Post by Auros

Crypto markets often point to volatility as the enemy - but Jason Atkins, CCO at Auros, reframes it:  Liquidity, not volatility, is crypto's biggest structural problem. ICYMI at Consensus HK, Jason unpacked how thin order books - without market maker depth - turn modest trades into extreme swings for retail and institutions alike. Key structural realities:   Order Book Fragility   Routine $1M orders on thin books shift prices 5-10%, creating "face-ripping" moves. MMs provide the bid/ask depth for smooth execution.  Retail & Institutional Risks   Slippage erodes small positions; large flows (ETF entries) become impossible without this buffer. MMs = first line of defense against catastrophic volatility. Takeaway? Market makers bridge TradFi discipline to crypto chaos - but regs + high vol threaten thinner liquidity ahead. Prioritise liquidity signals over price hype. Watch the full panel: https://lnkd.in/gDUQ3vxN