“A lot of [token] projects are fooling their own trader community or investors by faking these wash trades or these volumes. They give legitimate market makers a bad name. Still, global regulatory developments are progressively making it more difficult for such businesses to thrive." says Mathias Beke, Kairon Labs Co-Founder and CTO.

Crypto market-making involves several ethical considerations that uphold market integrity. With recent crackdowns on dodgy firms, it’s essential for projects to determine what separates legitimate crypto market makers from unethical ones.

We are grateful that Cointelegraph finally sheds light on the reality of market making and all its nuances.

Read the full article here: 

What do crypto market makers actually do? Liquidity or manipulation | 

With recent crackdowns on dodgy firms, it’s especially important for projects to determine what separates legitimate market makers from unethical ones. Cointelegraph and Kairon Labs Co-Founder, Mathias Beke sheds light on the reality of market making and all its nuances.

Get the latest blockchain, web3, and crypto market news, trends, trading insights, and market analysis from trusted trade experts around the globe

Crypto bull runs historically succeed in bitcoin halving, and as we saw the halving happen this April 20, 2024, the excitement for a potentially massive bull run also moved the market. What can we expect from this upcoming bull run? How will it differ from the bull runs of the past?

Last March 2024, we opened this discussion on a 

 featuring special guests who know a thing or two about historical bull runs. Today, we summarize this discussion in a blog, including a few other market updates as of

Cryptocurrency has witnessed numerous bull runs throughout its history, which most traders call part of the "cycle theory," where unique catalysts and market dynamics mark the beginning or end of each cycle. Here is the chronology of these bull runs before and after the 

BTC as a Safeguard Against Geopolitical and Economic Crises

Amidst economic uncertainties buoyed by the 

, 2011 - 2013 saw Bitcoin as a safeguard. The market considered Bitcoin's potential as a hedge against Tradfi instruments, which the market found unreliable amid increased geopolitical tensions. 

On November 28, 2012, Bitcoin experienced its first halving, reducing the mining reward from 50 to 25 BTC per block. This event was met with uncertainty, as the price of Bitcoin hovered at $12.20, and many worried about potential declines in network performance due to reduced profitability. Following the halving, some miners turned off their rigs to cut costs, temporarily lowering the network's hash rate and difficulty.

Bitcoin’s price trajectory shifted significantly in 2013 as exchanges like Mt. Gox, which handled about 70% of all Bitcoin transactions by the end of 2014, facilitated broader user access to crypto. This accessibility drove increased adoption and engagement within the community.

As more people joined, Bitcoin’s price surged, climbing from just $13 at the beginning of 2013 to over $1,000 by November of that year. This rapid price rise marked a turning point for Bitcoin.

This milestone indicated that halvings tend to boost the network’s strength and support long-term price growth, which established a bullish precedent for 

This bull run took a drastic turn after Mt. Gox kicked off a series of troubles within the space: 

 revealing the loss of over 850,000 BTC, 750,000 of which belonged to Mt. Gox customers. Hackers target more exchanges shortly after, and market sentiment towards BTC and crypto plummets.

Following the turbulence of previous years, including Mt. Gox and the 

, Bitcoin experienced a resurgence from 2015 to 2017, driven by mainstream media coverage and growing adoption. The price surged from $200 to $670, marking a watershed moment in Bitcoin's journey to mainstream recognition.

In September 2017, Bitcoin held steady at around $4,000 before climbing to $5,000 and $6,000 by mid-October. By Nov. 2, it surpassed $7,000 and continued its rapid ascent, breaking $8,000, then $10,000, and reaching over $19,000 by mid-December.

BTC breaking its all-time highs served as the main catalyst for the altcoin-driven crypto bull run in 2017. Market participants, no longer limited to tech-savvy, big-time investors, flocked to major coins like BTC and ETH and newly minted altcoins, which became more mass-driven due to meme-adjacent origins.

During the COVID-19 pandemic, cryptocurrencies experienced unprecedented growth, and there was a surging demand for digital payments and DeFi solutions. To battle the ongoing unrest from extended lockdowns, governments started providing subsidies to families, which prompted people to have additional capital to invest in cryptocurrencies. 

