How to Choose the Right Market Maker: 5 Key Criteria Every Project Should Know 

By Freya Yu, Business Development Manager at Yellow Capital

​​Launching a token is one of the most important milestones in any project’s journey. Teams often focus on tech, community, and marketing. But there’s one factor that is often overlooked – choosing the right market maker. 

A market maker isn’t just there to “post orders” on the book. They’re your liquidity partner, your buffer against volatility, and sometimes the invisible force shaping how investors, exchanges, and your community see your project. Done right, market making creates stability and trust. Done wrong, it can wreck your charts, trigger panic, and damage your reputation beyond repair.

So, how do you pick the right one? Let me walk you through the five things I always recommend looking for in a market maker – together with some red flags to watch out for. 

1. Proven Exchange Experience & CEX Relationships 

The first thing you should check is whether a market maker really knows their way around exchanges. A good one acts as a bridge between your project and major CEXs. The best partners have guided projects through listings on platforms like Binance, OKX, or Bybit, and they know all the ins and outs – rebate programs, order book mechanics, and the quirks that can make or break early liquidity.

It’s not just about execution either. The right market maker can also coordinate with exchange teams to secure extra visibility – banners, AMAs, or campaigns that put your token in front of the right audience. When you have this level of integration, your token doesn’t just launch smoothly; it launches with momentum.

2. Strategy and Technical Capability

Market making today is far more than filling the order book. The right partner should use smart trading systems that can adapt in real time – adjusting orders, spreads, and depth to keep your market healthy, even in volatile conditions.

But tech alone isn’t enough. Strategy is just as critical. A strong market maker knows how to align liquidity with your narrative – whether it’s a major announcement, an airdrop, or a new partnership. That way, liquidity isn’t just sitting there; it’s actively supporting your story and amplifying your momentum at the right moments.

 3. Risk Control & Asset Management Ability

One of the most overlooked roles of a market maker is risk management. It’s not just about placing orders – it’s about defending price levels, smoothing out volatility, and keeping confidence intact.

A professional partner will be transparent about how they manage your token and USDT allocation, with a clear plan for sustaining stability. They’ll also put in safeguards against things like slippage, whale trades, or manipulation. Projects that ignore this often learn the hard way – sudden price crashes can happen even when there’s genuine demand. That’s why asset management is a real marker of long-term reliability.

4. Flexible and Transparent Collaboration Models

Every project’s needs are different, so how you work with your market maker should fit your situation. Whether it’s a retainer, profit-sharing, or token-for-liquidity deal, the terms should be clear and KPIs agreed on from the start.

Transparency is key. You should have access to performance data and reports that show how liquidity is being managed. And flexibility matters too – a trustworthy market maker won’t lock you into rigid contracts. They’ll offer trial periods or exit options so you can test the collaboration without taking on unnecessary risk.

5. Communication and Partnership Mindset

Finally, never underestimate communication. The best market makers are not faceless systems or ticket queues –  they’re real partners who are responsive, professional, and proactive. You should have access to an experienced team that understands not just liquidity mechanics, but also how to sync market strategies with your narrative, KOL campaigns, and community sentiment.

When a market maker sees themselves as a partner rather than just a service provider, everything changes. Liquidity becomes part of your broader growth strategy, not just a line item.

Common “Fake Market Maker” Red Flags to Avoid

Unfortunately, many “market makers” in the space are closer to opportunists than partners. Beware if they:

• Only display shallow depth without real volume
• Accept tokens but don’t generate consistent liquidity
• Push all liquidity burden onto you while carrying no risk
• Recycle the same liquidity pools across projects, creating slippage wars

If you see these signs – walk away.

Your market maker should be your first line of defense against volatility and manipulation, and a true partner in creating a healthy market. With the right balance of capital, strategy, and storytelling, a committed market maker can help unlock the full value of your project.

Don’t just go with the most expensive option. Choose the one who understands your vision and is willing to grow with you. A great market maker doesn’t just keep your chart alive — they help your entire ecosystem thrive.

At Yellow Capital, we’ve helped dozens of projects navigate exactly this challenge. If you’re preparing for your TGE and want to talk through liquidity strategies that set you up for success, let’s connect.