Market
Market Making and Beyond: Insights from Vortex Co-Founder
Vortex, a prominent market maker, has become a reliable solution for projects facing growth and liquidity challenges. Founders often struggle with issues like stagnant token performance, weak chart metrics, and the risk of delisting from exchanges. Vortex addresses these problems with effective market-making algorithms, liquidity provision, and tailored advisory services that support project success.
In this interview, Vortex’s Co-Founder Gleb Gora discusses with BeInCrypto how the company’s’s strategic approach is driving sustainable growth for crypto projects in today’s competitive market
Can you share how Vortex started and how it evolved over time?
Vortex was first started as a vision of managing and growing wealth, providing an efficient trading infrastructure for professional and institutional traders in crypto. However, since 2021, we’ve seen a bigger opportunity in another niche, which was still pretty empty back then — market making. That’s when our vision consolidated into this journey and we’ve decided to fully move into the world of market making.
Vortex has adopted several unique market approaches, including various tech innovations and a broad range of strategic offerings for projects. However, what truly sets us apart is our client service. Over the years, we’ve refined our client communication to the highest level compared to our competitors. This focus on communication is a key metric where Vortex excels, contributing to our 93% client retention rate in 2023 and 85% year-to-date — outpacing the industry average by 25-30%.
Understanding your client needs is vital for any business, alongside efficient communication, which is absolutely crucial for profitable market making, especially when it comes to strategies based on project’s KPIs and unique needs. Alongside 24/7 support, that’s one of the key reasons why most of our clients make money while working with Vortex.
How does the world of market making look from the inside?
Since the beginning, we introduced Vortex’s proprietary trading software and dashboard, and we continuously improve them on a dynamic basis. Without spoiling all the juice, here are some of the key metrics and tools we rely on when managing markets.
- Order book integration from CEX with increased order history and added metrics which allow us to analyze the order book within seconds and make informed decisions based on that. Those metrics include order segregation, historical order book data, combined data across all exchanges and instant order execution based on that.
- Batch orders. A basic feature which allows you to instantly place multiple orders or execute them.
- Dynamic orders, a feature which allows to put efficient buy and sell walls.
- Advanced order execution, an automated tool which trades with the best bid and ask order to ensure dynamic trading environment.
- Proprietary trading algorithms designed for both T1 and T2 markets, tailored to meet the specific needs of each project. One of the most in-demand systems is our treasury-building algorithm.
- Additionally, we continuously refine a range of innovative tools, including metrics for stats, balance deltas, built-in PNL tracking, and more. We update and improve these features daily to ensure they deliver optimal market insights.
It’s very important to have a panel which meets all of the essential needs MMs face. An effective dashboard is a major part of success when it comes to executing most market making strategies, especially dynamic ones.
What are the main challenges market makers might face?
Market makers face various daily challenges, making it crucial to have dynamic tools for tracking accurate real-time data and automated algorithms that can trade without constant human intervention.
One of the most common issues is dealing with market takers who sell into the liquidity provided during volatile conditions. Market makers must offer liquidity 24/7, even in turbulent environments. During sell-offs or periods of high volatility, market takers can exploit this liquidity, leading to losses. While effective risk management and dynamic order strategies can mitigate this risk, it remains a key focus area for MMs.
In retainer-based market making, specific risks arise from inadequate client KPIs, especially in illiquid markets. A typical issue is excessive price support requested by projects without sufficient budgets or clear goals, leading to unnecessary spending. While not a direct risk, this challenge highlights the importance of projects listening to expert traders to avoid costly mistakes.
Does Vortex expand beyond market making?
Becoming a full-fledged token partner is one of the key visions behind creating Vortex. Apart from providing market making service, Vortex always goes beyond that and actively supports clients on:
Marketing. Vortex goes beyond standard market making by offering strategic marketing assistance. This includes introducing clients to top Key Opinion Leaders (KOLs) and leading marketing agencies. Vortex also offers guidance on developing and implementing marketing plans. This helps projects gain visibility and reach their target audience effectively.
Smart Contract Audits. Vortex ensures that projects are built on a secure foundation by offering comprehensive smart contract audits. These audits are conducted both in-house and through trusted partners, focusing on identifying potential vulnerabilities and ensuring the robustness of the contract’s code. This helps prevent security breaches and instills confidence in the project’s community and investors.
