OTC Trading

Cumberland Sees Massive OTC Moves During Crypto Market Rout — ‘Most Volume We’ve Seen This Year’

19/06/2022 by Idelto Editor

During the last week, while crypto markets got hammered, digital currency-centric over-the-counter (OTC) trading desks were swamped with orders. The cryptocurrency OTC trading desk Cumberland, a subsidiary of DRW, explained that on June 13, the firm saw 30% more volume than the previous year-to-date high on May 13.

Cumberland Says ‘On Big Swings, More Volume Tends to Come to OTC Desks’

Over-the-counter (OTC) trading desks allow high-net-worth crypto traders to trade coins without affecting spot markets as much as they would trading on a traditional exchange. OTC trading desks also provide liquidity for big buyers that smaller exchanges cannot provide. A number of companies offer OTC services to crypto traders like Kraken OTC, Falconx, Cumberland, Athena Investment Services, Crypto Desk, B2C2, Bankhaus Scheich, Bitpanda Plus, and Coin Cola.

Amid the recent crypto market carnage, the DRW company Cumberland tweeted about the firm’s OTC flow during the past week and let people in on some of the moves that were made. “The most frequent question we’re asked on weeks like this is ‘what does the flow look like?’” Cumberland tweeted on June 14. “OTC flow gives some insights into how the market is handling these major moves,” the OTC trading desk added. Cumberland was founded in 2014, and over the last few years, it has become one of the top OTC desks worldwide.

When Cumberland first started, news reports noted that the company was able to acquire massive amounts of bitcoin (BTC) via a few U.S. Marshalls’ operated auctions. Cumberland offers more than 30 different digital assets against 500 pairs, and the company claims to be “one of the largest liquidity providers in the cryptocurrency space.” Speaking about the recent crypto market rout, Cumberland disclosed that lots of crypto volume came directly to OTC desks.

Cumberland said:

On big swings, more volume tends to come to OTC desks, and yesterday was no exception; it was the most volume we’ve seen so far this year. In fact, it was 30% more volume than the previous YTD high, May 13th. Traders tend to use OTC during fast markets because it’s much easier to move size. Volumes were very BTC-centric, with about 75% of the total flow in bitcoin. ETH was the majority of the remainder. When looking to exit risk, traders tend to trade the most liquid products.

The crypto market bloodbath had shown a significant amount of leverage was wiped out during the last two weeks. Cumberland suggested that quite a bit of the flow on June 13 was liquidations. A number of crypto lending firms have been accused of being liquidated on very large positions in recent times such as Celsius. Large crypto hedge funds like Three Arrows Capital (3AC) are also being accused of having financial hardships and dealing with liquidations from over-leveraged positions.

“The flow ratio suggests a lot of the flow was liquidations, with a 2:1 ratio of sellers to buyers,” Cumberland’s Twitter thread concluded. “As always, Cumberland is proud to act as the backstop of liquidity during the most severe market moves.”

What do you think about Cumberland’s summary of OTC flow from the recent crypto market bloodbath? Let us know what you think about this subject in the comments section below.

Analysts Discuss Bitcoin Over-the-Counter Desks Bubbling With BTC Demand

01/08/2021 by Idelto Editor

Digital currency markets have been gathering gains again moving past the lows seen a few weeks ago. This week crypto traders have been discussing over-the-counter (OTC) desks bubbling with demand for bitcoin as the co-founder of 21st Paradigm explained, “high net worth individuals [and] institutions want your bitcoin.”

Analyst Says Big Market Players ‘Want Your Bitcoin’

Most traders either use decentralized exchange (dex) platforms or centralized exchange (cex) operations to acquire bitcoin (BTC) and a myriad of other digital currencies. However, high-net-worth individuals and institutions usually don’t leverage dex or cex applications, as they choose to trade via over-the-counter (OTC) trading desks. OTC trading or off-exchange trading is trading between two parties directly and usually with help from the OTC desk’s representative. In contrast to trades that take place on cex or dex platforms, these trades are not recorded on order books. Although, transfers from crypto OTC desks can be recorded.

Two days ago, the co-founder of the advisory firm 21st Paradigm, Dylan LeClair, tweeted about some large OTC transfers last week by sharing a chart from Glassnode analytics. “Big transfer volumes from OTC Desks over the last week,” LeClair said at the time. “High net worth individuals [and] institutions want your bitcoin,” he added. Another individual agreed with LeClair and said “Yessssirr,” because the individual, Will Clemente, shared a tweet on July 22 that had shown a similar trend.

