Thread by @ShaneCultra

I started my career as a market maker at the Chicago Board Options Exchange and then CBOT (was a runner first, then a clerk, then a trader) Market makers are paid to provide a market. @blur_io is doing exactly that. Paying you to be a market maker. 1/🧵

Part of being a market maker is getting hit on the bids and then selling higher. Today's markets are so liquid you really don't need them anymore but the CBOE was new and they needed people like us for liquidity. So the spreads were juicy. 2/🧵

The traders on #blur are not true traders. They don't understand they should have a decent spread between their bid and the sell price. The spread is being filled with $blur. Traders are keeping a tight bid because they think losses will be offset by the drop 3🧵

So while from the outside view this whole thing seems silly. From a person that watched exchanges being built first hand , everything that is taking place has precedent. The difference is the ability to drop coin to market makers & letting them tighten the spread to nothing 4🧵

The experiment will be what is the blur coin return if you keep a profitable spread up vs an at the floor spread. Will the drop be worth eating the royalty and the gas. 500 people think it is. We will know in April. I have my thoughts and gameplan 5🧵

But I am keeping to myself as I carve out a strategy. Trying a few different approaches on different wallets. So far I've lost .75 eth and received a few hundred points. I think those points will be worth more than .75 eth but of course we don't know. 6🧵

But this is a trading game and it doesn't take much time so I'm here for it. I played the game once on an options exchange, I can do the same on a digital asset exchange