Fake vs. Legitimate Crypto Market Makers: What Constitutes Legal Market Making?

Starting from the core functions of market makers—providing two-way quotes and supplying liquidity—the author analyzes the fundamental distinction between genuine market-making activities and volume-inflating manipulation disguised as market making in the crypto space. It then compares crypto market makers with traditional ones across three dimensions: entry requirements, contracting parties, and trading environments. Finally, the piece identifies five structural weaknesses plaguing the industry and reveals a substantive shift underway in regulatory thinking.