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Market maker

As we get closer to our exciting listing on a major exchange on 12 September, 2024, you’ve probably been hearing about "market makers." In this article, we want to explain what a market maker is, what they do, and why having one is crucial for the success of our token, FEHU. Everything in layman's terms.

So, What Is a Market Maker?

In simple terms, a market maker ensures that our token FEHU will have a healthy, active market when it’s listed on the exchange. They help with liquidity, price stability, and boosting investor confidence—all things that are crucial for the long-term success of our token.

A market maker is like a special type of trader who helps ensure there are always buyers and sellers for a token on an exchange. Imagine you’re at a farmers' market, and you want to buy a fresh apple. You look around, but no one is selling apples. On the other hand, maybe you’re a seller trying to sell apples, but no one is there to buy them. It would be frustrating, right?

That’s where market makers come in. They are always in the market, ready to buy and sell at any given time. They create a smoother experience for both buyers and sellers by making sure there is always “liquidity” (in simple terms, available apples) for everyone.

What Does a Market Maker Do?

When our token FEHU is listed on the exchange, the market maker's role is to make sure there are enough tokens being bought and sold at all times. Here’s how they do that:

Provide Liquidity: A market maker buys and sells FEHU tokens constantly to make sure there are enough tokens available. This prevents situations where no one can buy or sell the token because of low activity. It helps keep the market alive.

Stabilise Prices: When there aren’t enough buyers or sellers, prices can jump around like crazy (we call this "volatility"). A market maker helps smooth out these price swings by actively trading and balancing supply and demand. This creates a more stable and predictable price range.

Tighten Spreads: You might have noticed when you buy a token, there’s usually a small difference between the price someone is willing to buy (bid price) and the price someone is willing to sell (ask price). This difference is called the “spread.” A market maker narrows this gap, so you get better prices when buying or selling FEHU tokens.

Increase Confidence: When people see that there’s always liquidity and price stability, they feel more comfortable trading FEHU. This builds trust in our project and encourages more people to invest, trade, and hold our token.

Why Every Token Needs a Market Maker

Launching a new token on an exchange is a big deal, but it can also be risky without the right support. Here’s why having a market maker, like MyTrade MM, is so important:

Prevent Low Liquidity Problems: Without a market maker, there could be times when there simply aren’t enough buyers or sellers for FEHU. This could scare off potential investors because they might not be able to trade the token when they want to.

Control Price Volatility: Without a market maker, small trades could cause large price changes. For example, if someone buys a large amount of FEHU at once, the price could spike suddenly. Or if someone sells a lot of FEHU, the price could crash. A market maker helps prevent these wild swings.

Improve Token Visibility: Exchanges prefer tokens that have active, stable markets. A market maker ensures that FEHU looks like a reliable, actively traded token, which helps attract more traders and investors. This, in turn, makes our project more successful.

Boost Investor Confidence: Knowing that we have a market maker backing our token gives investors peace of mind. They’ll feel reassured that FEHU will always have enough liquidity, that prices won’t swing wildly, and that they can trade whenever they need to.

Why We Chose MyTrade MM

We’ve partnered with MyTrade MM, a well-respected market maker, because of their expertise in the crypto market and their commitment to helping projects like ours succeed. They don’t just provide market-making services; they also offer advisory support, helping us make the best decisions for FEHU’s success. With MyTrade MM on our team, we can be confident that our listing will be smooth and well-managed, ensuring FEHU gets the strong start it deserves.

Thanks for your continued support, Viking Fehu Community. We’re excited about what’s to come, and we’re confident that with the help of MyTrade MM, our launch on September 12th will be a major milestone on our journey to success!

Stay tuned for more updates, and let’s keep building something great together!