Victor Ji, co-founder of Manta Network, recently voiced his frustration with market makers, calling them “blood-sucking termites” who harm the crypto industry. In a post on X (Twitter), he criticized their approach, accusing them of prioritizing profits over project fundamentals.
Manta Network Co-Founder Criticizes Market Makers
Ji revealed that he and his team constantly receive offers from market makers and over-the-counter (OTC) desks to buy and acquire tokens. However, he chooses to stay away, believing that these entities exploit projects rather than support them.
According to him, market makers do not care about a project’s long-term vision. Instead, they focus on short-term gains while presenting themselves as essential industry players.
Market Makers Accused of Draining Funds
Ji argued that market makers extract money from project communities without adding real value. He observed that these firms are always quick to organize events and meetings, often appearing as influential figures in the industry.
However, he questioned their wealth, suggesting it comes from taking advantage of crypto projects rather than genuine contributions.
He warned that if more funds in the industry ignore fundamentals, the crypto market will collapse at an even faster rate. According to Ji, real liquidity should come from organic community trading, where market movements are natural.
He suggested that if market makers want to be involved, they should buy tokens on the open market like any other trader.
Past Experiences With Market Makers
Reflecting on his past experiences, Ji shared an incident from the Polkadot era. During that time, market makers from San Arrows demanded over 3% of tokens from their Calamari project. He claimed that these firms assured them they would not sell the tokens, only to later dump them on the market.
Ji believes that projects worried about liquidity should consider taking loans instead of handing over large amounts of tokens. He explained that a real loan should not require more than 0.2% of a project’s total supply. If a market maker asks for more, he sees it as a clear attempt to manipulate prices and sell off tokens.
Binance Cracks Down on Unethical Trading
In a separate development, Binance has taken action against a market maker involved with MyShell and GoPlus Security. The crypto exchange discovered unethical trading practices after analyzing unusual market trends.
The move underscores growing concerns about the role of market makers in the crypto industry. While they are often seen as providing liquidity, their actions can sometimes lead to market manipulation.
Binance’s decision to intervene suggests that exchanges are becoming more vigilant in maintaining fair trading environments.
A Growing Debate in Crypto
The criticism of Ji and Binance’s crackdown highlights the ongoing debate about the role of market makers in crypto. While some argue that they provide stability, others believe they manipulate markets for personal gain.
As the industry matures, finding a balance between liquidity and fair trading practices will be crucial for long-term success.
Also Read: Neiro Cuts Ties With Gotbit, Seeks New Market Makers