OTC cryptocurrency trade on Skype on billions of dollars

OTC cryptocurrency trade on Skype on billions of dollars

The volume of a small group of about twenty of OTC traders and clients, including major investors, miners, payment systems and hedge funds can monthly to reach billions of dollars.

Instead of having to use a cryptocurrency exchange or exchanges, such as Coinbase or Kraken, the participants carry out all transactions via Skype.

According to Reuters, after the volumes of the cryptocurrency market has increased ten times, the momentum of such groups reached a hundred million dollars a day, some of them often handle more than 100 million dollars a day. Press Circle Secretary, Jennifer Hanley said that their volume of OTC trading over the last year has grown to $ 4 billion.

To avoid potential problems, some of the participants in these chats are registered with regulators in the USA, follow the KYC standards and only trade with bitcoin or with a few Althingi. As for the choice of means of communication, the head of the company Cumberland Mining Bobby Cho explained that “we needed a tool that was global and more or less free, and Skype meets these requirements.”

Why an OTC trade?

Work outside popular cryptocurrency exchanges can be viewed as a risk management and an attempt to avoid the loss of funds in case of breaking of the exchange or any other incident which may result in the loss of. As commented by one of the OTC traders:

When you crack another stock exchange, we usually have a volume increase.

It also avoids strong fluctuations in the market. Kevin Zhou, the founder of hedge Fund Galois Capital, commented:

If you want to avoid a sharp fall or rise of prices, it is better to use the services of OTC traders.

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