00后操盘手宇安
--
How does MYX manipulate the market?
Old tricks, but still practical.
Before discussing how to manipulate the market, let's first introduce the marked price and the transaction price. The marked price is the weighted average spot price calculated by multiple exchanges, simply put, it is the average trading price of a coin across different exchanges. The transaction price is the actual price at which trades are executed, which is very easy to understand.
Now let's get started.
The market maker has collected a large amount of spot chips in the spot market and then transferred them to the Bybit exchange, while also buying in the spot segment of that exchange. At the same time, they opened a large number of long contracts on the BN exchange, pushing the price up from both sides.
At this time, the spot market has been largely controlled by the market maker, with insufficient selling pressure. As long as there is USDT, one can short the contracts; therefore, the spot price is higher than the contract price. Meanwhile, a large buy order is placed below the spot transaction price, meaning that if you have spot, you can sell, and I will buy all of it as the market maker, thus controlling the marked price, while the liquidation price of the contracts is based on the marked price.
The market maker controls the marked price, and since their contract positions are leveraged, will there still be liquidation? Naturally, there won't be. Additionally, the exchange adjusts the funding rate to assist in this. I actually don't want to use the term 'assist' because essentially it leads retail investors to give up shorting, which is a protective measure.
Now someone might ask, can the market maker just take off with one foot stepping on the other and push it to 100? Theoretically, yes, but this theory is based on the condition that all the spot has been collected. The secondary market's stockpiling is afraid of new supplies interrupting the market maker's cash flow, leading to an inability to control the market.
Thus, the variable lies in the part of the circulating supply that is unlocked; if 3% are airdrops, it is uncertain how the market maker will respond—whether to net the catch and run or to hard eat and continue the music and dance, no one can say for sure. Attached is the order book image #MYX $MYX
Old tricks, but still practical.
Before discussing how to manipulate the market, let's first introduce the marked price and the transaction price. The marked price is the weighted average spot price calculated by multiple exchanges, simply put, it is the average trading price of a coin across different exchanges. The transaction price is the actual price at which trades are executed, which is very easy to understand.
Now let's get started.
The market maker has collected a large amount of spot chips in the spot market and then transferred them to the Bybit exchange, while also buying in the spot segment of that exchange. At the same time, they opened a large number of long contracts on the BN exchange, pushing the price up from both sides.
At this time, the spot market has been largely controlled by the market maker, with insufficient selling pressure. As long as there is USDT, one can short the contracts; therefore, the spot price is higher than the contract price. Meanwhile, a large buy order is placed below the spot transaction price, meaning that if you have spot, you can sell, and I will buy all of it as the market maker, thus controlling the marked price, while the liquidation price of the contracts is based on the marked price.
The market maker controls the marked price, and since their contract positions are leveraged, will there still be liquidation? Naturally, there won't be. Additionally, the exchange adjusts the funding rate to assist in this. I actually don't want to use the term 'assist' because essentially it leads retail investors to give up shorting, which is a protective measure.
Now someone might ask, can the market maker just take off with one foot stepping on the other and push it to 100? Theoretically, yes, but this theory is based on the condition that all the spot has been collected. The secondary market's stockpiling is afraid of new supplies interrupting the market maker's cash flow, leading to an inability to control the market.
Thus, the variable lies in the part of the circulating supply that is unlocked; if 3% are airdrops, it is uncertain how the market maker will respond—whether to net the catch and run or to hard eat and continue the music and dance, no one can say for sure. Attached is the order book image #MYX $MYX
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
177
0