Bitpie “Instant Escrow” of OTC trading is Coming!
Recently, the New Zealand Transport Agency published a national traffic safety call-out, “Belted Survivor”, gathered hundreds of real stories from people who survived crashes thanks to their seatbelt. The survivor, who had a deep make-up injury on him left by seat belt pressure in the car accident, was grateful that the seatbelt saved his life.
Why should a child buy a “safety seat” in the car?
Why is there a word called “insurance” in this world?
The answer is obvious: you must wear a “seat belt”, you must buy a “safety seat”, you must…etc. If you are an over-the-counter trader, you must use the “Instant Escrow” service in Bitpie.
In recent years, besides placing advertisements and orders on OTC platform, there is actually another less-known OTC market, that is, private deals between acquaintances. In the case of private deals, the trade volume is actually much larger than OTC platforms’, it’s just average people are not so familiar with it.
OTC traders have been accustomed to the way of making and taking orders, sending fiat and cryptocurrencies directly without any third-party escrow. The whole process is based on mutual trust. It’s convenient and fast, but not safe though.
The risk of this mode is actually very high.
Let's see an example:
As early as the previous round of bull market in 2016, Alice (alias) had been defrauded by a Bob (alias).
Bob had been helping her as an agent to trade with others in an OTC way. Bob helped Alice cash in and out for a long time. He was very creditable and had no problems. Many deals worth of $50,000 US dollars to $100,000 US dollars were handled successfully and smoothly. However, when a million-dollar business came one day, Bob disappeared with $1 million worth of Bitcoin in 2016, knowing that the unit price of bitcoin was only over $450 USD. If you are Alice, how do you feel about that?
Compared to the example from few years ago, the latest case of OTC scam is even more astonishing! Hundreds of OTC traders have been deceived by more than 8,000 bitcoins, worth nearly $40 million USD.
Why Does Scam Occurs So Frequently?
In fact, in the past two years, this acquaintance -based OTC trading model is completely unsecured, every few months will come up with a large-scale fraud case, and the cost of fraud in crypto market is relatively low. Even if the case is reported to the police, the probability of recovering the loss is almost zero. This is quite regrettable. But the problem will come again.
Given so many cases, why are the OTC traders still insisting on adopting the original trading model without making any changes? We believe that the main reasons are as follows:
Most of the major OTC traders are in an “acquaintance” relationship, they are recommended by group chat members. Most people think that acquaintance can basically trust each other. Therefore, if you transfer money or coins directly to the other party, they will think that the risk is very low. In fact, most acquaintance are not reliable. In most cases, the victims did not believe that the other party would lie to them. Because they are familiar with each other, they have been doing business for such a long time.
2. Fluke mind:
When many people are clearly aware that if a car accident occurs at a speed of more than 60 kilometers per hour, the absence of a seat belt is often the difference between survival and death, but there are still many people who do not belt up. Because the probability of a car accident is quite low, most people will not consider the protective role of a seat belt. it was troublesome to buckle up. Therefore, “most of the “acquaintance” in daily OTC deals are safe”, so the traders will not consider to find escrow service to ensure the safety of an OTC deal.
3, Who pay fiat first:
The OTC traders still have some self-protective measures — “You pay fiat first” is one of them, because everyone will think, if I give you the coin first, if you run, I will lose; but if you give me fiat first, after all, the transfer of legal currency is under the protection of the law, and police can track the money. As a matter of fact, the “you pay fiat first” is not very effective for those who really plan to deceive;
4, The group owner guarantee:
In addition to the “You pay fiat first”, some OTC traders often rely on the group owner when trading, but there are many cases of the group owner scams. The scammer normally will manage an OTC group and foster a long-term trust from the group members; and one day, he will disappear with a large amount of assets.
5, There is no good-to-use escrow service:
In addition to the above reasons, there is still a reason that those OTC traders still insist on this unsafe deal model today. That is, the lack of trustable escrow service. Speaking of this, what they need is not an OTC platform. (OTC traders only do business with non-platform traders) For them, the OTC platforms are of high risk because of the money laundering issue. They need a “escrow service” that is as safe and convenient as “safety belt”. There was no such solution in the past for a long time, and this is why OTC has been popular for a few years, but everyone is still “not wearing a seat belt.”
Considering the above, Bitpie, as the best wallet for OTC traders, has carefully designed a service called “Instant Escrow” to help OTC traders to guarantee assets safety when doing business with acquaintance.
No need to worry about the risk of fraud. It’s easy to install a Bitpie on one’s phone, so it’s also easy to ask the counterparty to follow your advice on using Bitpie escrow service.
In order to lower the threshold, Bitpie has set a service fee at 0.01 % for each deal. In addition, during the first month, the service fee is free!
Finally, once again, please buckle up while driving; please use Bitpie “Instant Escrow” while OTC trading!