“OTC Outflow RSI showing the strongest BTC buy signal since July of last year,” the analyst Will Clemente said to his 158,000 Twitter followers. “This indicates buying from institutions/high-net-worth individuals,” he added. A number of other traders discussing the subject on Twitter agreed with the OTC demand assessment and the social media platform is littered with threads discussing the subject. One individual tweeted:

Don’t give the smart money your BTC (or ETH)…

Noticeable Market Changes During China’s Morning Trading Sessions

A number of other ‘whale-like’ and large purchasing patterns were noticed by bitcoiners observing different metrics. While bitcoin has been rising, traders also suspect that China might be buying bitcoin. There have been a few noticeable market changes during the early morning hours in China, according to Trustnode’s research.

Meanwhile, during the last 24 hours bitcoin (BTC) has consolidated just above the $41K handle and has only moved +0.10% on Sunday, August 1. However, BTC is still up 17% against the U.S. dollar during the last week and 30-day stats show BTC has gained over 22%. Bitcoin had managed to jump above the $42K handle at $42,615 per unit, but has not been able to hold above the $42K zone for long periods of time.

What do you think about the bitcoin OTC demand assessment from traders and analysts on social media? Let us know what you think about this subject in the comments section below.

‘Huge Demand in India’ Spurs Zebpay to Launch OTC Bitcoin Trading Desk

30/07/2020 by Idelto Editor

Indian cryptocurrency exchange Zebpay is launching an OTC bitcoin trading desk. The exchange has shared the details with news.Bitcoin.com, stating that “There is huge demand” among bitcoin traders and arbitrageurs in India for OTC desk services.

Zebpay Sees Huge Demand for OTC Crypto Trading in India

Zebpay’s OTC desk offers “deeper liquidity and private, more personalized service to institutions and individuals with large orders that might be hard to fill on an open exchange,” the exchange’s OTC page details. Customers can trade BTC against INR with a minimum order size of 5 BTC. Registration for the new service began on Saturday but the official launch date is set for Aug. 3.

Nirmal Ranga, Vice President of Trade at Zebpay, has shared some details with news.Bitcoin.com about his platform’s upcoming service. “OTC constituted 90% of our total business until 2018, when the Reserve Bank of India notice came into the picture,” he described, adding:

There is huge demand among traders and arbitrageurs in India for OTC desk services, and the recent supreme court decision reversing the ban has caught the attention of large investors and institutions eager to explore this new asset class.

In March, the Indian supreme court quashed the circular issued by the central bank, the Reserve Bank of India (RBI), which banned banks from providing services to crypto businesses, including exchanges. Zebpay exited India shortly after the ban but returned earlier this year with new management.

The new OTC service is aimed at “traders, arbitrageurs, HNIs, long-term investors, asset managers, and institutions that want to buy/sell bitcoin in bulk,” Ranga further shared. “It will give them the opportunity to trade large quantities without being affected by the skewing of prices these quantities might entail on open order books on any platform.”

“Our OTC liquidity will come largely through active participants on the platform,” Ranga clarified. “We have existing long-term relationships with a few liquidity providers, through which we provide maximum liquidity with minimal or negative slippage.” The executive elaborated:

We plan on launching with the BTC/INR pair and making that our singular focus in the near future. However we will assess the market demand for other asset classes and accordingly consider launching USDT/INR and ETH/INR.

What do you think about Zebpay launching an OTC desk? Let us know in the comments section below.

The post ‘Huge Demand in India’ Spurs Zebpay to Launch OTC Bitcoin Trading Desk appeared first on Bitcoin News.

Chinese Authority Freezes Thousands of Cryptocurrency Traders’ Bank Accounts

09/06/2020 by Idelto Editor

Several thousands of bank accounts belonging to cryptocurrency traders have reportedly been frozen by Chinese police as a result of an extensive crackdown on illicit activities. Frozen accounts are not necessarily involved in wrongdoing and supposedly can be unfrozen if the authority finds no evidence of illicit activities.

Police Freeze Bank Accounts of Crypto Traders

The police in China’s Guangdong province have been freezing bank accounts of over-the-counter (OTC) cryptocurrency buyers and sellers in the country. Chinese publication 8btc reported on Monday that about 4,000 such bank accounts have been frozen since June 4 on the suspicion of being involved in illicit activities, including money laundering.

Chinese police have been ramping up efforts to crack down on telecom fraud, gambling and cryptocurrency scams, which could result in them freezing related bank accounts. Some accounts have been frozen without any trading activities for several months. According to the publication, the authority claims that tether (USDT) is frequently used in illicit activities. The police are even learning about blockchain and on-chain analysis to understand how to trace crypto assets.

