Low-Cap Altcoin Spread Management
Below a certain float, the goal of MM is not depth — it is keeping the spread from looking embarrassing on a screenshot. That is a different mandate, with a different KPI matrix and a very different price tag.
- Float band
- Sub-USD 25M circulating
- Panel
- Often single MM, one or two venues
- Headline KPI
- Capped time-weighted spread
- Risk to avoid
- Wash-trading delisting
What a small-cap MM mandate actually does
Holds a one-sided cap on spread, replenishes the inside with modest size, and keeps two-sided uptime above the venue's minimum. That is the brief — not depth, not volume.
Where issuers go wrong
Paying for fake volume to chase listings. Every major venue now actively monitors for wash trades and the delisting risk is binary. The right MM will refuse the brief in the first call.
Is it worth running an MM at all on a sub-USD 10M token?
Usually yes, but at a much lower retainer than headline mandates. A capped-spread programme keeps optionality open for a future credible listing without burning capital.
Live decision on the table?
Panel design, term-sheet review, KPI matrix, or a venue rebate negotiation — direct partner time, no pitch deck.