Most token founders will hire a market maker at some point, but the details of what happens behind the scenes often remain a mystery. They receive a monthly invoice, access to a reporting dashboard, and observe an orderly order book, yet the true workings that connect these elements are largely invisible.
We delve into EchoTrade, a tier-1 crypto market making firm founded in 2023, which operates order books across over 90 centralized and decentralized exchanges for more than 100 active token projects. In this article, we provide an authentic glimpse into a day in the life of a market making desk, featuring more than 20 traders and a wealth of experience from around 2,000 token launches.
00:00 UTC: The Quiet Hustle
As midnight strikes UTC, the Asian session is in full swing. EchoTrade’s night shift is diligently monitoring quotes across all venues where client tokens are traded. This may seem unremarkable, but it’s crucial work: keeping two-sided orders on every book, maintaining spreads within expected ranges, and ensuring continuous quote uptime.
A trader from the night rotation explains, “Large orders do not wait for business hours. If a holder decides to exit a significant position at 2 AM, our book must be prepared to absorb it. Our night shift team ensures this, managing inventory in real-time around the clock.” This aspect of crypto market making rarely gets highlighted but is vital for maintaining stability.
04:00 UTC: Handover Protocol
The night team hands over to the European desk with a comprehensive log for each token, detailing the book’s status, inventory changes, and any unusual trading activity requiring decisions from the project team.
This format is noteworthy for two reasons: First, it is organized by token rather than trader, ensuring a consistent record regardless of personnel changes. Second, it preemptively alerts the project team to critical information before the day begins. Founders on retainer receive this as part of regular reporting, a fact that often surprises new clients.
08:00 UTC: Countdown to Listing
As the clock ticks closer to 14:00 UTC, when a client token will go live on a second centralized exchange, the groundwork laid weeks prior becomes evident. EchoTrade emphasizes a standard onboarding process of four to six weeks before a listing.
By this time, the necessary infrastructure for the new venue is already in place, inventory is strategically positioned, and the depth and spread commitments are programmed into the quoting parameters. Coordination is now key, with the desk confirming the listing time and aligning the project’s marketing announcements accordingly.
The head of the European rotation candidly notes, “Projects that struggle on listing day often wait too long to engage a desk, treating the launch as a date rather than an ongoing process. By the time we get involved, the exchange has usually already asked who their market maker is, and they often have no answer.”
12:00 UTC: The Retainer Dilemma
Late morning brings a discussion with a prospective client centered on a fundamental question: how does a market maker get compensated, and how does that impact their incentives?
In the crypto industry, two primary models exist: the token-loan structure and the retainer model. EchoTrade opts exclusively for the retainer model, which eliminates token loans, call options, and profit-sharing, allowing projects to retain custody of their tokens. This arrangement is attractive to founders capable of funding it, as it clarifies the desk’s incentives and avoids potential conflicts of interest.
During the call, the desk provides transparency on market charges, advising founders to consider both the fees and the liquidity funding required to operate effectively. Anyone budgeting solely for the fee risks underestimating the total cost.
14:00 UTC: Launching into Action
When the new venue goes live, EchoTrade ensures that the book is two-sided from the very first minute, maintaining this balance during the opening hours of volatility typical for new listings.
For significant launches, the desk assigns three traders: one for the new venue, one for existing venues, and one to monitor project channels, ensuring comprehensive coverage. As the marketing team rolls out scheduled announcements, the book is prepared to absorb the resulting activity, thanks to prior positioning and planning.
By 16:00, the initial volatility stabilizes, and the token begins trading within the expected range, allowing the three-trader coverage to return to standard rotation.
18:00 UTC: Preparing for Unlocks
As afternoon approaches, EchoTrade holds a planning session for a client anticipating a major token unlock in three weeks. Unlock events can catch unprepared projects off guard, often leading to price drops as the market anticipates them.
The desk keeps a detailed calendar of all clients’ unlock dates, facilitating proactive preparations to ensure that both the book and the project’s communication strategy are ready for the impending activity. A well-coordinated message from the project can mitigate the impact of unanticipated market reactions.
Insights from a Day in the Life
A day on a market making desk like EchoTrade may lack drama when functioning optimally—and that’s precisely the goal. The true value lies in the events that don’t occur: the avoided market spikes, the seamless listing day, and the anticipated unlocks managed with precision.
EchoTrade has built a robust operation, with deep liquidity across 90+ venues and a retainer model that keeps client tokens under their control. For founders evaluating market making options, this combination is increasingly sought after in the industry.
