To: Token Project Founders in Crypto

For too long, market makers have been feasting on the knowledge gap of token project founders who are the very lifeblood of this industry...

We know because we've been on the other side of the table. The cofounders of Adaptive Frontier actually joined the crypto industry full time at a 2017 ICO, where we were pitched by market makers and received egregious proposals that didn't make economic sense to us. We were lucky to have the finance and technology knowledge to properly evaluate the proposals as well as to self-serve, and as a result decided to pass on all of the offers and do our own market making instead, successfully getting listed; that's what started our market making journey. [You can read more about our founding story here.]

Your complaints about the unfairness of market makers resonates with us, and that's why we've decided to also provide project token market making services in conjunction with our main business line of high frequency, low latency, delta neutral statistical arbitrage trading of the majors (BTC, ETH, SOL). But we're not doing it the same as everyone else - we've pioneered an alternative to the usual loan + free option model, a way to better align the interests of token projects and their market makers.

The current model of giving away a free valuable option in return for commoditized market making services pits the token projects and market makers against each other. As you well know, the market maker can just sell the tokens and pocket the money. Most project founders don't have an options trading background, and thus often don't feel well equipped to evaluate each market maker proposal, but on the other hand the service is required to get a centralized exchange listing which is where all the liquidity resides.

The good news is that project founders are very aware of this knowledge gap now, but resources to close this gap are still few and far in between. We want to change things by providing education to project founders about how the options work as well as how market makers operate: what variables impact the economics to which degree, which levers are available alongside their tradeoffs, and how they might interact to provide the liquidity required for success for each project's unique needs.

But most importantly, we're also seeking to align incentives by sharing a 50:50 profit split with the project on the entirety of our trading of that project's token that we market make for, including the option portion.

This small tweak changes the relationship between market maker and token project completely, in a big way. 

Through this profit split, token projects now finally have a chance to take what was previously a cost and turn it into a potential revenue source. 

We don’t need to dump your tokens to make money - instead, we deploy our 5+ years of crypto native market making experience using a suite of battle tested high frequency algos to enable you to go long volatility on your token. Our trading strategies excel in option scalping such that if prices frequently move above and below the strike price, we are able to capture that volatility and turn it into profits which we then share with you. We feel this is only fair - why shouldn't you get to benefit from the hard work of building a community and driving value to your token?

Fundamentally, we hope to build trust with the projects, a deeper relationship with the crypto ecosystem, and a better industry. Our core belief is that if we can extend the longevity of projects we partner with, that is a win-win for the projects and the industry, move towards a relationship that is symbiotically beneficial.

Why hasn't anyone else done this?

We expect other firms to follow suit to remain competitive.

But never forget, all of these existing players have had the chance to make a change, and they didn't take it. That's because our culture is different: we are willing to push the boundaries of what's possible, find win-win scenarios, and build the crypto industry we want to see. 

We will not stop and rest on our laurels with this one innovation - we have more ideas to shake up the crypto world in the works that we will share when ready.

We are Adaptive.
Welcome to the Frontier of what's possible.

Feel free to reach out to learn more about our project token market making services:
pmm@adaptivefrontier.com

Please include your project links, tokenomics, and anticipated listing date and venues (if applicable) in your initial inquiry alongside any and all questions you have - thanks in advance and look forward to hearing from you!

To: Token Project Founders in Crypto

For too long, market makers have been feasting on the knowledge gap of token project founders who are the very lifeblood of this industry...

We know because we've been on the other side of the table. The cofounders of Adaptive Frontier actually joined the crypto industry full time at a 2017 ICO, where we were pitched by market makers and received egregious proposals that didn't make economic sense to us. We were lucky to have the finance and technology knowledge to properly evaluate the proposals as well as to self-serve, and as a result decided to pass on all of the offers and do our own market making instead, successfully getting listed; that's what started our market making journey. [You can read more about our founding story here.]

Your complaints about the unfairness of market makers resonates with us, and that's why we've decided to also provide project token market making services in conjunction with our main business line of high frequency, low latency, delta neutral statistical arbitrage trading of the majors (BTC, ETH, SOL). But we're not doing it the same as everyone else - we've pioneered an alternative to the usual loan + free option model, a way to better align the interests of token projects and their market makers.

The current model of giving away a free valuable option in return for commoditized market making services pits the token projects and market makers against each other. As you well know, the market maker can just sell the tokens and pocket the money. Most project founders don't have an options trading background, and thus often don't feel well equipped to evaluate each market maker proposal, but on the other hand the service is required to get a centralized exchange listing which is where all the liquidity resides.

The good news is that project founders are very aware of this knowledge gap now, but resources to close this gap are still few and far in between. We want to change things by providing education to project founders about how the options work as well as how market makers operate: what variables impact the economics to which degree, which levers are available alongside their tradeoffs, and how they might interact to provide the liquidity required for success for each project's unique needs.

But most importantly, we're also seeking to align incentives by sharing a 50:50 profit split with the project on the entirety of our trading of that project's token that we market make for, including the option portion.

This small tweak changes the relationship between market maker and token project completely, in a big way. 

Through this profit split, token projects now finally have a chance to take what was previously a cost and turn it into a potential revenue source. 

We don’t need to dump your tokens to make money - instead, we deploy our 5+ years of crypto native market making experience using a suite of battle tested high frequency algos to enable you to go long volatility on your token. Our trading strategies excel in option scalping such that if prices frequently move above and below the strike price, we are able to capture that volatility and turn it into profits which we then share with you. We feel this is only fair - why shouldn't you get to benefit from the hard work of building a community and driving value to your token?

Fundamentally, we hope to build trust with the projects, a deeper relationship with the crypto ecosystem, and a better industry. Our core belief is that if we can extend the longevity of projects we partner with, that is a win-win for the projects and the industry, move towards a relationship that is symbiotically beneficial.

Why hasn't anyone else done this?

We expect other firms to follow suit to remain competitive.

But never forget, all of these existing players have had the chance to make a change, and they didn't take it. That's because our culture is different: we are willing to push the boundaries of what's possible, find win-win scenarios, and build the crypto industry we want to see. 

We will not stop and rest on our laurels with this one innovation - we have more ideas to shake up the crypto world in the works that we will share when ready.

We are Adaptive.
Welcome to the Frontier of what's possible.

Feel free to reach out to learn more about our project token market making services:
pmm@adaptivefrontier.com

Please include your project links, tokenomics, and anticipated listing date and venues (if applicable) in your initial inquiry alongside any and all questions you have - thanks in advance and look forward to hearing from you!