Oh man, this is not good. The proposal failed. I don't think people understand the importance of having a market makers on CEXs.
There are few things people need to be aware of...
1.) THE IMPORTANCE OF A CEX
Listing your project on a CEX is important for the growth of the project, price discovery, awareness, and most important accessibility by NEW investors/users. The more options you have to buy the token, the easier it is to grow.
2.) THE IMPORTANCE OF HAVING HEALTHY TRADING VOLUMES (ie. Market Making)
When you list on a centralized exchange, there comes certain requirements your trading pair must maintain in order to stay listed on that exchange. ALL centralized exchanges require that your trading pair is LIQUID... ie. there are healthy opportunities for users to buy and sell within certain price ranges from the current price. If your project DOES NOT MAINTAIN that healthy liquidity of the pair it will get delisted. Market Makers are automated systems that maintain healthy trading volumes on both sides of the trading pair. In most cases it is MANDATORY that a project must have a Market Maker. Larger projects can usually take the risk of not having one as their token usually is very popular and their traders tend to organically provide acceptable liquidity. If your not in the top 100 cryptos, you will most likely need to use MM on your listings.
3.) HOW THIS COULD HURT SPS
Not providing Market Making (ie. liquidity) to the CEX trading pairs WILL;
PROPOSED SOLUTION
- @clayboyn Resubmit the proposal but properly explain the importance of Market Making to the community, as by reading most of the comments, people clearly don't understand the importance of this situation
- Support Market Making of USDT trading pairs on 2 exchanges (MEXC & Gate.io) for a contract period of 6 months.
My reasoning for MEXC rather than Crypto.com is becuase their existing trading volumes don't appear to be that good. Although Crypto.com in my opinion is the closest to ACCESSIBILITY for mainstream new mobile users, it doesn't appear to be popular for our token. If the trading volumes of MEXC are from market making and Crypto.com has NO market making... than I would go with Crypto.com instead of MEXC.
RE: SPS Governance Proposal - Contract Flowdesk for SPS Market Making Services