Is every cryptocurrency a pump-and-dump scheme? Many people rightfully ask this question, because one common theme users notice nearly every time a token is listed on a new exchange is a massive rise to unsustainable prices, followed by a cliche collapse, which leaves participants holding the bag., the companies that crypto projects retain to manage the tokens initially used for trading when they're listed on new exchanges.
However, some MMs undercapitalize order books to inflate short-term profits, harming the token community and project. This practice, known as “parasitic” market making, prioritizes MM profits over market health. To assess primary listings and MM approaches, we applied the RCV methodology to 93 listings from April 2024 onward to Bybit, Kucoin, Binance, Coinbase, Kraken and OKX.We found that 69.9% of primary listings were categorized as"Parasitic," while 8.6% were"Transitory," leaving only 21.5% with a"Symbiotic" approach. This meant 78.