🚨 This Is What Happens When Market Makers Leave (DON'T IGNORE THIS)

Boxmining

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Not only are crypto companies and exchanges moving out of the US, some of the biggest market makers are also looking to move their operations out of the US. We know that market makers are pivotal in p...

Not only are crypto companies and exchanges moving out of the US, some of the biggest market makers are also looking to move their operations out of the US. We know that market makers are pivotal in providing liquidity for the crypto market. In this video, we will discuss what the effect and impact of market makers leaving the US will be to the US financial sector. 🌼 GET $30,000 in rewards on Bybit: https://partner.bybit.com/b/boxyt ●▬▬▬▬▬▬▬Chapters▬▬▬▬▬▬▬● 0:00 Introduction 1:04 Importance of Market Makers 2:25 Why Market Makers Are Leaving the US 3:49 The Consequences Of Market Makers Leaving 5:48 Conclusion ●▬▬▬▬▬▬▬Recommendations▬▬▬▬▬▬▬● 📲Binance Exchange: http://boxmining.co/binance 📖 Guides, tutorials and insights: https://boxmining.com/ 🔒Hardware Wallet: http://boxmining.co/ledger 👍🏻Brave Browser: http://boxmining.co/brave ●▬▬▬▬▬▬▬▬▬▬Community▬▬▬▬▬▬▬▬▬● Boxmining clips: https://www.youtube.com/channel/UCjFy3VBgOZanySOLhQu6GaQ Boxmining News Website: https://www.boxmining.com/ Telegram Group: https://t.me/BoxminingFam ●▬▬▬▬▬▬▬▬▬▬▬Social▬▬▬▬▬▬▬▬▬▬▬● Twitter: https://twitter.com/boxmining Discord: https://discord.gg/9qCpqpZm8G Facebook: https://www.facebook.com/boxmining ●▬▬▬▬▬▬▬▬▬▬DISCLAIMER▬▬▬▬▬▬▬▬● Boxmining, including its employees, are not affiliated with and do not endorse or sponsor any token sales, initial coin offerings, initial exchange offerings and/or airdrops (the “token sales”) unless clearly disclosed. The contents of these videos are for information purposes only. Boxmining and its employees do not provide investment advice and do not take one’s personal circumstances into consideration when providing information about token sales and cryptocurrency exchanges or platforms. In light of the above, Boxmining and its employees may hold the cryptocurrencies mentioned in the videos. Please note that there are legal requirements in various countries that may restrict token sales, and furthermore, the access to, and products and services provided by any of the cryptocurrency exchanges or platforms mentioned in these videos. Consequently, the contents of this video are not directed at or intended to be accessible by persons in any jurisdiction where the extension of the availability of the materials to which you are seeking access would breach any applicable law or regulation. Decisions to participate in token sales or to buy, sell or hold cryptocurrencies, as well as the access to and use of any cryptocurrency exchange or platform involves risk. You are also responsible for informing yourself about and observing any restrictions and/or requirements imposed with respect to any such token sale, or the access to and use of any cryptocurrency exchange or platform. You must use your own judgment or consult a professional for advice on such matters.

AI Analysis

Here’s the lowdown on what’s happening with market makers and crypto in the US:

The crypto market is facing a dangerous trend as major market makers are pulling out of the United States. This move could lead to a significant drop in altcoin prices over the next six to twelve months due to reduced liquidity and a shake-up in investor confidence. Ultimately, this situation spells trouble not just for crypto investors, but for the US financial sector as a whole, as it risks losing its leading position in the digital asset space.

Here’s a deeper dive into the situation:

* The Crucial Role of Market Makers: Market makers are super important because they keep the crypto market flowing smoothly, essentially providing continuous supply and demand. They’re constantly buying and selling crypto, which helps narrow the gap between the buy and sell prices (known as the "spread"). This makes the market efficient and allows you to execute your trades quickly. Without them, there's a serious lack of liquidity, meaning you could face "slippage risk," where your trade goes through at a worse price than you expected. It's really critical to understand how these players impact the market.

