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FAQ

  • What is market-making? What is a market-maker?
    Market-making involves providing liquidity in capital markets to ensure sufficient trading volume and fair prices for investors. Teams specializing in liquidity provision are called market-makers. They passively buy and sell, earning through spreads—similar to currency exchange. Market-making is not new to crypto; it is a decades-old practice in traditional finance.
  • Why are market-makers needed?
    Crypto market-makers are indispensable to the digital asset ecosystem. Token projects rely on them for stable liquidity, enabling smooth trading without extreme volatility or execution hurdles. Even memecoins require market-makers to curb wild price swings. New CEXs and DEXs depend on market-makers to bootstrap liquidity, ensuring seamless user experiences. Partnering with experienced market-makers is vital for any project or exchange aiming to thrive in crypto.
  • If I list a project, won’t exchanges handle liquidity?
    No. Exchanges connect buyers and sellers via order matching but cannot resolve illiquidity. Market-makers act as buyers/sellers, injecting orders to enhance market activity. In U.S. equities, 50–60% of volume comes from high-frequency market-makers, ensuring tradability. Most exchanges—traditional or crypto—rely on market-makers. Top crypto exchanges now mandate market-makers as a listing requirement.
  • Can I self-market or use trading bots?
    Top market-makers invest heavily in proprietary software, large teams, and seasoned traders. Most bots are simplistic and cannot compete with professionals. They may work in underdeveloped markets during “good times” but lack the speed and robustness for high-stakes environments.
  • Does every listed token need market-making?
    Yes. All tokens require liquid markets. Top 10–15 tokens attract free market-making, while others need tailored support to avoid liquidity gaps and investor dissatisfaction. Even top tokens often need liquidity assistance on specific exchanges or pairs. Market-makers also attract institutional investors. Tokens with 5% spreads and shallow depth may lure retail traders but repel professionals.
  • How does FrostCrest charge for market-making services?
    Fees vary by project needs. We offer flexible structures: retainers (fixed fees) or performance-based options (incentives tied to liquidity targets). Contact our business team for details.
  • What does FrostCrest guarantee?
    We commit to maintaining specified spreads across all exchanges and pairs for your token. Our algorithms operate 24/7, supported by seasoned traders, even during volatile or unpredictable events.
  • How long from initial talks to formal collaboration?
    Standard process: 3–5 business days. ▸ Needs Assessment (1 day): Define liquidity goals, trading pairs, and parameters. ▸ Technical Integration & Testing (1–3 days): API integration, parameter tuning, and testing. ▸ Deployment (1 day): Launch services in production.
  • Does FrostCrest accept small projects or new tokens?
    Every major project starts small, and every mainstream token begins as new. We welcome collaborations with growing teams.
  • Can market-making strategies be adjusted during collaboration?
    Yes. We support dynamic optimization: ▸ Regular Reviews: Analyze and refine liquidity performance. ▸ Emergency Adjustments: Temporarily modify strategies in response to major market shifts (e.g., project news).
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