Trustlessbank ❤ A better way for Crypto OTC and Large Volume Trading
TrustlessBank is a revolutionary cross-chain cryptocurrency wallet, OTC infrastructure that supports trustless and on-chain swap without an intermediary to escrow the client fund. It is designed for normal users or wholesale market makers, OTC, exchanges, or token issuers who want to do peer to peer trading without giving their coins (private keys) to some trusted authorities which could potentially be the fraud operators.
Why you need this?
When it comes to wholesales trading, and large volume trading (such as selling 1,000 Bitcoins), TRUST becomes a vital criteria whether both sides of traders could trust the ‘intermediary exchange/OTC’ or not. Since they need to deposit their cryptocurrency to the middlemen first, fraud OTC could gone with the wind any time. Finally, some traders are recommended to do the face-to-face or peer-to-peer trading; but it is quite inconvenient to find a counterparty, and dangerous for both sides to lock themselves in a private OTC safes-house since ‘who has to send the money first’ become a BIG issue.
The problem of whales
These mysterious large crypto orders are hardly transacted on the retail crypto exchanges since it could drive the price up or down drastically. Normally, it is block-trade on the wholesale OTC market, or spread the order around various crypto OTCs and exchanges. However, most OTCs are fragmented all over each geographical location since they have their own liquidity providers, and they were tied with certain fiat currencies. So, trading a large volume is not easy today. It is very time-consuming even for the OTC themselves.
Therefore to scale the ‘crypto wholesale market’ to become the market leader on this category deem to be quite impossible since no one trusts each other when it comes to a large amount of money. We need a better way..
How big it is?
Today the large volume trading market is accounted for 10–20% of the cryptocurrency which equals to $10-$20 billion USD worth of Bitcoin daily. The whale movements play an important role to drive the industry. Most of these whales are early adopters, miners, funds, and OTC/exchanges themselves.
At the same time, by using the Coinbase Pro exchange, a skillful trader can increase the limits up to $25,000,000 per day. Binance could also extend your daily limit upon personal request. To sum up, both major exchanges might allow you to trade up to $25 million per day. However, you will still have to set this limits by interacting directly with the exchanges.[Cointelegraph]
For example, Chainalysis, a provider of cryptoasset tracking tools to companies and law enforcement, [noted] 50 transactions involving a total of 50,500 Bitcoins stemming from awhale’swalletmoved between Aug. 23 and 30. From [Cryptoslate]
While the over-the-counter market for Bitcoin is currently roughly three times larger than the exchange market, things should change to even bigger when a myriad of institutional investors enter the market during the bull market.
The Problem of crypto OTC
As we showed the potential of the OTC/large volume market, in contrast, the problem of scammers and settlement risks still become a big issue when you want to trade anonymously. The forums and topics on Reddit are full of [sad stories] about scammers taking advantage of naive traders, [providing] fake videos of the amounts they have, making false agreements or using other phishing techniques. In particular, there are [many warnings] about fraudsters on LocalBitcoins.
Moreover, most OTC brokers do not yet provide a trusted custody solution, which would mitigate settlement and operational risk. It is for this reason that many traders use escrow services or bank transactions to be able to return the money if the deal fails.
The team at TrustlessBank thinks this is a huge problem and we started researching on this topic from the ground up since two years ago. Finally, we build a set of decentralized technology that can help buyers and sellers do the peer-to-peer trading in different cryptos while nobody pretends to be trusted.
The Solution we build —
1. Non-custodial multi-asset crypto wallet (Do not keep user’s private keys, no deposit to the exchange needed, and support major cryptocurrencies)
2. The Improved Cross-chain protocol (Which is crypto-agnostic and can support fiat currencies in the future)
3. Cross-chain DEX/OTC Terminal (Not limited to Ethereum or a certain blockchain; we build the DEX on a permissioned blockchain called Quorum which is faster and no need to pay an unpredictable gas to a single network.
4. Support Layer2 (Bitcoin Lightning, Ethereum Plasma) — We are the first wallet that show Bitcoin Lightning to Libra Swaps on Testnet.
5. Will support many Stable coin vendors. And we love OTCs, whale, liquidity providers. ❤
Our team at TrustlessBank wanted to create a better way for large volume crypto trading. Want to learn more, please contact us.
We are on fundraising. If you are a crypto investor, Please fill the form below, we will be happy to share more info. :)
You can follow us on these channels ✌️👌
References:
[How to Trade Big Crypto Volumes, Explained | Cointelegraph](https://cointelegraph.com/explained/how-to-trade-big-crypto-volumes-explained)
[Research: Binance and Huobi Received Over 52% of Total $2.8B Illicit BTC in 2019](https://cointelegraph.com/news/research-binance-and-huobi-received-over-52-of-total-28b-illicit-btc-in-2019)
[Liquidity Metric To Combat “Volume Inflation” Problem — CoinMarketCap](https://blog.coinmarketcap.com/2019/11/11/coinmarketcap-launches-new-liquidity-metric/?utm_source=coinmarketcap&utm_medium=alert&utm_content=liquidity&utm_campaign=general&utm_term=)
[Report: Crypto OTC Market Three Times Larger Than Exchange Market | CryptoSlate](https://cryptoslate.com/crypto-otc-market-three-times-larger-than-exchange-market/)
[Crypto OTC Trading, Explained | Cointelegraph](https://cointelegraph.com/explained/crypto-otc-trading-explained)
