Update: Chia Network Provides Second Loan to Market Maker

As announced by Chia Network Inc. on Discord, another 50,000 XCH from the Strategic Reserve has been sent to the market maker, increasing their total loan + transfer amount to 250,000 XCH.

Discord announcement providing information on a second loan to a market maker.

Prior to this, the market maker appears to have deployed 117,500 XCH across a few exchanges.

It is unclear how much of the transfer constitutes the loan versus a payment for their services or sale of XCH for CNI as it goes to the same hot wallet address. With the recent uptick in XCH trade volume, increasing the loan amount to help the MM maintain market liquidity is not surprising.

Coin spend diagram from Strategic Reserve to market maker hot wallet.

To me this is a positive sign that the XCH markets are maturing and the market maker finds the venture profitable enough to continue operating.

What does a Market Maker do? See the first post.

Share the alpha
Avatar photo
Slowest Timelord
Articles: 62


Leave a Reply

Your email address will not be published. Required fields are marked *