However, frozen accounts are not necessarily involved in wrongdoing and supposedly can be unfrozen if the authority finds no evidence of illicit activities. One investor unexpectedly found that his bank account had been frozen after using yuan to buy cryptocurrency on a major crypto exchange a week ago, the news outlet conveyed.

Recently, a major scam allegedly using cryptocurrencies for money laundering was busted. According to local police in Guangzhou, a city in Guangdong province, the scammers created a fake Huobi website to defraud investors and transferred illegally obtained money to an overseas account.

The country’s central bank, the People’s Bank of China (PBOC), has been increasing efforts to crack down on money laundering. The publication noted that many crypto startups have been investigated by local financial bureaus and police. Since the PBOC closed down crypto exchanges in September 2017, people in China have been using peer-to-peer OTC trading to exchange between cryptocurrencies and yuan.

Meanwhile, cryptocurrencies are legal in China as several Chinese courts have ruled. The Shanghai No.1 Intermediate People’s Court, for example, ruled that bitcoin is an asset protected by law, and the Shenzhen Futian District People’s Court ruled that ethereum is legal property with economic value. In addition, China passed the Civil Code in May which protects cryptocurrency inheritance.

What do you think about Chinese police freezing bank accounts of crypto traders? Let us know in the comments section below.

The post Chinese Authority Freezes Thousands of Cryptocurrency Traders’ Bank Accounts appeared first on Bitcoin News.

CoinDeal Token – a Wide Range of Earning Possibilities

23/03/2020 by Idelto Editor

Launched in the second quarter of 2019, CDL Token is a rapidly growing project, which has more and more to offer for its users. From the very beginning, CDL was not supposed to be an ordinary token. The goal was to create a functional cryptocurrency which would enable the users of the CoinDeal exchange to gain additional benefits.

Earn a return of up to 11%

The reward in the form of CDL Token for voting reveals many possibilities for CoinDeal users. Not only can you use it to lower your fee or gain access to OTC trading, but now the exchange introduces another feature. By staking CDL Token, the equivalent of up to 11% return in the form of the selected currency: CDL, Bitcoin or USDT.

Staking, which is storing cryptocurrencies by blocking coins in your wallet for a fixed period, to get more profits, will appear on 19th March on CoinDeal. To start, you need to have at least 1000 CDL in your wallet as this is the minimum amount of tokens you can stake, and the maximum length of time to stake is one year. Besides, you can get an extra 30 CDL Tokens for your first staking.

By knowing the value of the tokens at the moment of staking, you can easily find out how much benefit you can receive from it. When you stop staking, the prize and your funds will return to your wallet immediately.

Reduced fees and convenient purchase of BTC

The most attractive feature seems to be an option to reduce the fee by having CDL Tokens in your wallet. Furthermore, CoinDeal has also reduced its standard fees to 0.29% and 0.39% for Maker and Taker. As a 150,000 CDL Token holder, your fees are only 0.05%.

OTC trading on CoinDeal is a convenient and quick way to trade and buy Bitcoins. Until now, it was available for Premium users, but now the exchange has also introduced the possibility to use it with 20,000 CDL Tokens.

New voting system

Voting on CoinDeal is a unique event – the exchange allows its users to choose new crypto. For the first few months, users were able to choose from the list of coins on the CoinDeal website. At the beginning of 2020, voting took place under completely new rules. Once again, CoinDeal met the users’ needs, letting them nominate the new cryptocurrencies that they want to see in the voting and on CoinDeal markets.

The first step that users have to take is nominating their favorite cryptocurrency in the appropriate CoinDeal Twitter post. Then, after about two weeks, the exchange closes the nominations and selects the TOP10 of the most interesting projects to put them in the voting.

Once the voting has started, users can cast one vote within 24 hours for one of the top ten currencies. For each vote, they will receive CDL Tokens in proportion to all votes cast. The last two votings allowed the participants to win the evaluation of the votes cast in USD. After positive feedback from CoinDeal users about this brand new way of casting votes, the system has been rebuilt. The new form of voting is more transparent and useful.

CDL on other exchanges

Since March 2020 CDL has been available on P2PB2B exchange The platform has 483 trading pairs including the CDL/BTC market with the current 24 h volume of over 18K USD. The WhiteBIT exchange is the third platform, besides CoinDeal, which has CDL token market, with over 4K USD 24 h volume on the CDL to the Bitcoin market.

Contact Email Address
[email protected]

Supporting Link
https://coindeal.com/

This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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