Big players in the cryptocurrency space have set up their own private network for OTC trading, buying and selling billions every month among their little club. And instead of using Bloomberg, Symphony or anything of that caliber usually employed by traders on Wall Street, they just Skype it.
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Trading Billions via Skype
A small group of about twenty over-the-counter (OTC) traders and clients including big investors, miners, payment processors and hedge funds, has reached a monthly trading volume worth billions of dollars. Instead of using an online exchange like Coinbase or Kraken, the participants close major deals chatting on Skype and settle them by sending fiat via bank wires and cryptocurrency directly to each others’ wallets.
According to a report by , after volumes increased ten fold year-over-year some of these cryptocurrency desks now often handle over $100 million a day. DCG’s on average trades $75 million to $80 million daily, Chief Executive Michael Moro said, and in December reached a monthly record of between $1.5 billion and $2 billion. traded OTC up to $4 billion a month over the past year, spokeswoman Jennifer Hanley said.
To avoid potential problems some record calls, register with US regulators, follow KYC and compliance standards, as well as only trade bitcoin and a handful of altcoins. And as for their preferred chatting network, ’s global head of trading Bobby Cho explained that “We needed a tool that was global and more or less free and Skype provided that.”
Why Trade OTC?
Trading outside the popular cryptocurrency venues can be seen as risk management, trying to avoid losing funds in the case of another exchange hacking or any other incident that can take down an established exchange. “When the big hacks happen we tend to see business go up,” explained one OTC trader.
It can also be a way for wales to avoid making big waves or spooking the market by keeping their trades private. “Generally, you would go trade through an OTC desk when you have a large block trade you want to do without moving the market too much or incurring too much slippage,” said Kevin Zhou, founder of cryptocurrency-focused hedge fund Galois Capital.
Why would big players choose to bypass cryptocurrency exchanges to trade in such a way? Tell us what you think in the comments section below.
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, the world’s first marketplace for the exchange of sensor data, is proud to announce the listing of its utility token, DXT, just after rounding off the first week of its presale event. DXT token is already listed on a leading crypto exchange CoinFalcon.
The forthcoming listing is a testament to DataBroker DAO’s increasing reputation as the premier marketplace for Internet of Things (IoT) devices, after winning ICO pitch competition in San Francisco and taking the second prize at the Vilnius ICO Pitch Competition. The awards demonstrate DataBroker DAO’s unique business model and enterprising token economics.
DataBroker DAO represents itself a decentralized marketplace for IoT sensor data utilizing Blockchain technology to enable sensor owners to convert data into revenue streams. Users from any background and location in the world can now sell or buy local IoT data in a marketplace projected to reach 1.2 Trillion USD by 2019. By unlocking a previously overlooked and uncatered for a section of IoT data, DataBroker DAO has a headstart on a market sector that is forecasted to be worth approximately 120 Billion USD by 2019.
Listing any crypto on an exchange can significantly impact the value of a token and expose it to a large community. CoinFalcon is one of the most intuitive crypto exchange that enables users to seamlessly exchange cryptos, buy, sell or exchange over 30 different cryptocurrencies. The platform offers an ‘instant trading’ feature allowing users to instantly start trading their favourite cryptocurrencies as soon as their deposit is confirmed. All deposits on the platform is free, eliminating the loss of value that often occurs when transferring to an exchange.
Recently, DataBroker DAO has announced a “V2.0 Alpha” version upgrade based on feedback from both the community, testers, token holders, and alliance members. The update offers better stability and user experience. The platform has also announced a collaboration with IoT Application enablement platform, AllThingsTalk Cloud.
AllThingsTalk is a revolutionary ‘middleware’ platform providing users with end-to-end solutions for their hardware and software and enabling them to aggregate and process their IoT data. The platform serves as a bridge connecting IoT devices to web services, facilitating interactions, and storing data that can be visualised on mobile or web dashboards.
DataBroker DAO’s partnership with AllThingsTalk aims to provide a seamless onboarding experience for its ecosystem. Users and developers can now concentrate on developing and deploying ideas and solutions without worrying about the implementation of technical solutions.
DataBroker DAO is issuing its DTX utility token as the settlement vehicle for all transactions on its network. DXT began its presale event on March 19th, 2018 and finished on March 26th, 2018. Participants were able to contribute to the event and secure DTX tokens by using ETH at 4000 DTX per ETH. A minimum contribution was set at 10 ETH.
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