Speculation is growing that Wintermute, a leading global algorithmic trading firm in digital assets, has become the first to provide liquidity for a new meme coin, the AI Prophecy (ACT).
ACT meme coin remains in the headlines following the controversial Binance listing on Monday.
ACT Ascends Wintermute’s Top 12 Holdings
The ACT community transferred 9.48 million ACT tokens (worth approximately $5.93 million) to Wintermute on Tuesday. The move marks the first instance of a top-tier market-maker engaging in the meme coin segment adopting ACT. The move also signals the potential for a boost in trading volume and liquidity for this new meme coin.
“It seems that Wintermute has become market maker for ACT,” Lookonchain said.
Wintermute Holding $5.93 Million Worth ACT. Source: Arkham
Market makers play a crucial role in cryptocurrency markets. They facilitate liquidity, ensuring that buyers and sellers can transact smoothly and reducing price volatility.
This role is especially critical in the often volatile meme coin space, where trading volumes and market sentiment can fluctuate significantly. Other renowned market makers include Jump Trading, Amber Group, DWF Labs, B2C2, GSR Markets, and Flow Traders.
By bringing The AI Prophecy on Wintermute, ACT gains a strategic advantage. It benefits from the deep liquidity and market stability that a professional market maker can provide. This move marks a significant shift, as meme coins historically relied on community-driven or informal trading arrangements rather than professionalized market-making.
In addition to ACT, Wintermute recently increased its meme coin holdings, including assets like GOAT and MANEKI. As it stands, it is the third-largest holder of GOAT tokens, with data on Arkham showing 47.468 million GOAT holdings worth $39.57 million. It also holds Moo Deng (MOODENG).
Beyond Wintermute’s expansion into meme coins, the global algorithmic trading firm recently added metrics like Issuance Network/Holding Ratio. This upscale reflects the firm’s sophisticated approach to managing its meme coin assets. Analysts speculate that Wintermute is positioning itself to surpass competitors like DWF Labs, aiming to become the leading meme coin market maker.
“Is Wintermute planning to take over from DWF Labs and become the No. 1 Meme Market Maker?” a popular user on X @ai_9684xtpa quipped.
Meanwhile, ACT remains the subject of controversy following its recent listing on Binance. As BeInCrypto reported, some critics alleged that it could contribute to “pump-and-dump” schemes.
This is where token prices are artificially inflated, only to crash when initial excitement fades. According to data on TradingView, ACT is up by over 2,600% since listing on Binance Exchange.
ACT Price Performance. Source: TradingView
Binance has faced similar scrutiny in the past with other meme coins, raising questions about its listing policies. Wintermute’s involvement could potentially alleviate these concerns.
This is because the stability and liquidity provided by an established institutional-grade market maker may mitigate extreme price volatility and foster more sustainable trading dynamics, potentially attracting new interest from both retail and institutional investors.
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