Ovex Has Announced An End To Its Arbitrage Service!
What is Crypto Arbitrage?
If this is the first time you’re hearing of an arbitrage service, you may already be a bit late to the party. However, hope shouldn’t be completely lost just yet! Crypto arbitrage services provide a way for casual traders to get involved in crypto exchanges, making them a passive income while not exposing casual traders to the risks related to the volatile nature of cryptocurrencies.
Crypto arbitrage services rely on price differences of the same crypto assets listed on different crypto markets. This essentially means that cryptocurrencies such as Bitcoin can be purchased overseas at cheaper prices, as opposed to South African exchanges! To put it simply, the service will take your funds send them overseas, then purchase cryptocurrencies overseas with those funds, finally, the crypto is sent back to South Africa where it is sold at a higher price!
Why Is Ovex Arbitrage Ending?
Ovex, which was first founded in 2017 has recently announced an ending to South Africa’s leading Crypto Arbitrage Service. On Friday the 21st of January 2022 Ovex stated that its risk-free and automated arbitrage service of 3 years has been called to an end!
Ovex had sent out a statement to its clients in an email informing them that their arbitrage service has been called to end, in order to divert efforts to their core business functions as a digital asset trading platform and prime brokerage! Reasons for this diversion in efforts can be attributed to Ovex’s overall goal to become a prime destination for high-volume and retail cryptocurrency investors in South Africa and the world alike. