FTX Meltdown Has Positive Effect On Crypto Space Despite Creating Chaos

Despite the chaos it created in the industry, the FTX meltdown has highlighted the underrated but reliable services offered by over-the-counter (OTC) crypto trading businesses.

The FTX debacle has shaken the global crypto space, triggered the filing for bankruptcy of multiple businesses, questioned the audit conducted on crypto businesses and planted a seed of doubt in investors' minds about entrusting their funds to centralized exchanges (CEX).

"Thanks to the fiasco of the FTX executives, our segment could see a significant influx of users even outside of our traditional market. We expect that 2023 could be the year of decentralization and accelerated development of decentralized apps," Nikita Zuborev, chief analyst of Russian OTC crypto exchange aggregator BestChange, told Cointelegraph in an interview.

According to the executive, unlike in Central Europe and North America, which have various ways of replenishing their balance using a bank card, countries in Eastern Europe and Central Asia rely only on exchangers as a convenient way to deal with crypto.

"If for the Central European countries and the countries of North America there are quite convenient ways of direct replenishment from a bank card, then for the countries of Eastern Europe and Central Asia there are no such options, and exchangers remain the only convenient way to work with cryptocurrency," Zuborev added.

"The role of OTC is sometimes underestimated amid the all-encompassing marketing of centralized exchanges," the executive also noted.

But what is OTC crypto trading?

This framework of financial technology simply means trading crypto assets directly between two parties in a closed trading market, in which, unlike an exchange, involved parties only have the private price and negotiate deals based on the amount they both agree on.

OTC trading can be conducted via agencies or people carrying out client transactions.

This alternative way of trading cryptocurrency is ideal for those who wish to avoid purchasing, selling or trading their crypto assets using mainstream and heavily regulated exchanges, as it is known to provide privacy, higher transaction limits and less exposure from market fluctuations.

OTC trading offers a lot of benefits, and among them are better asset prices. This is possible, as this kind of trading caters mainly to large trade volumes.

Unlike exchanges, OTC allows large trades at a single price and in one trade, providing convenience and cost efficiency for traders.

Moreover, while some exchanges limit trade volume per user per day, OTC trading does not, which means users can place an order of any volume.