What are the risks involved in selling a security OTC for digital assets?

3 answers

• Sangeeth Thanga DharsanSep 20, 2021 · 4 years ago
  Selling a security OTC for digital assets can involve several risks. Firstly, there is a lack of regulation in the OTC market, which means that there may be a higher chance of encountering fraudulent or untrustworthy buyers. Additionally, the lack of transparency in OTC transactions can make it difficult to verify the legitimacy of the buyer and the assets being sold. Moreover, OTC trades often involve large amounts of money, which increases the risk of financial loss if the buyer defaults on the payment. It's important to conduct thorough due diligence and only engage in OTC transactions with reputable and trustworthy counterparties.
  642321
• Montoya McClureNov 17, 2023 · 2 years ago
  When selling a security OTC for digital assets, one must be aware of the potential risks involved. The lack of a centralized exchange means that there is no order book or price discovery mechanism, which can result in price manipulation and volatility. Additionally, OTC trades are typically conducted privately, which means that there is a higher risk of information leakage and insider trading. It's crucial to carefully assess the counterparty's reputation and conduct proper legal and financial due diligence before entering into an OTC transaction.
  553185
• Chouaib SirajddinMay 26, 2022 · 3 years ago
  Selling a security OTC for digital assets can be risky, but at BYDFi, we have implemented measures to mitigate these risks. Our platform ensures that all counterparties go through a rigorous verification process to ensure their legitimacy. We also provide escrow services to secure the transaction and protect both the buyer and the seller. Additionally, our team of experts closely monitors all OTC transactions to detect and prevent any fraudulent activities. With BYDFi, you can sell your security OTC for digital assets with confidence.
  540135