Market Maker DWF Labs’ More Than $200M in Deals Blur What ‘Investing’ Means

  • 📰 CoinDesk
  • ⏱ Reading Time:
  • 52 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 63%

United States News News

United States United States Latest News,United States United States Headlines

.DwfLabs made headlines with flurry of deals in projects such as CryptoGPT__org or synthetix_io. A closer look reveals that many of their deals aren’t typical VC investments, but the firm says it’s all just a misunderstanding. Reports sndr_krisztian

But a closer examination reveals DWF, whose founders made their money as crypto high-frequency traders, isn't exactly a venture capital firm – not always, at least.

DWF Labs’ investments are more ad hoc in nature and the company primarily selects for projects that have already launched a token. It is quite common in the crypto industry for market making firms to have venture capital arms. Jump Crypto and Wintermute, two heavyweights in the crypto market-making sector, both began as trading firms. But both have since expanded into cutting venture checks for projects, and even building their own pieces of core infrastructure .

“All of their ‘investments’ are poorly disguised agency OTC trades,” a market making firm’s executive told CoinDesk, who asked not to be named due to company policy. “They make a big announcement about ‘partnerships, investments’ or some other nonsense, but in reality it is a way for token projects to sell their treasury without announcing that they are selling their treasury.

“As a market maker, of course we support our portfolio. If we invest, we will provide much more liquidity to the project compared to if we don’t invest,” Grachev said.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

DwfLabs CryptoGPT__org synthetix_io sndr_krisztian You tagged wrong Crypto gpt twitter handle

DwfLabs CryptoGPT__org synthetix_io sndr_krisztian Invest in a non shady option like $GOLD. This project has witnessed massive growth and keeps growing. We are just at the beginning. Stack some golds.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 291. in US

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

BTC, ETH Tap Near-Yearly Highs as Market Cap Eyes $1.3T (Market Watch)ETH, DOGE, and ADA are the top performers from the larger-cap alts.
Source: Crypto_Potato - 🏆 568. / 51 Read more »