Infrastructure projects and consumer-facing solutions that make crypto more accessible for mass adoption are key areas during the bear market, said Grachev.Market makers are trading firms that use their own money to make bets on tokens and take the opposite position on trades on exchanges, enabling investors to enter or exit the market quickly. The collapse of centralized exchange FTX – thanks to liquidity issues first revealed in a– likely removed smaller market makers that were too exposed.
U.S. regulators are a continuing threat to the crypto industry and centralized exchanges. In the latest salvo, the U.S. Commodity Futures Trading Commission and its founder Changpeng Zhao, alleging that the company knowingly offered unregistered crypto derivatives products, breaking federal law. “It seems that the crypto market is going to be divided into the U.S. market and then outside the U.S.,” Grachev said. “We are mostly concentrated on Asian markets and not on U.S. exchanges. We do trading on U.S. exchanges but no market making. It’s a huge risk. I’m pretty sure that most of the market makers will follow this way.”