Opinion: There are currently too many new project tokens, and market makers are only dumping and taking orders while hardly placing open orders to control the market trend, resulting in a big dump of alts in the early morning.

BlockBeats news, on October 11, Mango Labs founder Dov (@dovwo) posted on social media that currently most market makers are not “making markets”, but are market takers, that is, they only actively take orders, almost never placing limit orders, using time-weighted average strategies to continuously dump from the opening, selling chips to retail investors who are getting on board. A new coin approximately stops actively providing liquidity about a week later, waiting for the project party to propose a contract termination. Dov explained that the reason for this situation is that there are too many projects in the industry, and liquidity has capital costs. Market makers continuously dump and sell after the opening, allowing them to wait for the next project token to go live because the first week after the opening of each project is the most profitable. Therefore, many altcoins experience a big dump of 70%-80% in the early morning, but only require a trading volume of a few tens of millions of dollars.