{"id":3783,"date":"2026-10-09T13:00:36","date_gmt":"2026-10-09T13:00:36","guid":{"rendered":"https:\/\/tdmm.io\/insights\/?p=3783"},"modified":"2026-10-09T13:12:19","modified_gmt":"2026-10-09T13:12:19","slug":"how-to-choose-a-crypto-market-maker-in-2026","status":"publish","type":"post","link":"https:\/\/tdmm.io\/insights\/blog\/how-to-choose-a-crypto-market-maker-in-2026\/","title":{"rendered":"How to Choose a Crypto Market Maker in 2026: A Data-Backed Guide for Token Launches"},"content":{"rendered":"
The short answer<\/b><\/h2>\n
To choose a crypto market maker, map every venue your token will trade on, take spread and depth targets from tokens of your size, and send the same written brief to three firms. Score the answers on seven criteria: fit for your stage, CEX and DEX coverage, deal transparency, KPIs and reporting, conduct record, regulatory standing and lifecycle scope. Price every proposal in dollars, including the option value of any token loan, check each firm against enforcement records, and write spread, depth and uptime per venue into the contract. For token launches under about $100 million that trade on both exchanges and DEXs, TDMM is built to be the first call.<\/p>\n
Key takeaways<\/b><\/h2>\n
\n
Choose on measurable service, not on a logo.<\/b> The decision comes down to seven criteria that can each be checked: fit, coverage, deal transparency, KPIs and reporting, conduct, regulatory standing and lifecycle scope. Volume is not one of them.<\/li>\n
Most books are thin, so the target has to come from data.<\/b> TDMM measured 2,680 order books on Gate and MEXC on 9 October 2026. The median spread was 31.0 basis points, and 77.3% of books could not absorb a $10,000 order on their thinner side within 2% of the price.<\/li>\n
The gap between a good book and a bad one is large.<\/b> For tokens worth $5 million to $25 million, a $1,000 round trip cost 57.5 basis points in the best quartile of books and 348.1 in the worst, a 6.1 times difference inside one tier.<\/li>\n
One good venue is not coverage.<\/b> Of 767 tokens listed on both exchanges, 26.3% had under a quarter of the stronger venue\u2019s depth on the weaker one, and 21.4% were thin on one exchange while adequately quoted on the other.<\/li>\n
Uptime has to be a contract term.<\/b> TDMM sampled 1,240 books every minute for 60 minutes. Of the books whose typical spread sat in their tier\u2019s top quartile, 46.2% held that standard 95% of the time.<\/li>\n
The free deal is often the expensive one.<\/b> A standard token loan with call options is worth about 51% of the loan at the volatility of a new listing. Above a valuation of about $23.5 million, that gives away more than a year of $5,000 retainers on three exchanges.<\/li>\n
Check the record before the first call.<\/b> Gotbit and its founder, CLS Global and MyTrade MM\u2019s founder have pleaded guilty in US wash-trading cases, and a Novora study of more than 150 major protocols found only one that disclosed any market maker terms.<\/li>\n
Start 90 days before the token launch.<\/b> Selection, pricing, diligence, contracting, exchange disclosure and funding each take time, and inventory must be on every venue before the first trade.<\/li>\n<\/ul>\n
Nine numbers behind the choice. Sources as dated in the panel.<\/figcaption><\/figure>\n
How do I choose a market maker? The seven steps at a glance<\/b><\/h2>\n
The selection process in the order the work should happen. Method: TDMM.<\/figcaption><\/figure>\n
\n\n
\n
\n
Step<\/strong><\/p>\n<\/td>\n
\n
What you do<\/strong><\/p>\n<\/td>\n
\n
What you end up with<\/strong><\/p>\n<\/td>\n<\/tr>\n
