According to Lmax CEO, Big Money crypto dealers are still optimistic about BTC and ETH

According to Lmax CEO, Big Money crypto dealers are still optimistic about BTC and ETH

The institutional crypto exchange LMAX Digital has just recorded its biggest trading day of the year-heated by the optimistic mood among the top dealers in the world.

according to CEO of the Lmax Group David Merker seems to be relatively intact, despite the chaos that caused the chaos to collect the algorithmic Stablecoin her sister token Luna was triggered.

Mercer announced that Blockworks had been digitally flowed through LMAX last Thursday.

"My institutions acted more than ever," said Mercer. "They are the largest self -trade companies in the world, in Chicago, New York, Amsterdam and London. Your conviction of Bitcoin remains unchanged, your belief in Ethereum seems to be."

Mercer refused to indicate the companies in question. But names like Citadel Securities, Jump Trading and Cumberland from DRW fit into the profile.

As far as the size is concerned, LMAX digitally recorded an average of $ 1.5 billion a day last year, with the top day reaching $ 6.6 billion on May 19, when Bitcoin collapsed from $ 59,000 to $ 34,600.

In any case, Mercer said that uncertainty and fear drove the Volumina of Lmax digitally. Mercer saw that institutions "flee to quality" because its platform "does not deal with some of the more experimental coins".

Last Thursday, both Bitcoin and Ether-the largest cryptocurrencies after market capitalization-rose by about 6 %during the intraday trade, although some native tokens of crypto bonds are better off.

Mercer believes that Terra's demise has a hidden silver -stripe on the horizon.

"Maybe I have a slightly different view than most people," said Mercer. "I mean people use crypto in a very wide frame. Bitcoin is half the market for me because it is very stable and robust as a currency.

On the other hand, Mercer described the decentralized financing (Defi) as an ecosystem of scientific experiments.

"Stöpsel in general, especially when they are faulty," said Mercer, referring to sudden devaluations to numerous currencies in the course of history, including the successful "attack" by George Soros on the British pound in 1992 when the Euro-Swiss franc collapsed in 2015 and the Argentine Peso 2002.

Nevertheless, Mercer would not call algorithmic stable coins like Terra as stupid ideas. It was a good idea that was supported by some very great minds, he argued, "but it didn't work and it was disturbed by the normal market dynamics."

The case for secured (and tested) stable coins

lmax digitally combines USD with USD in an order book and winds the margin trade in the stable coin.

"Don't get me wrong, 97 % of my trade is probably crypto-to-fiat," said Mercer. "But some customers come and say: 'I see, I have this USDC. It is easier if it is in USDC instead of in US dollars.' This is ok-I accept USDC and can transfer it immediately if these order books are the same."

But why not usdt? Mercer quotes circle certificates about the accounting giant Grant Thornton, who says that each USDC is covered by a US dollar or a US treasury. This does not make USDC a "particularly sexy stable coin," said Mercer, but it was secure, liquid and "one is one".

The well-documented conservation of USDC enables LMAX digital to safely bring its fiat dollar order books together with its USDC books.

"We do not offer Tether today for a simple reason: this one-to-one ratio is not guaranteed," said Mercer.

tether constantly assures the market that each USDT is properly covered by a mixture of money market deposits, corporate bonds and the like, but Mercer has no full confidence in the reports that Tether creates.

The LMAX boss said Tether needed more transparency before he would accept USt.

"I'm a simple guy," he said. "I work in traditional markets. Tether tells me that 70 billion USDT is in circulation? Just show me the portfolio. I don't understand why that can't happen. I only want $ 1."

as such, Mercer said that he would be happy to accept CBDCs or digital central bank currencies - digital Fiat, which is issued by central banks. Fiat is too chunky for cryptoma markets, and he sees the reduction of friction in the ecosystem as the primary application for stable coins and CBDCs and says: "It should oil the bikes."

Bullish regarding the future of crypto

Apart from the tricky stable coins, Mercer is remarkably optimistic about the future of crypto, although the trade in digital assets is a small percentage of the income of the LMAX group.

Six exchanges fall under the roof of the LMAX group. LMAX Digital, the institutional cryptoplate form, made 15 % of the total volume of LMAX last year, but 40 % of sales.

Overall, the group recorded income of $ 110 million from a foreign currency volume of around 6 trillion US dollars, with Krypto contributing around $ 550 billion.

by 2025 Mercer believes that it will be possible to act Bitcoin against everything: gold, the S&P, Euro, the Ftse, Nickel and Aluminum, "just as you can do dollars against everything".

He also predicted that crypto would overtake gold within the decade. Krypto is currently worth around $ 1.5 trillion. Gold is between $ 10 and $ 12 trillion.

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The article Big Money Crypto Traders Still Bullish on Btc and Eth, Says Lmax CEO is not a financial advice.