Where do the crypto whales hang out?

Leo Zhang

By Leo Zhang

Exchanges are growing steadily larger, but the security of their infrastructure (and their trading volumes) are still eclipsed by exchanges in traditional markets. In order for the whales of the cryptocurrency world to get a good price and stay under the radar, they have to pursue transactions "offline," through OTC trading desks.

OTC is much larger than Bitcoin exchange volume: where real whales trade
(CCN, by Joseph Young)

"This week, TABB Group claimed that the OTC market of bitcoin is at least two to three times larger than exchange market. Given that the bitcoin exchange market processes around $4 billion worth of trades per day, if the TABB’s assessment is accurate, the OTC market of bitcoin is processing more than $12 billion worth of trades on a daily basis."

Beginner's guide to trading cryptocurrency over the counter
(i2 Trading, by Ravi Doshi)

"Typical clients of an OTC desk are hedge funds, investment managers, family offices, and high net worth individuals looking to transact in order sizes upwards of $100,000 USD. Here's how it works."

Technical Updates

State Channel applications
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"Counterfactual is an open-source project that is tackling this problem head on. Our goal is to make it easy for developers to build their applications using state channels on ethereum. You can read more about the goals of the project on our website, and check out the code on our github."

Bitcoin Q&A: Block capacity and embedded data

News & Commentary

Canaan wants to put Bitcoin mining chips inside TVs
(CoinDesk, by Madeline Meng Shi)

"Canaan has also debuted the Avalon Miner A9, which provides a hashrate of up to 30 TH/s, with a power consumption of 1,720 watts per unit, according to Canaan's website. The price of the new miner has not yet been disclosed on the website."

Brokers' cryptocurrency deals are focus of SEC review
(Bloomberg, by Benjamin Bain)

"To be sure, some brokerages and money managers have reported their involvement to regulators and have asked for guidance to ensure they’re complying with the law. Others have been less forthcoming, and the regulatory landscape is complicated by legal wrangling over which assets should be considered securities under the SEC’s jurisdiction."

Which narrative will dominate the next bull market
(Token Daily, by Nathaniel Whittemore)

"Market narratives are the set of beliefs that investors use to explain market behavior and explain their actions. For example, right now, there is a market narrative that states that if the SEC approves a Bitcoin ETF, it will trigger a significant influx of institutional investment. Further, because there is a CBOE-backed proposal floating around, it is more likely than ever to happen in the coming weeks. With that ETF decision expected by August 10th, many are pointing to this particular market narrative as explaining last week’s market gains."

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The role of leveraged share repurchase in Apple's market cap