* Why Market Makers are Bailing from the US: Two of the biggest market makers, Jane Street and Jump Crypto, are specifically looking to move their operations out of the US. These firms have been massive liquidity providers for major US exchanges like Coinbase, Kraken, and Binance. While the official reason given is that the US federal government links them to the FTX and Terra Luna crises, the real issue is the increasingly confusing and intense regulatory environment. Both firms aren't abandoning crypto entirely; Jane Street is scaling back global expansion plans, and Jump Crypto is shifting focus from the US to international markets.

* The Regulatory Mess: The main driver behind this exodus is the US Securities and Exchange Commission (SEC) and its aggressive crackdown on crypto companies. The SEC has been suing big names like Coinbase, Ripple, and Binance, accusing them of selling unregistered securities. What’s frustrating is that these companies have reportedly been trying to play by the rules and cooperate with the SEC, yet they still face charges. The problem isn't necessarily strict rules, but rather extremely confusing ones. It seems even the SEC itself can't make up its mind whether digital assets are securities or commodities. They ask crypto exchanges to apply for licenses but offer no clear guidelines on what their regulatory framework should look like. This lack of clarity is compounded by internal conflicts; for instance, Chairman Gary Gensler sees all digital assets as securities, while ex-director Bill Hinman believes Ethereum (ETH) is not. On top of that, Congress hasn't even decided which agency should oversee digital assets. It's no wonder crypto companies lack confidence in operating in the US without fear of being penalized.

* Consequences for the US Crypto Market and Economy:
* Loss of Liquidity: The most immediate impact will be a significant reduction in liquidity within US crypto markets. This means higher price volatility and less efficient trading.
* Economic Brain Drain: If market makers like Jane Street and Jump Crypto actually leave, it will result in job losses or force skilled talent to move offshore, along with millions, potentially billions, of dollars flowing out of the US. This departure of capital and talent will definitely hurt the growth, competitiveness, and innovation of the US financial sector.
* Loss of Global Leadership: The US used to be a frontrunner in crypto, but countries like the UAE, Hong Kong, and Singapore are rapidly gaining ground. They’re doing this by establishing clearer regulatory frameworks and choosing to regulate through engagement rather than enforcement. The US risks losing its leading position.
* Increased Risk for US Investors: The presenter strongly feels that if the SEC were truly serious about protecting investors, their goal should be to keep crypto companies within the US by providing clear, timely regulations. Pushing these companies away will only drive them to countries with potentially less robust investor protections, inadvertently putting US investors at a greater risk of getting scammed. Even if companies leave, crypto isn't leaving the US, as about 20% of Americans already own crypto, and venture capitalists will keep investing.
* Financial Disadvantage: This situation doesn't necessarily endanger the global crypto market, but it certainly jeopardizes the US market. The US stands to lose a lot of money and will find it extremely difficult to regain dominance in the digital asset market. It's hard to be a financial superpower while effectively pushing away a trillion-dollar crypto industry.

In a nutshell, the lack of a clear, consistent regulatory framework in the US is forcing crucial players out, which will negatively impact the market's stability and the US economy's standing in the rapidly evolving digital asset space.

Transcript

All right, guys, we've been noticing a very dangerous trend over the last two months. With this trend going on, we see that over the next six to one year, a lot of gold coins might have their prices drop and drain. What is this trend you ask? That's market makers moving out of the United States. Market makers contribute a huge amount of liquidity to the market. They make sure that the trades that when people want to get in and out of particular coins, it's very fluid. If they do move out, they'...

