Markets
The role of market making in stabilizing cryptocurrency prices and how CLS Global is helping nascent projects
In the world of cryptocurrencies, maintaining stable prices is crucial to attracting investors and keeping the market functional. Market creation is fundamental to this stability. It involves setting purchase and sale prices to ensure that there is always sufficient liquidity for transactions to occur without large price fluctuations. This is especially critical for new crypto projects that need a trusted trading environment to gain traction.
CLS Global, with its deep experience in the crypto market, focuses on strategies that increase liquidity and stabilize prices. In doing so, they play a key role in the success of new cryptocurrencies by providing the stable market conditions necessary for growth and investor confidence.
CLS Global Market Creation and Price Stabilization
CLS Global is a renowned cryptocurrency market making service provider. The brand is committed to delivering short- and long-term success for customers by providing ongoing guidance and support at every stage. With over 7 years of experience, CLS Global is a renowned market maker dedicated to scaling clients’ businesses.
The CLS Global team has incorporated a number of crypto market making services as it seeks to consolidate its position as the ideal market making platform. Some of the services included:
- Liquidity Provision; CLS Global has assembled a team of well-trained professionals to efficiently manage liquidity on centralized exchanges. This is done to dispel existing market volatility, irregular trading volumes and high slippage.
- Price support; CLS Global implements a variety of strategies, some of which include treasury building, positive rebalancing, token liquidation, and arbitrage.
- 24/7 operations; CLS Global offers 24-hour market making services to support markets.
Furthermore, the company’s expertise in order books, algorithmic trading and market making strategies allows it to manage risks, maintain spreads and offer effective and remarkably profitable trades.
CLS Global Comprehensive Market Making Services
Order book management
This is a digital or electronic list of buy/sell orders. Order books are used by market makers to show the current bid and ask prices being offered. They also include limit orders placed by market makers, as well as investors and traders.
Propagation maintenance
This is simply the difference in the buy and sell price relationship set by market makers for an asset or financial instrument. Essentially, spread maintenance is a variable distinction in the price at which an individual is able and willing to buy or sell a specific security. This helps to ensure fair prices and, in the long term, a balanced price.
Algorithmic Trading
This involves implementing sophisticated systems and algorithms to enable rapid reactions to market changes. It also involves the use of cutting-edge tools to provide liquidity to financial markets. Since adapting market making to the cryptocurrency space, numerous companies have been launched to provide related services, CLS Global is one of them.
Case study of the service recently offered by CLS Global
CLS Global recently offered market making services to ApusCoin ($APU) and recorded significant success. Some of the main results are;
- 3x price increase in a specific period
- Maintained a good depth of liquidity within the +/-2% range
- More than $23 million in total daily trading volume
These successes are a testament to the role of market making and how it can create impactful opportunities for stock market listings now and in the future.
Conclusion
Market making stabilizes prices while providing liquidity. Since its adaptation in the crypto space, it has become a primary aspect of the trillion-dollar market. CLS Global realizes its importance and has the mission to provide the best services for existing and emerging projects.