Market Makers and the Future of the NFT Market

03/01/2023 07:34 • Tech Trends • 87 views

According to reports, Pacman, founder of Blur, said on social media that most of the trading volume in the traditional market and the token market came from a few market makers (MM). In the NFT market, the trading activities from MM and collectors seem very different. Before Blur, there were very few MM in NFT. As the market matures, you will see more MM enter the market.

Founder of Blur: The liquidity provided by market makers makes it safer to buy new collections

Analysis based on this information:

Pacman, the founder of Blur, took to social media to share his insights on the composition of trading volume in the traditional and token markets, leading to an observation that has potential implications for the NFT market. According to Pacman, most of the trading volume in the traditional and token markets comes from a few powerful players known as market makers (MM). These MM serve as intermediaries in the buying and selling of financial assets, and hold significant influence on the market.

However, according to the same social media post, the NFT market seems to operate differently from traditional and token markets, as the trading activities from MM and collectors differ drastically. Pacman observes that before the emergence of Blur, there were few market makers in the NFT market, hinting at a market that lacked the concentration of power and influence that MM bring.

Pacman’s remarks offer an interesting glimpse into the NFT market’s current landscape and potential future trajectory. The NFT market has evolved rapidly in recent years, with artists, musicians, and athletes joining in to launch their own collections of one-of-a-kind digital assets. While the market has shown immense potential, criticisms exist regarding a lack of regulation, transparency, and fair distribution of wealth.

Pacman’s opinion suggests that the NFT market is still in the early stages of development, likely to see the entry of more market makers as it matures. The presence of MM in the NFT market could bring both benefits and drawbacks. While MM can potentially bring efficiency to the market, making trade execution, price discovery, and liquidity more accessible, they can also bring further concentration of power and influence, possible price manipulation, and unequal distribution of wealth.

In summary, Pacman’s remarks offer an intriguing vantage point to understand the role of market makers in the traditional, token, and NFT markets, and the potential implications their presence can bring. As the NFT market continues to evolve and mature, it will be worth monitoring how MM’s entry, concentration of power, and influence shape the opportunities and challenges that the market will encounter.

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Market Makers and the Future of the NFT Market

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