By April 2020, Bitcoin rose above $7,000, reaching over $11,000 in July and $12,000 in August. Bitcoin reached nearly $20,000 in November 2020, fueled by Federal Reserve liquidity and optimism surrounding a COVID-19 vaccine. This bull run, while meteoric, was followed by the 

, highlighting the cyclical nature of the crypto market.

Increased digital engagement led to major crypto innovations that moved the market. Periods marked by rapid growth earn lasting monikers like “

 interest surged in 2021, largely due to increased digital engagement driven by the COVID-19 pandemic. The shift to online platforms, particularly Twitter and Clubhouse, facilitated active NFT communities that generated even more hype and adoption.

 turned major profits with their minted digital tokens.

Bitcoin experienced a significant surge in early 2024, crossing the $60,000 mark, fueled by anticipation surrounding the upcoming halving event and the SEC's approval of U.S.-listed Bitcoin ETFs. This milestone marked a convergence of traditional finance and cryptocurrencies, providing institutional investors a regulated avenue to participate in the Bitcoin market. The combination of regulatory approval and halving anticipation created an overall bullish sentiment.

The current cycle shows gradual liquidity improvements and anticipated Fed rate cuts, which boost market optimism, especially as Bitcoin repeatedly reaches new ATHs. Many attribute this momentum to recent political shifts, including Trump’s re-election and 

Elon Musk’s appointment as Head of DOGE

 (Department of Government Efficiency), signaling a pro-crypto stance. 

Trump’s positive remarks on crypto at Bitcoin Nashville 2024 further fuel anticipation for a crypto-friendly economy. Additionally, the influence of crypto integration with AI and meme coins is expected to drive a strong new altcoin season.

In past crypto bull runs, altcoins typically started moving alongside BTC but then surged and often outpaced BTC once it reached a high level with strong momentum. In previous cycles, BTC has usually taken the lead, with its price growth boosting optimism across the entire crypto sector. 

Initially, most altcoins (aside from large-cap coins) tend to lag behind BTC’s performance as the market waits for BTC’s bull run to build investor confidence and attract more liquidity.

At a certain point, however, catalysts arise that fuel broader altcoin movements. These catalysts mainly include:

Significant shifts in monetary policy, such as a Fed rate cut

New narratives or applications within the crypto space. 

For example, in the 2017 bull run, BTC breaking its all-time highs was the main catalyst for the altcoin season. In the 2020-2021 cycle, the Fed’s large liquidity injection due to COVID and the rise of crypto innovations like “DeFi summer” and NFTs acted as the primary catalysts for altcoin momentum.

The market wants to know how this upcoming bull market will play out, with institutional backing and novel sectors like 

 taking the lead. Will the cyclical nature of bull runs still prevail in the next bull run? Or would it pioneer a new wave of bull runs that challenge history?

Bitcoin and cryptocurrencies run with the seasons, but innovation has been ever-present throughout history. Experts believe a crypto bull run is always on the horizon as long as the world innovates and advances. We’re not seeing the last of it anytime soon.

Crypto bull runs historically succeed bitcoin halvings. What can we expect from this upcoming bull run? How will it differ from the bull runs of the past?

Crypto Bullruns Past and Present

, in which market makers facilitate the buying and selling of digital assets by providing continuous buy and sell orders. They ensure good liquidity, a critical aspect in the decentralized and fragmented characteristics of the crypto market. But what are the popular market-making strategies that make liquidity happen? Let’s talk about it.

Evolution of Market-Making Models in Crypto

Digital assets come in unique shapes and challenges that make it necessary for market-making models to evolve. This was originally a painstaking process, with individuals manually adjusting order prices based on market conditions.

The market shifts and matures through time. Tech adapts to meet ever-changing demands. With the increase in trading volumes, automated market-making (AMM) systems and algorithmic trading became prevalent in this sector of finance. This tech advancement allows market makers to execute trades at high speeds and respond to market changes in real time—further accelerated by blockchain developments, smart contracts, and DeFi.