Strategic Web3 Advisory. Beyond market making, Vortex offers in-depth advisory services tailored to the unique challenges and opportunities within the Web3 space. This includes guiding clients through token launches, ecosystem development, and long-term strategic planning. The goal is to help projects achieve sustainable growth while navigating the rapidly evolving landscape of decentralized technologies.
Tokenomics Development and Audit. Vortex assists projects in designing and refining their tokenomics, ensuring that the economic model aligns with long-term project goals. This service includes auditing existing tokenomics structures to identify inefficiencies or areas for improvement. By offering data-driven insights, Vortex helps projects create token models that support liquidity, incentivize engagement, and foster ecosystem stability.
Providing all of the mentioned services proves highly valuable for many clients, as it ensures that market-making strategies align seamlessly with project plans and development timelines. This holistic approach enhances the effectiveness of market-making efforts by directly supporting the broader goals of each project.
Beyond these services, Vortex actively collaborates with over 20 launchpads and 15 venture capital firms, helping projects secure primary funding. We also plan to introduce our own launchpad by Q2 2025, further expanding the ecosystem.
What are the main trends driving the market right now, and where do you see things heading next?
Since I’ve started my journey in Web3, I’ve seen the space evolve so many times that it actually makes crypto completely different from what it was back in 2017. The NFT bags from 2021 are not going back to their ATH, most L0/1s turned out to be useless even as of today, rugs are more common than during the ICO boom and memes are now a major share of Web3.
I guess we can say that the space has evolved from building and innovating exciting tech to mostly pumping our own bags. We stopped caring about the fundamental part of most coins, predominantly focusing on hype, momentum and greed. Most innovative AI and blockchain projects are going down, while the Solana ecosystem grew. It’s obviously a temporary stage of the market, but it still sets us back from the initial vision behind Bitcoin in the first place.
I do believe that the next stage of crypto will be characterized as a stage of mass institutional adoption of crypto, which will completely evolve the space. DeFi and CeFi will most likely be even less interlinked than today, with DeFi slowly losing its market share over the years due to increased regulations from most nations.
The ETFs will be the key cash inflow to the market, influencing major altcoins and helping other similar projects grow as a whole asset class. Just like in every bull market before, most projects will lose a significant portion of their market cap, while others will capture their market share and many new solutions will appear, with a strong emphasis on RWA, AI and dApps.
What are the key factors that can make or break a project’s success?
Web3 is a very fascinating and somewhat complicated space with a unique blend of important traits a project has to have to become the next big thing. When it comes to success factors though, I would typically tend to divide short term success and long term vision as to different yet somewhat interconnected aspects.
Good momentum is achieved through a combination of effective community management, good brand that vibes with the overall space and/or strong support from respected industry experts. If those three are executed to a top-notch level, projects have enough momentum to generate sufficient buzz to shoot for the “next big thing” type of project. When it comes to long term success, we do have to account for more technical aspects — team execution, funding and economic model and, most importantly, the idea or vision itself.
Partnerships, backers and the overall vibe is crucial in helping the project get the initial traction — with enough experience, you can typically distinguish projects that have a shot from those that don’t in less than one minute just by checking those metrics.
Disclaimer
In compliance with the Trust Project guidelines, this guest expert article presents the author’s perspective and may not necessarily reflect the views of BeInCrypto. BeInCrypto remains committed to transparent reporting and upholding the highest standards of journalism. Readers are advised to verify information independently and consult with a professional before making decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Bitcoin Cash (BCH) Price Up, Leads Daily Gains
Bitcoin Cash (BCH) price has risen more than 10% in the last 24 hours, surpassing the $10 billion market cap and signaling renewed bullish momentum. The recent surge has brought BCH closer to key resistance levels, indicating the potential for further gains if the uptrend strengthens.
However, indicators like the RSI and ADX show that while the trend is improving, it is not yet fully strong. Whether BCH can sustain its upward momentum or face a pullback will depend on how it navigates critical resistance and support levels in the coming days.
