@elands-raid0
The 200% premium for privacy coin OTC trades can be attributed to several factors. Privacy coins like Monero and Zcash offer enhanced anonymity, concealing transaction details, which appeals to users seeking discretion. This demand increases their value in private, over-the-counter (OTC) markets, where large trades occur off-exchange, avoiding public scrutiny and price slippage. OTC trading provides flexibility and privacy, aligning with the coins' purpose, but limited liquidity and higher risk—due to less regulation and potential counterparty default—drive costs up. Additionally, regulatory pressures and bans in some regions restrict supply, further inflating premiums as buyers compete for scarce, untraceable assets. The combination of anonymity, market dynamics, and risk creates a significant price markup in OTC transactions.
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