Block Trade
A "block trade" in crypto refers to a large trade of cryptocurrency assets that occurs off the open market, typically involving a significant volume of tokens or coins. Block trades are executed directly between two parties, often institutional investors or high-net-worth individuals, and are negotiated privately rather than through public exchanges.
These trades are usually conducted outside of regular trading hours and are used to avoid causing significant price fluctuations in the market. Block trades are beneficial for both parties involved as they allow for the execution of large transactions without impacting market prices.
Examples of block trades in crypto include:
- Institutional investors purchasing a large amount of Bitcoin from a cryptocurrency fund.
- A high-net-worth individual selling a substantial portion of Ethereum to another wealthy investor.
- A blockchain project selling a significant amount of its native tokens to a strategic partner or investor.
Cases of block trades often involve parties with substantial capital looking to acquire or dispose of large amounts of cryptocurrency assets without affecting market prices. These trades are conducted privately and may involve negotiated terms and conditions between the parties involved.