Designated Market-Making Model vs. Principal Market-Making Model

Further down the road, we have two primarily used market-making models in the crypto space: the 

Designated Market Making Model and the Principal Market Making Model

. Let’s take a look at the difference in this educational video:

These market-making models effectively mitigate slippage and enhance market depth. The difference lies in their risk profiles and levels of engagement for token issuers. With unique characteristics, token issuers can compare the two and decide which aligns with their trading objectives. 

Liquidity: The Role of Crypto Market Makers

What do market makers and these models bring to the table? 

Liquidity is king in any financial market, and the crypto space is no exception. Market makers enhance liquidity by narrowing bid-ask spreads—the differences between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask). This spread reduction makes it easier for traders to buy or sell assets at fair prices, ultimately attracting more participants.

Liquidity is especially critical for institutional investors and large traders, as it allows them to move in and out of positions without significantly impacting the market price.

We’ve established how market makers keep the market flow using carefully strategized models. What are the implications of an illiquid project without market makers?

 Without a market maker’s involvement, spreads widen, increasing the expense for investors and affecting market efficiency.

 Illiquid projects become more prone to unpredictable price movements, dissuading potential investors.

 Thin order books and limited liquidity can create challenges in promptly matching orders, leading to difficulties entering or exiting positions.

Good market-making that utilizes the right strategies and 

 go hand-in-hand in contributing to the overall stability of the crypto market.

Here's a helpful infographic that might come in handy:

Discover the mechanics of market making, comparing Designated and Principal Models. Explore their pros, cons, and risk profiles of each + a free infographic.

Understanding Market-Making Models in Crypto

With recent crackdowns on dodgy firms, it’s especially important for projects to determine what separates legitimate market makers from unethical ones. Cointelegraph and Kairon Labs Co-Founder, Mathias Beke shed light on the reality of market making and all its nuances.

Cointelegraph: Kairon Labs Sheds Light on What Real Market Makers Do

Token liquidity is an essential aspect of any blockchain-based ecosystem, and it refers to the ease with which a particular token can be bought or sold on an exchange without affecting its market price significantly. In other words, liquidity refers to the ability to convert a token into cash or another cryptocurrency quickly and easily.

Example: Think of it as if buying a car: As a buyer, you want to be able to purchase a car ASAP while its market value is still pretty low, however, the sellers of that car are taking a long time to respond, because no one seems to be available to sell it even though the car is just sitting there, untouched. Finally, someone approached you that the car could be sold after all, but here’s the catch, the price increased! Because the waiting time is so long, the market value of the car has increased, and now you have to pay more than what you initially wanted to buy it for! #yikes

 To prevent a buyer from being frustrated with the lack of sellers, people hire Market Makers (such as 

) so that someone will always be there to sell the car (or in this case, your token). Other than those, there are also 5 important reasons why it's important to keep your tokens LIQUID, and we have enumerated them for you:

The first reason why token liquidity is important is price stability. When a token has low liquidity, it is prone to sudden price swings caused by large buy or sell orders, which can lead to significant volatility. However, if a token has high liquidity, there are enough buyers and sellers in the market to keep the price stable. This means that investors and traders can rely on a stable price for the token, which can increase their confidence in the market and encourage them to invest.

Tokens with high liquidity also tend to have higher trading volumes. This is because there are more buyers and sellers in the market, which creates a more active and vibrant ecosystem. A higher trading volume can be beneficial for traders and investors because it increases the chances of finding a buyer or seller for a particular token. Additionally, higher trading volumes can help to drive the growth and development of the token ecosystem.

Tokens with high liquidity are more likely to attract institutional investors and large traders. This is because these investors typically require high liquidity to buy or sell large volumes of tokens without significantly impacting the price. Increased capital inflows can be beneficial for the development of the token ecosystem, as they can help fund new projects, improve technology, and attract more users.

High liquidity can also make the market more efficient. When there is high liquidity, buyers and sellers can transact at fair market prices without experiencing significant price slippage or market distortions. This means that the market operates more efficiently, and investors and traders can enter and exit positions with greater ease.

Finally, tokens with high liquidity provide more flexibility to traders and investors. They can easily enter and exit positions as needed, which can be especially important for traders who need to respond quickly to market changes or manage risk in their portfolios. This flexibility can be beneficial for both short-term and long-term investors, as it allows them to adapt to changing market conditions.

