For those interested or in support of getting MAID listed on more exchanges and hopefully larger, more reputable ones eventually, there is a basic first step we can take. Read on.
One of our problems in this community is we are mostly all die hard MAID HODLers that aren’t interested in trading MAID or don’t have access to an exchange in certain jurisdictions on which to trade. This along with lack of interest from speculators / traders in the wider crypto community has lead us to a bit of a liquidity crisis. But why is this such a big deal and what can we realistically do given our circumstances?
Low liquidity / volume is a key challenge inhibiting attempts to list MAID on additional exchanges. Exchanges are wary about listing older coins that don’t have a history of strong market performance. In addition, low liquidity makes the MAID market easy to manipulate.
One commonly used way to address these challenges is to enlist market-makers. Market-makers ensure there is liquidity in a market by providing liquidity to both buyers and sellers in a given market.Enlisting a market-maker to revitalize the MAID market would be a positive signal for larger, more reputable exchanges, make it easier to get MAID wrapped, and minimize the threat of market manipulation that might/could be suppressing MAID’s market value.
There are many well-known firms that provide market-making services. There are also different ways to structure these deals however, a retainer model is probably best.
Before you cringe at the numbers below, realize this would be less for us as we take baby steps, tackling smaller exchanges first which should open us up to larger exchanges by having liquidity / volume and along the way we should develop an organic market.
The example given is Blockstack, who retained GSR to provide liquidity for Stacks. The terms of that deal were:
- $100K one-time setup fee
- $20K monthly payment for 6 months (total of $120,000)
- $1M loan in BTC and ETH with zero interest to fund trading (Loans are typically made in ETH/BTC & the project’s token. The same amount of coins will be returned to the lender at the end of the loan’s term. The lender profits on the increase in the project token’s value.)
Market-making in support of MAID should not need to cost as much because the target exchanges are relatively lower volume. Some larger MAID holders on the forum have already indicated potential interest in funding a market-maker. However, they would like to know if any other MAID holders would be interested in collaborating to get this done.
Please share your thoughts on enlisting a market-maker to revitalize the MAID market. Some of you may feel we’re close enough to skip this step and that is reasonable. Given there has been interest from some larger MAID holders this could potentially take off pretty quickly if there is enough collaborative support.
If you would like to fund enlisting a market-maker, please feel free to DM me if that would be more comfortable for you.