Altcoin secondary active market making, evolving towards the 4.0 era

Discussing market makers with big players in Dubai. Earlier this year, after the reduction of the 2.0 era selling market makers represented by Web3Port, altcoin market makers entered an era where 2.0 and 3.0 coexist.

In the 3.0 era, market makers are represented by projects like $ZKJ, $MYX, and $MMT. By leveraging large funds and relying on extreme control of supply, they create drastic market movements purely by pulling in large amounts of money and profiting through liquidation contracts.

This has become a classic market-making method for altcoins today. However, large-scale user fund liquidations create negative community impacts and frequently cut into exchanges (insurance funds), making them susceptible to sanctions from exchanges, with the risk of profit withdrawal becoming difficult.

Market makers have already shown preliminary cases of profiting by pushing contract high positions and extreme fees. Users' positions can experience daily wear and tear of up to 48%, and without drastic liquidation, they can also avoid cutting into exchanges (insurance funds).

Under the 4.0 market-making method, with about 100 million in contract positions, theoretically, profits of tens of millions of dollars can be made in just 2 days through funding rates, but whether this method can be sustained and increased remains to be observed.