Seeing a lot of discussions about MM lately, but not everyone really understands what MM actually is. Let me explain clearly.

The so-called Market Maker or MM simply refers to those who provide liquidity to the market. It can be exchanges, large financial institutions, investment funds, or whales. In short, anyone capable of creating liquidity is collectively called an MM.

The advantage of MM is that they provide liquidity for us. When you trade, your order is usually matched not because you find a counterparty buyer or seller, but thanks to that MM. They are always ready to buy and sell to maintain the liquidity of the coin, and they also make money from the spread and trading fees. When a new coin is listed, whether the price goes up or down, MM is the third party that subtly influences the price.

But when talking about what MM is, we also have to mention the disadvantages. MM has money and power, so they have the ability to pump, manipulate prices, and continuously sweep liquidity. The most annoying thing is that they know how to trigger our stop-losses, how to manipulate coins on the market. Because they are not controlled by the government, they operate quite freely.

In fact, MM brings both benefits and risks. They create a playground, foster competition, and reduce risks by stabilizing prices. But the downside is that they also know how to withdraw our money. There’s a saying that MM knows how to make us excited and also how to make us hopeless.

So now you understand what MM is. I'm curious about how everyone perceives MM—good or bad—please comment below and let's discuss.