[Service updates: Marketing-Making from Kronos Research]
Hey guys, we want to inform you that the market-marking service has almost come to its first-year completion.
The last day of market-making will be on March 15th. And with the agreement, we will return the 6.8m FX token loan by March 25th.
Together, we had a bumpy rollercoaster market ride in 2022. We appreciate the FX team and community for the trust in the last year, rain or shine, stood by us. With this in support, we managed to deliver our best performance in effort during those volatile times.
We hope this will not be the end of our journey. A new market-making proposal is being structured currently and I will share it once is ready for review.
Since earlier Kronos accounted for the lion’s share of trading. I understand that the cooperation with Kronos was not renewed. And now the situation with the lack of liquidity is alarming. kucoin, Huobi exchange, new MEXC. Often the daily volume does not exceed $1000. Is there a plan to solve this problem?
Personal opinion, I believe the Function X team should focus on blockchain-related tech, as market-making is not their true area of expertise. Especially during a bear market where volumes are low across the whole board. It’s quite common to have low volatility and volume during bears, especially alts.
It’s more important than ever to allocate limited resources wisely, such as dishing out products.
But nevertheless, the team is still focused on building the tech, regardless of market conditions. I believe focusing on the right path will be more beneficial for everyone in the future as there will be more products when the bull decides to return.
Although, of course, arms are always open to any market makers.
This is the position! And we believe that this strategy will lead to good results.
But I just want to understand if there is any danger of fx being excluded from exchanges like kucoin due to lack of trading activity.
There was a collaboration with Kronos. I would also like to know the details of how this story ended.
Kronos Research team have been helpful in executing market-making between March 2022 to March 2023. On behalf of the foundation and community, thank you @ANgelaH@benyorke.eth@Neal_Wen !
The 6.8m $FX was returned on Mar-24-2023 to the foundation. Since receiving the returned funds, we have deployed 2.16m till date to CEXes internal market-making team to market-make $FX directly, we should see volume uptick, pending the broad market condition.
At a suitable time, we might re-engage a third party market maker, including possibly Kronos Research.
Thanks again for this detailed answer. Blockchain can prove that the funds were indeed returned and are currently used for CEXes market-making.
As for the future, I think it is important to keep track of these funds, as this was just a lend.
Maybe should we consider that these 6.8M are allocated to the foundation for long-term market-making purposes (whether thru Kronos or internal team), but we should be able to track this amount…
And since volume is currently very limited, could you consider stating that the market-making strategy will not be manipulating the token price, and only satisfy queries to buy and sell at different level of prices ?
A bonus question : do you consider an internal team has more to gain from ensuring market-making initiative compared to an external one ?
