I think this is part of the story!
But another part: there were 20 desks with identical services. Eventually customers tried all and not just the first one they found, and so the ones with worse pricing/service/etc. lost their customers and died off. twitter.com/IamNomad/statu
Conversation
Also spreads were ridiculously wide OTC in 2017-2018. 2019 brought spreads in through competition and decreased total industry profit (by saving customers money).
what is y estimate on how much volume in BTC is traded off-exchange / OTC vs exchange ratiowise?
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Meh I'd guess roughly:
$500m/day OTC
$3b/day spot exchange
$6b/day futures exchange
but super uncertain about the OTC number! There could be large volume we never see.
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Mvis brought transparency/ closed spreads up and a lot of desks closed as a consequence of competition