Synthetix founder: Some market makers profit through low liquidity models and option structures

Odaily Planet Daily News Synthetix and Infinex founder Kain Warwick published an article on the X platform to expose the market manipulation methods of market makers. He said that in the IC0 era, if the project party did not reach an agreement with multiple "market makers", it would be almost impossible to complete financing, and the monthly cost was as high as 50,000 to 300,000 US dollars. Today, these market-making agreements have evolved into option structures. Some market makers manipulate the market through a low float model, shorting at the highest point of TGE, covering at the bottom, and exercising the right to smash the market after pulling the market again. SBF's previous use of a low float model further fueled this arbitrage strategy. Recently, the new gameplay is that the project party sells tokens to the liquidity fund at a discount before TGE, and instructs the market maker to sell directly after the low float pulls the market. DWF Labs once operated Synthetix through a similar method, first buying coins from the treasury to pull the market, and then smashing the market to cash out. There are many ways for project parties to extract value from token buyers. If you see a large amount of tokens being transferred to a “market maker”, be wary, they may just be using you as exit liquidity.”