The Truth Behind Crypto Market Makers | Matt Jobbé-Duval
Summary
Jack Kubinek and Matt Jobbé-Duval delve into crypto market making, explaining the differences from traditional finance due to volatility and token trends. They discuss how market maker deals are structured using call options, which can lead to perverse incentives and price manipulation, particularly through "active market making" and locked token deals. The conversation also covers the critical issue of TGE price discovery, contrasting it with TradFi IPOs, and offers historical insights from Solana's ICO, highlighting the need for better transparency and structured launches in the crypto space.Episode description
Gm! This week we're joined by Matt Jobbé-Duval to discuss the state of crypto markets making. We deep dive into TradFi vs crypto market makers, how are deals structured, how to improve transparency, TGE price discovery & more. Enjoy! -- Follow Matt: https://x.com/Mattjob1 Follow Jack: https://x.com/whosknave Follow Lightspeed: https://twitter.com/Lightspeedpodhq Subscribe to the Lightspeed Newsletter: https://blockworks.co/newsletter/lightspeed Join the Lightspeed Telegram: https://t.me/+QUl_ZOj2nMJlZTEx -- Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/
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(00:00) Introduction
(01:29) Understanding Crypto Market Making
(03:03) TradFi vs Crypto Market Structure
(13:30) How Market Maker Deals Are Structured?
(19:32) What Is Active Market Making?
(29:56) Does Active Market Making Work?
(44:34) TGE Price Discovery
(52:11) Market Making Transparency
(58:28) Takeaways From Solana’s ICO
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Disclaimers: Lightspeed was kickstarted by a grant from the Solana Foundation. Nothing said on Lightspeed is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Mert, Jack, and our guests may hold positions in the companies, funds, or projects discussed.