Bulk trading Bitcoin is about to get a lot easier. Ren Exchange (RenEx) is building a decentralized dark pool using the Republic Protocol to support bulk orders of BTC. Dark pools are mostly used in the traditional investment world, by institutional investors to place large orders on stocks, bonds, and funds without interfering with the market. The same principles are applied to BTC markets. RenEx will provide whales with a new place to trade large sums of BTC without harming market sentiment and or being accused of market manipulation. While not all whales will use dark pools for large trades, these pools offer greater levels of liquidity and enable large orders to be filled in a fast time.
Reduction of Market Manipulation
During previous bull runs, whales have been blamed for market manipulation. Market manipulation can easily occur when a whale – or group of whales – decide to either buy up or float a large number of BTC on exchanges, prompting other traders to follow suit. The whales who started the market movement will then wait for their target price – whether that’s higher to sell or lower to buy – then they will execute their trades.
Dark pools will help whales who genuinely want to quickly buy or sell large sums of BTC without impacting the markets. Crypto dark pools are generally only offered to whales and therefore have minimum deposit levels. There are still some whales out there who will manipulate the markets, it is hoped that a dark pool will prevent market swings from honest whales. If this effect works, the SEC might be more inclined to approve a BTC ETF – especially given the fact that its favorite reason for declining them is “market manipulation fears.”
Built on Top of the Republic Protocol
The new RenEx is going to be built on top of the Republic Protocol. The Republic Protocol was designed to support dark pools for trading, so existing exchanges can use it to build their own dark pools and simply import them into their existing platforms. The RenEx dark pool is actually being built in-house by the Republic Protocol and it will be the first dark pool built using the protocol.
Teaming up with Wyre
Wyre will essentially be responsible for the onboarding of new customers, the entire know your customer process, and providing liquidity to the market. This partnership will allow RenEx to showcase its ability and trading power to large traders. Wyre is best known for its OTC brokerage of digital assets, as it has traded more than $3.5 billion worth of digital assets so far. This vast sum proves that Wyre is the perfect liquidity partner for the new RenEx exchange.
There is a raft of exchanges opening up or adding new features right now. RenEx promises to offer specialized trading services to an important segment of BTC traders. This new service could potentially help to curb the extreme volatility in BTC – making it ideal for day-to-day use. It isn’t due to go live for a few more months, but when it does it will help bring a more civilized approach to crypto trading.