All right, guys, we've been noticing a very dangerous trend over the last two months. With this trend going on, we see that over the next six to one year, a lot of gold coins might have their prices drop and drain. What is this trend you ask? That's market makers moving out of the United States. Market makers contribute a huge amount of liquidity to the market. They make sure that the trades that when people want to get in and out of particular coins, it's very fluid. If they do move out, they're going to shake a lot of investor confidence, especially these hedge funds that have invested millions of dollars into particular altcoins. They will be afraid that they can't exit cleanly and hence there'll be a drain overall. So it's actually very critical as crypto creators to understand what market makers are doing in the space and what impact they have in the market. So we've got Natalie here. So Natalie has been researching very heavily on market makers in the past few weeks. So if you guys like videos that are deep dives into what's the current dynamics in the crypto markets, make sure you subscribe to this channel. And with that further ado, let's set it to NAS. So the reason why market makers are so important in the crypto space is because they play a vital role in maintaining the liquidity of the crypto market. So they basically continuously buy and sell crypto, reducing the spread between the buy and sell orders. So this constant supply and demand make the market more efficient and enable investors to execute their trades quickly. And without market makers, there will be a shortage of liquidity leading to high slippage risk. According to Bloomberg, two of the biggest market makers in the US, Jane Street and Jump Crypto are looking to move their operations out of the US. And for the longest time, these two market makers have been liquidity providers for the biggest crypto exchanges in the US, such as Coinbase, Kraken and Binance. And the reason for this is because the US federal governments believe that they're linked to FTX and the Terra Luna crisis. As a result of this, Jane Street and Jump Crypto are retreating from crypto trading in the US as the regulatory environment on the industry has intensified. Both firms are actually still making markets and not abandoning the crypto industry entirely. However, Jane Street will be scaling back its global crypto expansion plans and Jump Crypto will be pulling back from US markets and expanding internationally instead. So what is causing market makers to move out of the US? Let's take a step back. The SEC has been cracking down on crypto in the past year or so, suing some of the largest names in crypto, such as Coinbase, Ripple and Binance, charging them for selling unregistered securities. But if you have been following the news closely, you know that these three companies have actually been playing by the rules and cooperating with the SEC. So why is the SEC still charging them? Well, it's not because the SEC has strict rules on crypto, but because their rules are just so confusing. What the fuck is this piece of shit? The SEC themselves can't even make up their mind whether digital assets are securities or commodities. They have been asking crypto exchanges to apply for licenses, but never gave them clear directions or what their regulatory framework looks like. Not only that, the actions and views of Chairman Gary Gensler and ex-director Bill Hinman is not aligned. Bill Hinman thinks that ETH is not a security, while Gary Gensler views all digital assets as securities. And the US Congress still hasn't decided which agency should be in charge of regulating digital assets. So how would crypto companies have confidence that they won't get charged by the SEC if they continue to run their business in the US? So what are the effects of market makers moving out or scaling back their businesses in the US? Well, the most immediate effect would be the crypto markets losing more liquidity. We all know that market makers provide the necessary support in maintaining stability of the crypto market. And if these two market makers are scaling back, this will increase price volatility and reduce market efficiency. And if Jane Street and Jump Crypto are actually moving out of the US, there will either be a loss of jobs or the US will be forcing talents offshore, millions and possibly billions of dollars will move out of the US. The relocation of Jane Street and Jump Crypto and the departure of skilled individuals and capital will definitely affect the growth and competitiveness as well as hinder innovation of the US financial sector. We all know that the US used to have a leading position in terms of crypto. But other countries such as UAE, Hong Kong and Singapore are starting to catch up by having clearer regulatory framework and regulating through engagement and not enforcement. And the thing is, if the SEC is as serious as they are in terms of protecting investors from bad actors in the space, their aim should be to keep crypto companies in the US. They should have clear regulations set in stone as soon as possible. Because although we're seeing crypto companies leaving the US, we know for a fact that crypto will never leave the US. Investors will still find ways to invest in crypto, and VCs will still be putting their money into different projects. And according to Coinbase, around 20% of American citizens own crypto. And the result of the US pushing crypto companies away from the US, is that these companies will then move to countries with clearer regulations. But this doesn't necessarily mean good investor protection. This will only put US investors in bigger risk of getting scammed by projects. All in all, these big market makers moving out of the US does not necessarily mean that the crypto market is in danger. But it certainly is for the US market. The US has long been a leading power in the crypto space. And with these crypto companies leaving the US, this is going to cause a lot of problems for the US financial sector. Because if that happens, the US will lose out on a lot of money. And it's going to be very difficult for them to reestablish dominance in the digital asset market. In today's day and age, it's very important for developed countries to be involved in a digital asset market. And it's even more difficult to be a financial superpower while pushing away a trillion dollar crypto market. So that concludes our video for today. Thank you for watching. I would also like to thank our sponsor for today, Bybit. If you haven't signed up for Bybit, you can sign up with our link down below, and you'll automatically get 20 USDT in your derivatives account. We have also done other videos which give you a breakdown on the SEC lawsuits with Coinbase and Binance. So make sure you check them out. Don't forget to like, share and comment down below if you have any questions for us. And subscribe to the channel if you haven't already. And until next time, bye!