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Crypto.Andy (DEV)
Crypto.Andy (DEV)

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🔥 Best Market Making Programs After Binance's MOVE Token Freeze

Why did Binance freeze the account of the market maker, who earned $38 million on the $MOVE token? I’ve been following this situation closely, and in this post, we’ll break down the reasons behind the exchange's actions and explore alternatives for market making. 🔍

‼️ “One day after MOVE was listed, approximately 66 million MOVE tokens were sold by the Market Maker on 2024-12-10 (UTC), with little buy orders,” says Binance, adding “the Market Maker had an eventual net profit of 38 million USDT before it was offboarded on 2025-03-18.”

🤔 What could have led to such actions?

The market maker’s decision was likely driven by the opportunity to earn significant profits through one-sided market making. But in my opinion, Binance’s MM program rebates aren’t very attractive, with a maximum rebate of just 0.005% for the top participant and 0.002% for the next four. 📉 This could reduce incentives for providing balanced liquidity. ❗

After this situation, I became interested in whether there are better conditions for market makers on other exchanges. 🔍 Let's explore alternatives: what do other exchanges offer for market making?

WhiteBIT provides rebates and discounts based on the maker volume over the past 30 days. On the spot market, the lowest fee rate for makers is -0.012%, while for takers, it is 0.020%. On the futures market, a fee rate of -0.010%, and takers face a fee rate of 0.025%.

Bybit offers a competitive Market Maker program also provides rebates for market makers who help improve the liquidity on the platform. Market makers can receive up to -0.025% rebate on the futures market and additional incentives for providing liquidity on the spot market.

🌍 As the industry continues to evolve, it’s essential for exchanges to adapt their incentive programs to ensure that market makers are motivated to create balanced liquidity. 🚀

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