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0 pointsRC_ITR4y ago0 comments

The reasons for OTC desks is that if an individual wants to buy, say $100m of an asset, it's likely that they need to buy from multiple sellers.

If you do that by buying $10k x 10k transactions, your demand will increase the price of the asset and mean you pay more than current price for no good reason.

OTC desks either collect the $100m from large holders in big blocks, or they use working capital to constantly buy the asset and sell it for a single quoted price (hoping to gain on arbitrage).

In this particular case, they also offered the unique service of accepting /nzd vs. EUR/USD/JPY/KRW

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robocat4y ago· 1 in thread

> unique service of accepting /nzd vs. EUR/USD/JPY/KRW

Which could possibly be the reason why they are in trouble? The NZD has been dropping against USD over the last while, so any uncovered delays could hurt their margins?

robocat4y ago

To add: BitPrime was a very small operation. They do have 22 people on their about us page, but I would guess most of those are founders, sweat-equity, or intern-like (few salaried, even though salaries in NZ are wayyy lower than US).

> wants to buy, say $100m of an asset

https://www.bitprime.co.nz/about-us/ says:

  Victories
  Crypto Bought:2M+
  Crypto Sold: 90M+
  Users: 30K+

Very small. This isn't a sign of cryptogeddon.

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