The cryptocurrency market tends to get spooked when large trades occur. However, one new ICO hopes to change that with its latest blockchain technology.
According to Coindesk, Republic Protocol completed an ICO for its token called REN to the tune of $30.5 million. The goal is to allow for huge crypto trades with less of a downside.
Taiyang Zhang, CEO of Republic Protocol told Coindesk, “One of the biggest problems is there is a huge price slippage with any of these cryptocurrencies, especially when you are trying to trade large amounts.”
REN would allow for a trustless alternative system for crypto trading. Market volatility causes issues for whale traders in that the rest of the market follows causing prices to steeply drop, so of course, a solution to that is beneficial for the market as a whole.
The new platform will allow traders to send specific detailed parameters of a trade to the dark pool. The dark pool works to find the best trades based on a trader’s parameters, or it will decline the trade if it’s not possible. All of this will happen without people seeing what a trader is willing to do.
Zhang said, ”I think what’s really important is it’s provable that no one can see inside this dark pool at all. There’s no information asymmetry. Everyone gets the same information.Where a dark pool could be very handy is, instead of negotiating prices or even trusting OTC (over-the-counter) brokers, it’s a way to place an order trustlessly.”
Plans for the platform to go live in Q3 of 2018. Could you see using the dark pool for large trades?