Market Makers Often Act as Takers, Says Mango Labs Founder

According to PANews, Dov, the founder of Mango Labs, has stated that many so-called 'market makers' actually function as market takers, typically not placing maker orders and instead using Time-Weighted Average Price (TWAP) strategies to sell gradually. He noted that market makers often withdraw liquidity about a week after a new coin is listed, due to the high cost of capital and the large number of projects. They are most active during the first week of trading. Dov highlighted that Jump Trading engages in approximately 30 projects annually, providing liquidity in a more systematic manner, which results in more stable project performance. He also mentioned that many altcoins can experience a decline of 70% to 80% with trading volumes of only tens of millions of dollars.