The positive outcome in general is that tokens with high liquidity are more likely to attract institutional investors, drive the growth of the ecosystem, and provide better investment opportunities for traders and investors. 

Keep in mind, that creating an environment where people can easily trade promotes a positive market impact. You must keep your tokens available for trade anytime. A successful token launch involves being able to sustain and keep up with the demand trade of your tokens.

Token liquidity is an essential aspect of any blockchain-based ecosystem, and it refers to the ease with which a particular token can be bought or sold...

Token liquidity is an essential aspect of any blockchain-based ecosystem, and it refers to the ease with which a particular token can be bought or sold on an exchange without affecting its market price significantly.

Launching a Token 101: Why is token or crypto Liquidity important?

Launching a Token 101: Why is Liquidity Important?

 have just landed and with such huge successes from Arbitrum’s $ARB to Celestia’s $TIA, it seems the community is gearing up for more buzzy drops in 2024. You don’t want to be the only one left empty-handed.

Today, we’ll take a deep dive into airdrops and retrodrops, discover what makes crypto’s “Free Tokens” marketing tactic irresistible, and get insider tips on how to get the most value out of it.

Crypto airdrops and retrodrops are two of the most common forms of token distribution aimed to incentivize desired actions from the crypto community, such as:

Testing a new token before its launch, and

Think of it as a surprise giveaway where you get digital assets for free or by participating in simple tasks. Blockchain projects use this marketing tactic to create awareness and hype and drive continuous engagement. 

They also foster a sense of community in the crypto space by directly involving token holders in the project's growth, transforming users into advocates.

An airdrop is a strategic marketing move in crypto, where a project distributes free coins or tokens directly to wallet addresses to generate buzz and push circulation in a saturated market. Airdrops typically target active members within the crypto community in exchange for various promotional tasks and loyalty.

A retrodrop is a form of airdrop, involving the retrospective distribution of free tokens to holders. This occurs based on predetermined criteria, such as testing a product before its official launch and long-term token holding. A way for crypto projects to reward early adopters who believed in them from the outset.

We have a free infographic at the end of this blog to compare the two.

Blockchain projects can utilize various types of airdrops based on their marketing goals. Let’s look at three of the main types of airdrops you’ll commonly find: standard, bounty, and holder.

 Standard airdrops are distributed to a broad audience with little to no task required. All it takes is a quick sign-up.

The objective here is to reward the first few users to get into the new token, so you must be quick.

 Participants are incentivized with “free” tokens in exchange for specific tasks, creating a symbiotic relationship between project and individual. These tasks can range from social media engagements to community involvement. 

The key here is active participation, with rewards tailored to the effort invested. The more involved you are, the greater the potential bounty.

 Instead of tasks, users are rewarded based on the amount of tokens they hold. A strategy designed to foster long-term dedication within the community.

The longer you hold onto the tokens, the more rewards you receive. This type of airdrop aims to build a stable and loyal user base through sustained engagement.

Trader Tips on Finding Airdrops and Retrodrops

 Seasoned Kairon Labs trader and cryptodrop expert, 

, breaks down the essentials for participating in legitimate and high-quality drops.

According to him, airdrop seekers should focus on two key sources:

"It's best to follow each CEX announcement closely. And for crypto project drops, there are several good Twitter accounts to follow: AirdropAlertCom, AirdropAlertAAD..."

Patrick also advocates for a more systematic approach. 

"Stay ahead by following new projects on each chain through 

"It's a centralized hub where you can always get firsthand information."

"Currently, the most valuable airdrop is from L1/L2 chains. The 

 layer 2 solution airdrop is one good example."

Crypto airdrops is a high-stakes playing field, and more than anything, Patrick stresses the importance of due diligence. He recommends market research and airdrop rule analysis for popular airdrops, like Layerzero, Starkware, and zkSync, to craft effective airdrop farming strategies for new chains.

Who can resist free money? It's the common thread that drew many of us into cryptocurrency. But while crypto projects promise the best in innovative marketing moves, some are laced with red flags. If you’re not careful, you’ll end up losing more than the free tokens you’ve earned.

