Best Crypto Presales?

    As the Tapzi Fundraiser Continues to Generate Buzz, Could...

    16 hours ago
  • 距離上線僅剩3周:Snorter代幣ICO融資突破 415...

    2 days ago
  • 上線倒計時:僅剩25天可搶購 Snorter Bot 代幣

    6 days ago
  • 加密錢包掀起發幣熱潮 Best Wallet...

    1 week ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.