How Do Market Makers Make Money? Market makers (MMs) don’t primarily profit from token capitalization (though it can happen), but mainly through fees: 💵 Profit from trading operations 💵 Selling tokens for investors and teams 💵 Fixed fees for managing trades and providing liquidity 💵 The price difference between a certain volume of tokens at the start and the end of the contract By the way, market makers generally follow two main models: 🃏Retainer Model In this model, the MM provides software for placing orders for a fixed fee. They may also take an additional commission from trading profits or a percentage on withdrawals. 👉 This model is suitable for smaller projects, as MMs don’t take tokens or affect the price. Examples: Gotbit, Kairon Labs. 🃏Loan-Type Model Here, MMs profit from the token price increase. They buy tokens at a fixed price and sell them at market price. The advantage of this model is that the risks are shared between the MM and the project — if the price doesn’t rise much, the MM doesn’t need to pay much for their services. 👉 But if the price skyrockets, their profit can be enormous. Examples: DWF, GSR.