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Author Topic: Institutional Investors Are Using Back Door for Crypto Buys  (Read 392 times)
Brunusmagnus
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October 10, 2018, 10:25:13 AM
 #21

It is very probable that investors have tested the crypto's land, so as not to miss the opportunity.
And above all to try to understand how dangerous the crypto are ...

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October 10, 2018, 07:39:30 PM
 #22

Institutional investors have so many purchase options that they do not need to use backdoors.
This seems to me one of the many fake news that would claim to influence the market

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October 10, 2018, 08:18:50 PM
 #23

Institutional investors have so many purchase options that they do not need to use backdoors.
This seems to me one of the many fake news that would claim to influence the market

They're the best options available. Why would anyone with deep pockets go to an exchange and wreak havoc with the order book? Not only would your pricing go haywire, you'd get preyed upon by all the little shits lurking.

OTC is by far the most sensible route for many.
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October 11, 2018, 04:58:24 AM
 #24

It is now more revealing of fungibility's importance in cryptocurrencies if theres a market that fills a gap for institutional investors' demand for virgin coins with a 20% premium.

There were already presumptions before that markets for clean coins would emerge.
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October 11, 2018, 08:06:02 AM
 #25

Yeah. And with the nature of bitcoin, you can't really track private transactions at all which means that the actual trading volume for bitcoin is largely unknown, even with the misleading volumes on exchange, let alone off exchange.

We could see more and more people go with these private trades in the future, or agreements, settling for larger volumes than an exchange is usually handling.

Others have raised the issue of fungibility and I think that's a concern as well. Though, we have really no proof that this is actually happening just off the sole word of one person. I would find it extremely surprising if 20% premiums are being paid for these coins, tbh.
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October 11, 2018, 08:26:20 AM
 #26

What I found most intriguing was probably the fact that premiums are being paid for untainted coins. I don't know if this is being exaggerated or actually happening. If it was actually happening, that poses a real issue as to the fungibility of bitcoin, especially with it happening with such a wide spread of 20%.

It's actually happening. It makes sense as well, especially when you take into consideration that the 'criminal' side of Bitcoin isn't entirely cleared yet for legal entities.

I however don't think it will be a long term problem. Most institutions will not hold Bitcoin themselves, but use a custodial party to take care storage and whatnot. They will just stick to an ETF or other an product that grants them the exposure they are looking for. That's the perfect way to counter the storage difficulties and potential (but very unlikely) legal problems.

This very well may be the reason Coinbase will start to require KYC/AML even for pure crypto activities. They want to know who to screw over when they expect someone is 'abusing' their platform.
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October 11, 2018, 01:18:14 PM
 #27

The OTC market have long been there for large scale investors, but I guess this is only something that has been covered recently.

Obviously, large investors that don't necessarily have to belong to any particular institution would want to make private moves without affecting the rest of the market and/or to hedge against the volatility of bitcoin.

What I found most intriguing was probably the fact that premiums are being paid for untainted coins. I don't know if this is being exaggerated or actually happening. If it was actually happening, that poses a real issue as to the fungibility of bitcoin, especially with it happening with such a wide spread of 20%.
It is not that weird that people with huge amount of money trying to buy over the counter all together. If you go to binance or any other similar place and try to buy for 10 million dollars its going to affect the market for the worse for you, you will not buy 10 million dollar worth bitcoin at the same price, it will go up and you will have to pay premium on what you are doing because of the market.

However if you buy over the counter you can agree on a price and just pay 10 million dollars to get bitcoin at the current market price without any upwards movement, just on the agreed price of it.
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October 11, 2018, 10:51:36 PM
 #28

It is now more revealing of fungibility's importance in cryptocurrencies if theres a market that fills a gap for institutional investors' demand for virgin coins with a 20% premium.

There were already presumptions before that markets for clean coins would emerge.
I have also read a lot of information about officials of countries using money to invest cryptocurrency in secret. This shows that the trend of cryptocurrency investment is being developed around the world and government officials are not out of the game.

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October 13, 2018, 03:11:45 AM
 #29

No one understood the real concern. Bitcoin is not fungible. It was already predicted that a coin that has gone through the hands of criminals in the darknet, and sometimes coins that has gone through the gambling sites will be priced less than the coins that didnt. Its happenning.

Having that said, coin mixers will be very happy lol.
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October 13, 2018, 05:34:17 AM
 #30

If big Institutes comes here for investment i think it will strengthen the bitcoin and crypto system at all because when we have big investors we have a prosper situation and now many other coins are in the market which requires investment for long term projects are good but some time they fail due to lack of funds, May they use back doors but they are good at all.

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October 13, 2018, 12:55:34 PM
 #31

Institutional investors have so many purchase options that they do not need to use backdoors.
This seems to me one of the many fake news that would claim to influence the market

They're the best options available. Why would anyone with deep pockets go to an exchange and wreak havoc with the order book? Not only would your pricing go haywire, you'd get preyed upon by all the little shits lurking.

OTC is by far the most sensible route for many.
They won't even want to do that now until they have been able to accumulate enough. They are not dumb actually and just like you mentioned, they know the impact buying from an exchange would create and apparently, the best way to do all that without being spotted is via the backdoor channel, while they possibly keep suppressing the price on exchange from moving haywire (borrowing your word) until they sure have been able to accumulate as much as possible. At the end, the dumb ones will end up losing out because one way or the other, the buying spree on exchanges will start.

Institutional investors have so many purchase options that they do not need to use backdoors.
This seems to me one of the many fake news that would claim to influence the market
I am wondering which other option you think they would have than going the OTC way. We are talking about institutions here, buying large volume of digital coins and of course, you cannot expect them to simply just stroll into an exchange and start speeding things up regarding how speculative the price can be and rise fast to create FOMO. Institutions know when to be stashing up and would want to leave that uncertainty that way for now and keep accumulating until they feel they are fine with it, and if they will have to do all these via exchange, I am not sure the liquidity will be enough to not get the price pumped unnecessarily.
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November 05, 2018, 07:22:16 AM
 #32

Well, more people getting involved in crypto currency the better, whoever they maybe. I just hope we don't see another repeat of what happened early this year where they just pumped BTC and dumped it all in the span of 3 days so we can experience a year long price correction. let's keep on what we're doing. Buying and holding.

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November 21, 2018, 03:47:40 AM
 #33

I'm on th fence about this. I mean these institutions only care about one thing, and that is profit. The more profit they have, the more they're willing to put money up front. The problem is, i and like minded other would want crypto currency to be stable in the market nit necessarily boost it's price.

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November 22, 2018, 09:15:51 AM
 #34

I'm on th fence about this. I mean these institutions only care about one thing, and that is profit. The more profit they have, the more they're willing to put money up front. The problem is, i and like minded other would want crypto currency to be stable in the market nit necessarily boost it's price.
Of course! If I may ask, you that you are not even an institution, what do you care about? You think anyone is basically here to lose? Institutions run a business in the financial space, and the sole aim of every business is to make profit, no two ways about that.

However, for the fact that they have upper hand and they know how to always drive the market in their favor, based on this upper hand, they will keep doing that, and driving the weak hands from the market until they all become laggards eventually and only those who will be benefitting from the market would be the real believers, the institutions and those who managed to dodge the bullet of the institutions.
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