If you’re reading this as part of your airdrop research, you’re already on the right track. So what are the tell-tale signs you’ve stumbled upon a scammy airdrop? Let’s get to it:

Excessive requests for personal information

Be wary of airdrops that demand more personal information than necessary. Legitimate projects won't need your life story or your mother’s maiden name to distribute tokens. And if anyone asks for your private keys, run!

Authentic airdrops are backed by clear communication from official accounts. If there’s a scarcity of official announcements or social proof, consider it a red flag. The last thing legitimate projects want is to be labeled as a scammy token, tarnishing their reputation. They want users to be well-informed before launching.

If an airdrop promises astronomical returns or seems too good to be true, it probably is. Cryptocurrency involves risk, and exaggerated promises often signal a scam. So go the opposite route—trust projects that underpromise and overdeliver.

Check the authenticity of social media accounts associated with the airdrop. Scammers often create fake profiles to mimic legitimate projects. Bot replies and engagements are also a red flag. Always look for verification badges and cross-check information across multiple social media platforms.

Airdrop Evolution: What the Future Holds for Cryptodrops

As cryptocurrency evolves, airdrops are also expected to adapt to new trends and developments. They’ve gone beyond just your average marketing tactic as seen from successful drops this year. Despite being as young as blockchain and Web3, airdrops have made individuals wealthier and projects more powerful with 

Looking ahead, the potential applications of airdrops within Web3 are vast and exciting. Airdrops may evolve into powerful tools for community building, decentralized governance, and even the equitable distribution of up-and-coming assets.

It seems airdrops are not just a thing of the present; they are shaping the very fabric of a decentralized future. Are you in?

: This article is for informational purposes only and should not be taken as financial advice. Always conduct your own research and consult with financial experts before making investment decisions.

Take a deep dive into airdrops and retrodrops, crypto's widely used marketing tactic, and get insider tips on how to get the most value out of it. 

Airdrops and Retrodrops Decoded: A Comprehensive Guide

Market volatility is a constant companion in crypto, and it’s enough to keep traders and investors on the edge of their seats. Let’s delve into the heart of the matter—what makes up the rollercoaster nature of blockchain-based markets and how participants achieve stability.

We also shine the spotlight on crypto market makers, the invisible heroes that provide that very stability in the volatile world of digital assets.

Crypto market volatility stems from a myriad of factors, including:

News of regulatory developments, whether proposing new frameworks or imposing restrictions, can send ripples through the market. Traders and investors keenly watch for legislative cues that would shape the legitimacy of cryptocurrencies on a global scale.

 While these upgrades are often promising, they also introduce an element of uncertainty. These can 

 as stakeholders assess the potential benefits or risks associated with these developments.

Of course, global forces are also at play when it comes to crypto market dynamics. Blockchains are not isolated from the broader economic landscape. Inflation rates, interest rates, and geopolitical events, also cast their shadows on the crypto market.

Social media platforms and other digital communities serve as a powerful amplifier for market sentiment. Tweets, Reddit discussions, and online forums can swiftly alter perceptions, triggering a cascade of buy or sell actions.

The "viral" era of information means that even a single influential post (e.g. Elon Musk's tweets on $DOGE) can disproportionately impact market behavior. Remember 

What makes crypto market volatility truly intricate is the interplay of these factors. Regulatory changes might coincide with technological upgrades, amplifying the market's response. These shifts in market conditions can intersect with online narratives, creating a web of influences that challenge even the most seasoned market analysts.

This volatility isn't just a numbers game; it profoundly affects traders, investors, and overall market sentiment. High volatility can lead to significant price fluctuations and risk, making informed decisions difficult for participants.

Market stability guides traders and investors to safer shores. This allows participants to focus on long-term goals rather than getting swept away by short-term market currents.

Crypto market makers are individuals or groups that facilitate trading through continuous buy and sell orders for a blockchain project. Their primary function is to enhance liquidity and narrow bid-ask spreads, making it easier for traders to execute orders, and enter and exit positions without moving the market in either direction.

