#WLD Market Makers (Market Makers) in the financial markets, especially in the Crypto Assets market, influence coin prices in the following ways:

Provide Liquidity:
Market makers increase market liquidity by placing buy and sell orders on the exchange simultaneously. They maintain a spread between the buying and selling prices so that both buyers and sellers in the market can trade more easily. This means they hold a large inventory of assets and use this inventory to facilitate trading.
Price Discovery:
Market makers help determine market prices by continuously providing quotes. Their quotes reflect their views on the current value of the assets. In the cryptocurrency market, due to the high market volatility, market makers play a crucial role in stabilizing prices and facilitating price discovery.
Absorb large orders:
When large buy or sell orders appear on the market, market makers can absorb these orders to prevent prices from fluctuating dramatically due to large trades. For example, if someone wants to sell a large amount of Bitcoin, market makers can provide enough buy orders to smoothly absorb this sell order, thereby slowing down the speed of price decline.
Price manipulation (may have a negative impact):
While not the intention of market makers, their actions can sometimes be seen as a form of price manipulation, especially in markets or assets with low liquidity. For example, influencing market direction by significantly adjusting quotes during low liquidity periods, or creating false market activity through techniques such as 'wash trading'.
Arbitrage Opportunity:
Market makers seek price differences between different exchanges or markets and profit from buying at low prices and selling at high prices. This gradually eliminates price differences in the market, but their trading behavior affects prices in various markets during the process.
Risk Management:
Market makers manage risk through hedging strategies, and their hedging trades also impact market prices. For example, if they hold a large amount of Crypto Assets, they may use hedging tools (such as futures) to reduce risk, and these hedging activities will affect the prices of the spot market.
Overall, market makers influence coin prices by providing liquidity and participating in price discovery processes, but they must also operate cautiously to avoid being accused of market manipulation. Their activities play a positive role in stabilizing markets and facilitating trades, but in some cases, they may also be seen as having a negative impact on prices.