World’s Most Used Exchange Binance CEO: Crypto’s Trading Volume is Double What People Think with OTC Values
When we look at the crypto volume to date, we must say October was the worst month that was recorded. As we are rooted in the bear market the amount of crypto that is being traded on a daily has slumped. But according to the CEO of Binance, he states that the real volume that is trading in the market is about twice as it was actually reported.
Changpeng Zhao went ahead to speak to the CNCB Ran Neuner, who pointed out the enormous OTC, over the counter market that takes place in hidden volume. He goes on to state the OTC volume could be as large as the live recorded volumes, so this means it could be at least 50% that has not yet been recorded on the CoinMarketCap.
The Crypto Volume Is Further Explained
The term volume, in this case, is the number of crypto coins that are being changed on a daily basis, which is usually measured on the CoinMarketCap. It is done by combining data that is gathered from the crypto exchanges like, the popular platforms such as Bitfinex, Binance, Coinbase, just to name a few.
The OTC Is Where The Whales Go And Trade
The over the counter trades has always been known as the avenue people would use when they wanted to secretly trade, and not have the business recorded on the order book. When it comes to the trade of Bitcoin, investors would easily buy and sell their tokens worth millions of dollars without the use of an exchange present.
In other cases, the exchange would take between the crypto brokers; this is the likes of Circle or the BitStocks which tend to require the investor to have high trading minimums. Thus, this aids the whale investors with moving their crypto coins without having to shake the markets.
It Could Be As Large As The Current Markets
As it was mentioned, Changpeng Zhao strongly believes that the OTC crypto market could be as large as the recorded volumes that across the major exchanges around the globe. A report that was released earlier this year by TABB went ahead to conclude that the OTC crypto market could actually be around two or three times larger than it has been reported.
The CoinMarketCap currently reports of about 24-hour volume that is about $12.5 billion. If the analysis done by Changpeng Zhao could be correct then the real trading volume that is taking place around the crypto market could of about $25 billion.
Reasons Why Whales Like Trading OTC
The very first reasons whales like the OTC trading option is the idea of liquidity. These types of investors are referred to as whales for a reason, they are into trading multimillion figures on a daily, this is both institutions and just individual investors. So when we look at the famous exchanges in the market, they wouldn’t have the millions of dollars in liquidity that will be able to facilitate these kinds of trades.
Thus, this is where private trades become an attractive option as they are able to access the needed buyers swiftly. Additionally, if a whale decided that they wanted to offload millions of bitcoins to the market it could lead to a crash of the market, so the OTC option gives the needed flexibility.