I’m Jen Albert, Head of Marketing and Brand at Bancor, and host of Blockchain Banter — a weekly livestream where I sit down with top minds in DeFi and blockchain to share knowledge, challenge ideas, and unpack the most complex (and misunderstood) mechanics of the crypto world.
In this episode, I spoke with two industry professionals who spend every day deeply immersed in crypto liquidity:
Matko Hrvatin, Business Development at Margin, a professional crypto market-making firm
Mark Richardson, Project Lead at Bancor and Carbon DeFi, builder of onchain infrastructure for making markets
Together, we peeled back the layers on one of the most misunderstood — and often criticized — roles in crypto: the market maker.
What Is a Market Maker in Crypto?
It’s easy to assume market makers are just another kind of trader. They’re not.
Market makers:
Manage two-sided liquidity so tokens can be bought or sold at any time
Reduce the cost to traders
Absorb volatility — especially when retail can’t
What Is a Market Maker in Crypto? The Dance Floor Analogy Explained
But in crypto, they often operate behind the scenes, making their contributions invisible — and misunderstood.
Why the Bad Reputation?
Let’s be honest —market makers don’t necessarily have the best reputation in crypto.
“We rallied around supervisionless systems — and then complain about the consequences.” — Mark Richardson, Bancor
From market-manipulation-as-a-service to murky relationships between centralized exchanges and in-house trading desks, the industry has seen more than its share of ethical gray zones.
“We remain concerned about the ease with which the market for a crypto asset can be manipulated…” — Jorge G. Tenreiro, Acting Chief of the Division of Enforcement’s Crypto Asset and Cyber Unit (CACU).
Crypto Market Manipulation & the Ethics of Market Making
Fuel to the Fire
As I’m writing this, fresh headlines are putting even more pressure on market makers.
Just yesterday, Coinbase announced it is suspending the trading of MOVE, a token at the center of a growing market-making scandal.
https://x.com/TheBlock__/status/1917984853082976569
Following MOVE’s launch last December, a market maker reportedly dumped 66 million tokens, walking away with $38 million in USDT. Binance froze the funds in March, flagged the issue, and alerted the project team.
The fallout? Delistings, damage control, and now — a leadership shakeup.
Movement Labs has since suspended its co-founder, Rushi Manche, after leaked agreements revealed that the market maker was granted control of roughly 5% of MOVE’s supply — with terms that incentivized aggressive price appreciation. The arrangement raised serious concerns and prompted a full investigation.
https://x.com/movementlabsxyz/status/1918134801028268187
The Pressure They Face
“It’s a thankless job. When you do it right, no one notices. When you slip, you make headlines.”
And that’s the reality for most market makers operating in crypto today. The pressure isn’t just reputational — it’s operational, financial, and constant. While the risks are high, the expectations are even higher: deliver liquidity, protect the peg, absorb volatility, and stay invisible while doing it.
Market Makers: The Risk No One Talks About
CEX Listings Start Onchain
Even under immense pressure, market makers are expected to deliver — for both traders and for token teams.
And for any project eyeing a centralized exchange listing, here’s what many still don’t realize:
Your performance on a DEX is your audition for a CEX.
“If your token isn’t trading well onchain, it won’t get listed on a CEX.”
Exchanges and market makers closely monitor onchain activity. They’re looking for:
Consistent volume
Natural liquidity movement (not just bootstrapped)
Narrow spreads and stable pricing
Strong onchain markets build confidence. Weak ones send signals that your token isn’t ready.
*If you’re preparing for a listing and need programmable liquidity strategies that scale with you, reach out to Mark Richardson to explore how Carbon DeFi can help.
Want a CEX Listing? Start With DEX Liquidity First
Choosing the Right Liquidity Infrastructure
Not all liquidity infrastructure is created equal — and as markets mature, so should the strategies supporting them.
AMMs (Automated Market Makers)
Early-stage tokens may turn to AMMs (Automated Market Makers) for simplicity and accessibility. These passive systems help bootstrap liquidity but offer limited control, often exposing projects to slippage, price impact, and shallow order depth.
Order Books
Order books offer precision and flexibility — but come with higher complexity and cost, making them more suitable for tokens with active trading volume and market maker engagement.
Now, new infrastructure is emerging to bridge that gap.
Carbon DeFi
Carbon DeFi combines the automation of AMMs with the precision of order books. Its programmable strategies, concentrated liquidity, and solver-based execution offer token projects and market makers the flexibility they need — without the limitations of older systems.
Choosing the Right DeFi Infrastructure: AMMs, Order Books, or Carbon DeFi?
AI in Market Making: The Benefits and the Risks
AI tools are already being integrated into crypto trading and liquidity provisioning — from execution logic to market sentiment models. But without controls, they present real risks.
Matko warned:
“AI will help optimize decisions. But autonomous agents? That’s where it gets dangerous.”
Will AI Replace Market Makers? Here’s Why That’s Risky
But AI in trading isn’t new.
Mark pointed to a chilling, trillion dollar example:
“The 2010 Flash Crash? That was AI. And today’s models are far less transparent.”
He explained how high-frequency AI-driven strategies have long operated in traditional markets, but modern black-box models offer even less visibility into how decisions are made and how to get to the bottom of it when something goes wrong.
How AI Crashed the Market in 2010 — And Why It Could Happen Again
What Token Projects Need to Know About Market Making
Token teams often misunderstand what a market maker actually does:
“They think it’s about chasing alpha. It’s not.”
Real market makers focus on:
Capturing 1–2 basis points per trade
Supporting continuous two-sided liquidity
Stabilizing token price across venues
Why Most Token Projects Misunderstand Market Making
If you’re…
Shopping for a Market Maker
Reliable execution beats flashy promises. It’s about sustainability, not speculation.
“Go with the Honda Civic, not the Ferrari.”
Preparing for a Market Maker or CEX Listing
As projects move beyond bootstrapping and begin targeting more mature markets, infrastructure choices become critical.
Carbon DeFi — purpose-built for efficient onchain market making — offers a compelling middle ground.
Practical Advice for Token Projects: Don’t Pick the Ferrari. Pick the Honda Civic.
Watch the full recording
Market Makers: The Most Misunderstood Role in Crypto
Blockchain Banter
Blockchain Banter is a live, unscripted discussion series where industry experts, builders, and thought leaders come together to share knowledge, challenge ideas, and explore the evolving landscape of DeFi and blockchain.
🎙️ Follow me on X at x.com/Here2DeFi and tune in weekly:
Tuesday Trading at 4PM UTC
Wednesday Debates at 3PM UTC
Interested in joining a future episode? Reach out on X or LinkedIn– I love connecting with builders, thought-leaders, and especially skeptics.
Presented by Bancor
Bancor has always been at the forefront of DeFi innovation, beginning in 2016 with the invention of the Constant Product AMM and “pool tokens.” They then went on to invent Concentrated Liquidity in 2020. Their latest innovations — Carbon DeFi and the Arb Fast Lane — further Bancor’s mission to advance infrastructure, grow liquidity, and power onchain trading at scale.
For more information, visit www.bancor.network.
