The infrastructure project Market Maker Technology aims to support the liquidity of the main blockchain cryptocurrencies.
The market is an integral part of the life of society. Its evolution began with the exchange of goods and went through a long history from the appearance of cash to complex derivatives.
With each turn of the evolution of the market, more and more new products appeared.
Demand spawned a supply, and often greatly exceeded it. In order to satisfy the need for the goods of all interested buyers, the market has formed professional participants, including the market makers.
The main task of the market maker, at your own risk, is to satisfy the needs of all sellers and buyers of a particular asset. The market maker undertakes to buy and sell a certain amount of assets in a certain period of time before the issuer of the asset or the exchange. This obligation allows you to keep the price from panic falling and a sharp rise.
For example, if a seller has a token and he cannot sell it at the current price, then in a panic he begins to greatly underestimate the cost and thereby unreasonably moves the price of the token down. The market maker in this example is obliged to buy a token at market value and thus keep the price of cryptocurrency at a fundamentally sound level.
At first glance it may seem that the market maker pinches the price in a vise exposing large lots to buy and sell. In fact, the MM is closely monitoring the demand for tokens and moving behind the market, without interfering with its development. The price exhibited by the MM is weighted and fundamental.
The cryptocurrency market is experiencing many simultaneous stresses that prevent it from stabilizing and concentrating on its capitalization. Some stresses are created by young ICO projects, some by speculators with large deposits, but most of the stresses are generated by the inexperience of the holders of the tokens and, as a result, by their fear.
Market Maker Technology has set itself the primary goal in reducing the fears of crypto enthusiasts and shaping a stable future cryptocurrency market.