Wintermute has quietly built a reputation as a leading market maker for multiple meme tokens. While it is difficult to predict which ones will grow to viral popularity, Wintermute appears to have relationships with many of the projects that reach this status.
Wintermute’s portfolio appears to be a partial predictor of Binance’s picks for new meme token listings. The market maker has taken up multiple tokens to build liquidity and optimize trading. It is among the top holders of hot memes like NEIRO, GOAT, MOODENG, POPCAT, and others.
The market maker is on track to expand beyond its competitor DWF Labs, and is way ahead of others like Jump Trading and Amber Group. Wintermute has also grown more aggressive in its inclusion of new tokens, leading some to $1B valuations. Previously, it onboarded some of the top tokens from Web3, DeFi, L2, and other narratives, before quickly transitioning into memes.
Binance has so far fully listed six meme tokens on futures and spot markets, with a total of 17 tokens from the market maker’s portfolio on its perpetual futures market. This leaves a short list of tokens from Wintermute’s wallets, which could move toward a listing. The tickers include APU, PEPECOIN, SPX, COQ, MANEKI, MICHI, MOTHER, REKT, and BENJI.
Wintermute’s portfolio has no special order, but it has served as a signal for tokens that may be ready to pay off. It often uses its liquidity to initiate high-velocity trading for meme tokens, which draws in other traders.
Notably, being on Wintermute’s portfolio does not guarantee a token’s longevity or success. Previously, the market maker had much bigger holdings in memes like PEPECOIN and BasedAI, before rolling over into hotter assets.
The addition of a meme to Wintermute could also be a signal to the community, as in the recent addition of WEN to the portfolio. The community expects to see a rally driven by the market maker even though WEN remains relatively flat.
Binance launches WHY token from Wintermute portfolio
The latest listings on Binance include the CHEEMS and WHY tokens, two more additions to its perpetual futures markets. Binance continues to expand its interest in meme tokens, adding the futures market as a less binding option compared to opening deposits for a spot market.
WHY is the seventeenth token listed by Binance that is also a part of Wintermute’s holdings. The previous listing from the market maker’s portfolio was SLERF, which also gained a Binance perpetual futures market.
Now, the trend has gained attention as people have noticed that Binance’s listing choices may be coinciding with Wintermute’s token selections.
The addition of tokens to Wintermute may hinge on project agreements to provide liquidity and boost visibility. The intervention works in bringing tokens to the spotlight and boosting their reported trading volumes. Wintermute has been building its tools since the bear market in 2022, preparing for a new cycle similar to 2021, as expressed by Evgeny Gaevoy, founder and CEO of the market maker.
The meme super cycle may be just the opportunity that Wintermute has been looking for, with endless demand to smooth out prices and mitigate risk.
Wintermute hosts a wide selection of meme tokens, forming its own Top 25 of memes. Most of the memes also overlap with the selection of influencers like Murad Mahmudov and Ansem. They also hold a generally high mindshare.
All of those factors appear to be prerequisite achievements before Binance gives the tokens even bigger exposure. An estimated 64% of the Wintermute portfolio has gained representation through Binance, often soon after Wintermute’s own token purchase.
Meme token market remains volatile
The meme token market still depends on the dramatic rise of assets. It is also at risk of rapid losses. The market erased some of its value within a day, sliding from a peak of $120B in capitalization down to $110B.
Memes also have unpredictable fund inflows and drawdowns. Often, a big listing is more likely to lead to a crash than a rally. The recent addition of DogWifHat (WIF) to Robinhood resulted in a price drop, from above $3.50 down to the $3.30 range.
DOGE was the big loser this time, erasing more than 10% of its value. The meme market could outperform Bitcoin (BTC) on the upside. However, it also faces risks of much bigger corrections.
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