\n
\n
1<\/p>\n<\/td>\n
\n
Map every venue for the next six months and take spread and depth targets from your market cap tier<\/p>\n<\/td>\n
\n
A one-page target, in numbers<\/p>\n<\/td>\n<\/tr>\n
\n
\n
2<\/p>\n<\/td>\n
\n
Decide which kind of provider you need<\/p>\n<\/td>\n
\n
A shortlist of the right type of firm<\/p>\n<\/td>\n<\/tr>\n
\n
\n
3<\/p>\n<\/td>\n
\n
Send three firms the same written brief of twelve questions<\/p>\n<\/td>\n
\n
Answers that can be compared line by line<\/p>\n<\/td>\n<\/tr>\n
\n
\n
4<\/p>\n<\/td>\n
\n
Score each firm 1 to 5 on seven weighted criteria<\/p>\n<\/td>\n
\n
A total out of 100 and a knock-out list<\/p>\n<\/td>\n<\/tr>\n
\n
\n
5<\/p>\n<\/td>\n
\n
Price every proposal in dollars, options included<\/p>\n<\/td>\n
\n
A like-for-like cost for 12 months<\/p>\n<\/td>\n<\/tr>\n
\n
\n
6<\/p>\n<\/td>\n
\n
Check enforcement records, licences, references and live books<\/p>\n<\/td>\n
\n
A firm you can disclose to an exchange<\/p>\n<\/td>\n<\/tr>\n
\n
\n
7<\/p>\n<\/td>\n
\n
Put KPIs, a stress clause and loaned-token terms in the contract, tell each exchange, fund every venue<\/p>\n<\/td>\n
\n
A mandate you can measure from day one<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
The rest of this guide works through each step, with the data behind the targets and the arithmetic behind the price.<\/p>\n
What a crypto market maker does, and what it does not<\/b><\/h2>\n
A crypto market maker is a firm that continuously posts buy and sell orders for a token, holding inventory on both sides, so anyone can trade at a visible price at any moment. On a centralised exchange it places and cancels limit orders in the order book. On a decentralised exchange it manages where pool liquidity sits. TDMM\u2019s guide to how market making works in crypto exchanges<\/span><\/a> covers the mechanics.<\/p>\n
![\"Panel](\"https:\/\/tdmm.io\/insights\/wp-content\/uploads\/2026\/10\/01-how-to-choose-market-maker-numbers-300x169.png\")
![\"Eight](\"https:\/\/tdmm.io\/insights\/wp-content\/uploads\/2026\/10\/02-seven-step-market-maker-selection-300x169.png\")
![\"Grouped](\"https:\/\/tdmm.io\/insights\/wp-content\/uploads\/2026\/10\/05-spread-benchmark-by-market-cap-300x169.png\")
![\"Grouped](\"https:\/\/tdmm.io\/insights\/wp-content\/uploads\/2026\/10\/06-depth-benchmark-by-market-cap-300x169.png\")
![\"Grouped](\"https:\/\/tdmm.io\/insights\/wp-content\/uploads\/2026\/10\/07-thin-order-books-by-market-cap-300x169.png\")
![\"Grouped](\"https:\/\/tdmm.io\/insights\/wp-content\/uploads\/2026\/10\/08-execution-cost-best-vs-worst-book-300x169.png\")
![\"Table](\"https:\/\/tdmm.io\/insights\/wp-content\/uploads\/2026\/10\/03-market-maker-provider-types-compared-300x169.png\")
![\"Bar](\"https:\/\/tdmm.io\/insights\/wp-content\/uploads\/2026\/10\/09-cross-venue-coverage-gap-300x169.png\")
![\"Twelve](\"https:\/\/tdmm.io\/insights\/wp-content\/uploads\/2026\/10\/17-twelve-questions-for-a-market-maker-300x169.png\")
![\"Seven](\"https:\/\/tdmm.io\/insights\/wp-content\/uploads\/2026\/10\/04-market-maker-selection-scorecard-300x169.png\")
![\"Worked](\"https:\/\/tdmm.io\/insights\/wp-content\/uploads\/2026\/10\/19-scoring-three-market-maker-proposals-300x169.png\")
![\"Table](\"https:\/\/tdmm.io\/insights\/wp-content\/uploads\/2026\/10\/11-market-maker-deal-structures-300x169.png\")
![\"Heat](\"https:\/\/tdmm.io\/insights\/wp-content\/uploads\/2026\/10\/12-token-loan-option-value-heatmap-300x169.png\")
![\"Line](\"https:\/\/tdmm.io\/insights\/wp-content\/uploads\/2026\/10\/13-retainer-vs-token-loan-by-fdv-300x169.png\")