BCH Current Uptrend Is Getting Stronger
BCH currently has an ADX of 19.31, up from 12 just a day ago. This increase indicates that the strength of the trend is gradually gaining momentum after being weak.
However, since the ADX is still below 25, it suggests that the uptrend has not yet reached a strong or sustained level of trend strength.
The ADX measures the strength of a trend, with values above 25 indicating a strong trend and below 20 indicating a weak or uncertain trend. While Bitcoin Cash is currently in an uptrend, the ADX at 19.31 suggests that the trend is still in its early stages of strengthening.
If the ADX continues to rise above 25, it could confirm a stronger uptrend, but for now, Bitcoin Cash price movement remains cautious, with room for further development.
Bitcoin Cash Is Not In The Overbought Zone Anymore
Bitcoin Cash has an RSI of 64.5, down from over 70 just a day ago. This decline suggests that while the asset is still experiencing bullish momentum, the intensity of buying pressure has started to decrease.
The drop below 70 takes BCH out of the overbought zone, indicating a more balanced market sentiment.
The RSI measures the speed and magnitude of price changes, with values above 70 indicating overbought conditions and below 30 signaling oversold levels. At 64.5, BCH remains in bullish territory, which supports the ongoing uptrend.
However, the slight decline in RSI could mean the pace of gains is moderating, potentially leading to BCH price consolidation before any further upward movement.
BCH Price Prediction: Will a New Surge Occur Soon?
If BCH maintains its current uptrend and gains additional momentum, it could continue its rise after climbing more than 10% in the last 24 hours.
This strength could push BCH price to test the resistance at $536.9. Breaking this level would signal a continuation of bullish momentum and could attract further buying interest.
On the other hand, if the uptrend fades away and reverses, BCH price could retrace to test the nearest support levels at $424 and $403. If these supports fail to hold, the price could fall further to $364, representing a potential 27% correction.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Custodia Bank to Retrench Staff Again Amid Regulatory Heat
Wyoming-based crypto bank Custodia is reportedly deliberating more layoffs as it braces for ongoing regulatory scrutiny under the Biden administration. The decision comes as the crypto sector faces unprecedented challenges, including de-bankings and increasing pressure from US regulatory agencies.
Meanwhile, cryptocurrency market participants remain hopeful of a better regulatory environment amid expectations of policy shifts with the incoming Donald Trump administration.
Custodia Banks Plans More Layoffs Amid Regulatory Pressure
Custodia Bank might enact more layoffs after retrenching 25% of its staff in August. This comes as the digital asset-focused bank continues to devote resources to its ongoing lawsuit with the Federal Reserve (Fed), which denied the lender a master account last year.
“Fox Business has learned that Wyoming-based crypto bank Custodia Bank will implement further layoffs in order to preserve capital,” Fox Business correspondent Eleanor Terrett reported.
The bank did not immediately respond to BeInCrypto’s request for comment on the supposed layoffs. Early in 2023, Custodia Bank was denied a master account, which would give it access to the Fed’s liquidity facilities. The lawsuit challenges this denial.
Custodia Bank has been trying to conserve capital as it continues its legal battle against the Fed. During its last layoffs three months ago, the company’s founder and CEO Caitlin Long attributed the retrenchments to “right-sizing.” She said it was necessary to maintain operations while preserving capital during the lawsuit against the Fed.
Long also indicated that the efforts could continue “until after Operation Choke Point 2.0 ends,” referring to the alleged ongoing crackdown on digital assets under the Biden administration. Operation Choke Point was the name of an Obama-era effort that “choked off” high-risk industries such as payday lending, gambling, and firearms from banking access.
“I’m incredibly proud of the Custodia team, the services we’re building for our customers and our resilience in the face of repeated de-bankings due to no fault of our own. I especially thank Custodia’s customers and shareholders who have helped us continue the fight for the durability of banking access for the law-abiding US crypto industry,” Terrett added, citing Long.
Noteworthy, oral arguments in the lawsuit will take place on January 21. This will be the day after Donald Trump’s inauguration, following his recent win.
Regulatory Pressures Intensify But There’s Hope for Change Under Trump
Custodia is not alone in struggling against regulatory pressure. The crypto industry at large has recently faced mounting regulatory challenges. High-profile companies like Consensys have also recently announced significant layoffs.