Legitimate market makers are NOT market manipulators. They don't wash trade. Their goal is to create an efficient market and make sure prices align across all venues where the asset is being traded.

More about crypto market makers vs wash traders on an infographic at the end of this blog.

Liquidity provision is the backbone of a stable market environment. So how exactly do market makers provide liquidity in ever-dynamic cryptocurrency markets? Here are the ways:

Market makers employ sophisticated algorithms and automation in efforts to narrow bid-ask spreads and increase liquidity. These tools enable quick responses to market changes, adjusting buy and sell orders in real-time to prevent large price swings. 

 that illustrates how automation in crypto market-making works.

Statistical arbitrage is a key tool in a market maker’s arsenal. This data-driven strategy involves identifying and narrowing price discrepancies between related assets. By analyzing historical data, correlation patterns, and statistical models, they can execute trades that capitalize on short-term pricing inefficiencies.

This strategy capitalizes on market momentum. Market makers monitor and ride prevailing trends, aligning their positions with the broader market sentiment. By doing so, they not only contribute to liquidity but also act as stabilizing forces during upward or downward trends.

Market makers implement a diversified mix of assets and positions, aiming to neutralize the impact of broader market trends. This approach seeks stability by mitigating directional risk and minimizing the impact of market fluctuations on the overall portfolio.

Despite their vital role in the world of digital currencies, market makers also face challenges, such as market manipulation, bear market liquidity shortages, and the ever-present risk of technological glitches. These challenges add complexity to an already demanding role.

The crypto space is known for its rogue nature and lack of traditional oversight. This makes it prone to bad actors attempting to manipulate values for personal gain. 

Market makers must continuously refine algorithms and monitoring systems to counteract these practices and ensure fair play in the market.

Lack of liquidity and volume in a bear market poses a huge challenge for cryptocurrency exchanges.

Jens Willemen, CEO and co-founder of Kairon Labs, says 

“It’s extra important to provide liquidity for your native asset as the organic traders fade away and the market maker represents a larger share of the order books. It's important to instill trust by providing orderly markets as a token issuer in these low liquidity/volatility times.”

Liquidity crunches are often the result of rapid changes in market sentiment or unforeseen events that can trigger a sudden imbalance between buyers and sellers.

The risk of technological glitches is ever-present in the blockchain era. Even the most minor technical hiccups can have significant consequences. 

Market makers must invest heavily in robust technological infrastructures and comprehensive risk management protocols to minimize the impact.

Ethical market-making involves conducting fair and responsible market-making activities and adhering to ethical standards and principles. The well-being of all market participants is the prime focus. Key aspects of ethical market-making include:

On the topic of ethical market-making, Willemen is firm in his goal for Kairon Labs,

 “We are founder and project-centric and are not looking to purely deploy market-making to generate profits for ourselves. Our business model ensures that we win together with the project.”

The Importance of Transparency in Market-Making

Too many founders don’t understand the complicated deal structures proposed by some of our colleagues. We want to simplify things so all parties truly understand and are aligned in the best way possible. 

Create transparency and trust towards the community so they know we are not working against them.” 

Transparency serves as a powerful tool for building trust among market participants. When market makers openly disclose their methods, traders and investors gain confidence in the fairness of the market.

Operating with transparency not only builds trust among market participants but also enhances overall market integrity. It also…

Facilitates informed decision-making for traders and investors,

In facing these challenges head-on, market makers demonstrate their commitment to maintaining stability and trust in these volatile markets. From employing decentralized finance (DeFi) solutions to advanced risk management tools, market makers like Kairon Labs are your protectors in the crypto space.

Stability is a collaborative effort, in which market makers play a huge role. But it’s also every market participant’s responsibility.

Understanding the dynamics of market-making can empower traders and investors to sail unforgiving crypto waters with confidence and turn market volatility into opportunities for success.

Market volatility is a constant in crypto. How do crypto market makers achieve stability in volatile markets? Let's find out in this blog (+ free infographic).

Stability In Volatility: Why Crypto Market Makers Matter

Get the latest blockchain, web3, and crypto market news, learnings, trends, in-depth trading insights, and in-depth market analysis from trusted trade experts around the globe.