Manta Network co-founder Victor Ji has made harsh criticisms against market-making companies in the Web3 space. Ji described these firms as “bloodsucking ticks” that disregard the fundamental aspects of projects and only chase short-term profits.
Victor Ji argued that market makers do not care about the core dynamics of projects and are only focused on profit. He stated that this behavior distorts the sector’s capital liquidity from real market transactions and could ultimately accelerate the industry’s collapse.
Ji shared an incident involving Three Arrows Capital (3AC), one of the leading market makers at the time, during his involvement with Polkadot ecosystem project Calamari. He revealed that 3AC demanded over 3% of the project’s tokens under the pretense of market-making but quickly dumped them, causing significant harm to the project.
Victor Ji advised project developers concerned about liquidity to avoid granting large amounts of tokens to market makers. Instead, he recommended considering small-scale credit plans, which he believes would be more beneficial for long-term project success.
Ji’s statements have sparked significant debate within the crypto industry about the role and impact of market makers. Managing relationships with these firms is crucial for the sustainability of projects and the protection of their communities, making it a critical topic for the future of the sector.
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