Yes, there are Crypto-currency brokers/exchanges which work as Market Makers to provide financial services.

In this case, the Broker or Exchange is likely to hedge against traders’ orders instead of sending liquidity from LPs.

The demerits of this case for investors are:

  • Errors of price quotes could be created intentionally
  • The broker or exchange could startup the business without owning a Crypto-currency(thus financial risk)

and more.

Although the most of the Crypto Exchanges are striving to provide STP(Straight Through Processing) execution environment according to their websites’ statements, the fact of them being a Market Maker could be surfaced once they have problems running the business.

1

XMXM

4.9 rating based on 1,166 ratings
4.9/5 1166
2

DerivDeriv

4.9 rating based on 143 ratings
4.9/5 143
3

LQDFXLQDFX

3.5 rating based on 93 ratings
3.5/5 93
4

FBSFBS

3.6 rating based on 99 ratings
3.6/5 99
5

FXTMFXTM

3.9 rating based on 43 ratings
3.9/5 43
1

PrimeBitPrimeBit

3.9 rating based on 7,130 ratings
3.9/5 7130
2

BinanceBinance

4.3 rating based on 7,662 ratings
4.3/5 7662
3

bybitbybit

4.2 rating based on 3,323 ratings
4.2/5 3323
4

XBTFXXBTFX

1.9 rating based on 4,447 ratings
1.9/5 4447
5

WisebitcoinWisebitcoin

3.3 rating based on 4,701 ratings
3.3/5 4701