OTC market. What it is and for whom
By Volodymyr Prysiazhniuk 274 23 Feb 2023
OTC is a trading platform that hosts offers for trading crypto resources (exchange accounts, allocations for the coin purchase, WhiteList for the NFTs purchase, etc.).
OTC market. What and who for
Two main reasons for a person to be on the OTC market:
- WTB - want to buy
- WTS - want to sell
For example, we will write WTB Overline 500$ WL, then people interested in selling this project's WhiteList will write to us.
Why is it being sold?
You might think: "Why are they selling the WhiteList of potentially profitable NFT collections or allocations for another coin? You can earn money on this."
This is how they earn. I can get a free WhiteList for being active on Discord and sell it for $200 instead of investing $500 in NFTs and expecting a profit. The situation is similar to the allocation: if I do not have the funds to purchase the coin in full, it would be wiser to sell the allocation and make my profit from it.
To fulfill the conditions of financial promotions, OTC often allows users to purchase verified crypto exchange accounts.
Is the price fair?
The price for each WhiteList or allocation depends on the following factors:
- Demand. It is one of the key factors that affect price. The higher the demand, the higher the price.
- Offer. The more difficult it is to create an offer, the more expensive the asset.
- Blockchain. WL on the ETH network will be more expensive than WL on Polygon.
- Execution of RoadMap. Each project has its own development path. If the community likes the development plan and its implementation, the WL price will increase.
- Information background. Any bad news related to the project will negatively affect the WL price.
How to protect yourself?
Each OTC market has a responsible person who is an independent third party ensuring the transaction's integrity. The third party receives a commission based on the asset's price.
But do not forget to conduct an independent analysis and verification of each acquired asset.
OTC is an additional tool that allows you to sell or buy almost any crypto asset or instrument. The site has pros and cons, but most use OTC as a quick way to purchase WL without spending time getting it.