As BeInCrypto reported in late October, the blockchain software firm behind Ethereum infrastructure tools like MetaMask revealed it was cutting 20% of its workforce. Its CEO, Joe Lubin, cited mounting pressure from the US SEC (Securities and Exchange Commission), among other uncertainties in the regulatory space.
“The broader macroeconomic conditions over the past year and ongoing regulatory uncertainty have created broad challenges for our industry, especially for US-based companies,” Lubin shared.
Meanwhile, the Biden administration has been accused of taking an increasingly aggressive stance toward the crypto industry. Among the accusations include enforcing stringent banking restrictions and debankings. Nevertheless, Trump’s recent win and upcoming inauguration reignited hope within the crypto sector for a more supportive regulatory environment.
The hope hinges on the delivery of Trump’s crypto blueprint. Experts believe Trump’s pro-business stance could revive the industry by easing regulatory pressures on crypto.
Brian Armstrong, CEO of Coinbase, has also expressed optimism about a potential shift in regulatory attitudes. Armstrong recently urged the next SEC chair to drop “frivolous cases” against crypto firms and issue a public apology. He slammed the current SEC composition for what he views as overly aggressive enforcement, calling out Gary Gensler.
“The next SEC chair should withdraw all frivolous cases and issue an apology to the American people. It would not undo the damage done to the country, but it would start the process of restoring trust in the SEC as an institution,” Armstrong posted.
Still, Custodia’s ongoing lawsuit is a symbol of the crypto industry’s fight for legitimacy and fair treatment within the financial sector. While the industry’s outlook remains uncertain in the short term, there is cautious optimism that the incoming Trump administration could bring relief to embattled crypto firms.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
As BNB Remains Above $600, Can the Price Climb Higher?
Binance Coin (BNB) has stayed above $600 since November 8 but has struggled to retest $700 or near its all-time high.
This stagnation has left many BNB holders disappointed, raising the question: can BNB reach a new peak?
Binance Coin Experiences Low Volatility, Falling Interest
While BNB trades around $612, the volatility around it appears to be the reason why it has remained above $600 but has yet to make another substantial price increase.
When an asset is described as volatile, it means its price experiences significant fluctuations within a short timeframe. High volatility signals greater risk due to unpredictable price swings, but it also offers the potential for higher rewards.
Therefore, if buying pressure increases during high volatility, the asset’s price might increase significantly. If this volatility comes during high selling pressure, the price might tumble significantly.
According to Santiment, BNB’s one-day volatility has declined from its recent peak, suggesting reduced price fluctuations. This drop in volatility could make it difficult for BNB to achieve a notable breakout above the $600 mark, as the market may lack the momentum needed for a significant move.
In addition, Open Interest (OI), a metric that tracks the level of speculative activity around a cryptocurrency, has declined. High OI usually signals increased capital inflows into contracts, often indicating strong buying pressure capable of driving prices upward.
Conversely, a drop in OI reflects reduced liquidity in the market, often associated with selling pressure and a potential price decline. For BNB, the OI has remained relatively stagnant since November 19, indicating that traders are hesitant to inject additional liquidity or take on new contracts.
Further, the OI is notably lower at $532.08 million than on November 14. This lack of speculative activity indicates reduced market momentum, reinforcing the likelihood that BNB’s price will struggle to break above the $600 threshold.
BNB Price Prediction: Drop to $551 Likely
Similar to Open Interest, BNB’s price has followed a consistent trend since July, repeatedly facing resistance around $612. This indicates persistent efforts by bears to prevent the cryptocurrency from challenging its $724 all-time high.
Currently, with BNB trading near the same resistance level, a decline is possible. Historical patterns suggest that if the coin fails to break through, it could retrace to $551, as it did previously.
Similar to Open Interest, BNB’s price has followed a consistent trend since July, repeatedly facing resistance around $612. This indicates persistent efforts by bears to prevent the cryptocurrency from challenging its $724 all-time high.
However, a surge in volatility paired with strong buying pressure could challenge this outlook. In such a scenario, BNB might not stop at holding above $600 but also climb toward $660—or even retest the $724 high.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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