DCLiquidity intends to assist crypto innovators in the early stages of their venture.
Dexterity Capital, a quantitative trading firm, is launching a market-making service to help nascent crypto ventures get off the ground.
The new business wing, dubbed DCLiquidity, wants to help early-stage innovators navigate the sometimes perplexing technological, tokenomic, economic, and legal mazes that often precede even pre-seed fundraising rounds. It will make a market for the project’s token after the launch until liquidity develops naturally.
“Until then, you’ll need someone like us to make sure that a typical trader will look at your product and say, ‘Hey, listen, there’s enough organic [liquidity] – be it order-book depth or tight spreads – for this to be worth my time to trade,” Dexterity Capital’s head of business Arpan Gautam said.
For the shady private trading firm, it’s a change of pace. According to Gautam, Dexterity’s high-speed algorithms traded $1.2 trillion in tokens last year and currently perform up to 200,000 market-neutral deals every day.
Similar token-startup consulting services are offered by larger competitors. If you’re a pre-launch startup, it makes sense to recruit someone who knows someone — whether it’s market makers, exchanges, or venture investors.
One big-name trading firm’s consultancy line, according to a source, is seeing a lot of activity, which is a symptom of founders’ thirst for advice.
Some early projects get around the liquidity maze by partnering with well-connected market makers like Jump Capital or Alameda Research. DCLiquidity may invest in some of the initiatives it supports, but not all, according to Gautum.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.