The Winklevoss Gemini Bitcoin Exchange daily auction went live this week.
This article highlights the benefits of their daily auction for Bitcoin to fill large orders without moving the price. It’s a place whales can feed in peace.
How Does Auction Work?
All eligible orders will be filled at the final auction price at 4:00 p.m. ET. The final auction price of each Auction is determined by finding the price at which the greatest aggregate buy demand and aggregate sell demand from all participating orders can be filled (i.e., the price at which the largest quantity can trade). The mechanics of this auction are very similar to the closing auction (or closing “cross”) on the major electronic U.S. stock exchanges (e.g., Nasdaq, NYSE Arca, Bats). For a more detailed discussion, please see Marketplace.
Buying large quantities of Bitcoin is often done off exchange but it requires connections. I am reading this auction as a way Whales can buy/sell Bitcoin without price slippage in a controlled and supposedly trusted environment.
It’s another feather in Bitcoin’s cap and potentially opens Bitcoin up to VERY deep pockets.
Side note: I hope they did their homework on security because this site will be a big target.If you enjoy the content at iBankCoin, please follow us on Twitter