Unchained At What Price Freedom? Stopping ‘All-Out Crime’ in Crypto Market Making - Ep. 809
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Apr 1, 2025 Kain Warwick, founder of Infinex App and Synthetix, dives into the murky waters of crypto market making. He unpacks how some market makers have strayed into unethical practices, highlighting a recent incident involving Binance. Kain details the intricacies of token evaluations and the centralization crisis exemplified by the $JELLY attack on Hyperliquid. He also addresses the strategic dilemmas in balancing security and user experience in DeFi, shedding light on the innovative solutions Infinex is developing to navigate these challenges.
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Evaluating Token Launches
- When evaluating new tokens, focus on Fully Diluted Valuation (FDV) rather than just market cap.
- Consider if the FDV is sustainable given the circulating supply and potential unlocks.
Binance and MOVE Manipulation
- A market maker netted $38 million on Binance by manipulating the MOVE token.
- Binance subsequently kicked them off the platform, demonstrating their increasing intolerance for such practices.
Citadel in Crypto
- Kain Warwick believes Citadel entering crypto market making is positive.
- He doubts they'll engage in exploitative practices common with newer tokens, unlike Jump and GSR.