April 14 (Cointime) - Andrei Grachev, the Managing Partner at DWF Labs, addresses concerns regarding the purchase and deposit of Floki tokens on exchanges. Grachev bought 81 billion Floki tokens and sent 57 billion of them to the on-chain wallet.

Grachev explained that holding tokens across multiple exchanges is necessary since market makers must provide liquidity 24/7. The rest of the inventory is used for collateral in prop trading strategies. Staking and lending markets are additional tools employed to generate yield for their inventory.

Grachev emphasized that crypto market makers must be prepared for emergencies and extreme volatility, maintaining an inventory of coins and stablecoins for liquidity purposes around the clock. He also clarified that it would not be a good sign for the market if a coin's value goes up while an MM is sending large amounts of coins to exchanges from its on-chain wallet.

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The rest sit across exchanges, because as MM we must provide liquidity 24/7. Link to the wallet, feel free to check. https://bscscan.com/address/0x073Ad33ECd69754E0572Fa0D4425525693dB851e#tokentxns

Frankly, the most dumb thing that #MM could do is to leave all the purchased/burrowed assets in the #wallet. Because MM should create markets, provide #depth, improve order execution instead of doing nothing and waiting when the market is skyrocketing to execute its call options
MM itself - As was mentioned before and above, we leverage our #inventory of coins and stablecoins for #liquidity provision. Liquid and deep markets are the key of price discovery, efficient and simple enter and exit for retail, institutional and algo #traders.

#Collateral - When the markets are maintained properly and liquid enough, the rest of inventory is being used as a collateral for prop trading strategies. Many exchanges allow market makers to use coins as a collateral and borrow stablecoins or trade #perps and #options.

#Staking and #lending markets - an additional tool to generate some yield for an inventory is to stake coins or to lend coins to people using exchanges’ solutions.

#Flexibility - crypto MM has to be ready for emergency situations and extreme #volatility and has an available inventory of coins and stablecoins for liquidity purposes 24/7.

I’m not sure that it would be a good sign for the market, when a #coin is up and at the same time MM is sending large amounts of coins to exchanges from its on-chain wallet and confusing people, instead to have everything ready and prepared for smooth actions.

Conclusion - some “experts” and “MMs” are pushing and doing just a part of MM’s job. Spreading unprofessional opinions about aggressive #taker strategies and mixing them with washtrading, and simultaneously leave tons of burrowed / purchased coins on the wallets.

Vision - believe that MM and VC should leverage all the legal and available solutions in order to bring maximum value to its portfolio projects and its profitability. Only strong and profitable MM/VC can do the best job and move forward through all the #crypto market #volatility

Here you can check my clarification about agressive strategies, I never thought that notable MMs and experts don't know basics about MM, name it like #washtrading instead to working properly

Using #floki as an example, we bought 81B #floki tokens and sent them to exchanges. To dispel accusations from some that we dumped them, we just sent 57B floki to the on-chain wallet. - some clarification, because around too many "experts"DWF Labs Managing Partner, Andrei Grachev, Clarifies Use of Floki Tokens and Addresses Accusations of Dumping