Shane MolidorFundamentals Don’t F*cking Matter in CryptoAttributing value to digital assets is notoriously difficult — generally, traders estimate the fundamental value of an instrument based on…Jan 20, 2023Jan 20, 2023
Shane MolidorThe Cryptocurrency Exchange as a Marketplace (and Everything Else)In traditional finance, exchanges like Nasdaq, NYSE, and BATS play a pretty straightforward, boring, and vanilla role in facilitating trade…Jan 20, 2023Jan 20, 2023
Shane MolidorWho Trades on Crypto Exchanges?Traders are either informed or uninformed. Informed traders form reliable opinions about whether tokens are fundamentally undervalued or…Jan 17, 2023Jan 17, 2023
Shane MolidorHow does a Crypto Exchange Monetize Trade Activity?Platforms like Binance & Coinbase generate revenue from trade activity by charging makers and takers a fee when they interact with one…Jan 17, 2023Jan 17, 2023
Shane MolidorWhy Do People Trade?People trade to invest, to borrow, to hedge risks, to gamble, to speculate, or to deal. Regardless of their motivation to trade, we can…Jan 17, 2023Jan 17, 2023
Shane MolidorWhat is “Liquidity Begets Liquidity”?Simply put, the phrase “Liquidity Begets Liquidity” means that once a marketplace is proven to have trading activity, more is bound to…Jan 17, 2023Jan 17, 2023
Shane MolidorMarket Making 101: Where does most liquidity come from?A majority of the liquidity on an exchange is provided by market makers. A “market maker” is an institution that will, quite literally…Jan 17, 2023Jan 17, 2023
Shane MolidorPrice Discovery & LiquidityLiquid markets are critically important for cryptocurrencies because they facilitate efficient price discovery as traders assess an asset’s…Jan 17, 2023Jan 17, 2023
Shane MolidorLiquidity & Market ImpactEarlier we stated that buyers and sellers that demand immediacy will consequently move the market when they choose to trade. Assessing how…Jan 17, 2023Jan 17, 2023
Shane MolidorLiquidity Begets Liquidity: Scaling Your Crypto Exchange from Zero to OneAs liquidity conditions improve on the exchange, the execution costs for takers are reduced (i.e., takers can buy & sell large quantities…Jan 16, 2023Jan 16, 2023
