December 10, 2023

Circle sells OTC cryptocurrency exchange to Kraken due to lower spread

Circle sells OTC cryptocurrency exchange to Kraken due to lower spread

Circle finance company was forced to sell OTC (OTC) to Kraken) cryptocurrencies due to lower spreads.

During the unprecedented pomp of the Bitcoin exchange rate(BTC) in 2017, the spread reached 2%, which allowed market makers to earn unprecedented profits on OTC platforms. However, in 2019, the coin rate volatility decreased significantly compared to the indicators recorded in 2017 and 2018. As a result, the spread decreased to 0.1%, and the income of cryptocurrency whales from over-the-counter trading fell 20 times compared to the peak value.

In 2018, the volume of trade in digital assets atCircle Trade was $ 24 billion. Official data for 2019 has not yet been published, however, we can safely assume that the turnover has decreased significantly. In March, the company laid off 30 employees of the financial department (10% of the state), in addition, Ryan Seleim left the post of head of OTC trading in Hong Kong. From anonymous sources, it became known that in August the company began to search for a buyer for the OTC trading platform.

Circle co-founders Jeremy Allaire and Sean Nevillestated that they admire the work of Kraken management and are confident that the exchange's specialists will be able to provide a high level of service at Circle Trade. According to Neville, the crypto platform will provide stable platform growth, high liquidity and will guarantee the safety of users' financial assets. Kraken representatives confirmed the transaction, but did not name the value of the contract.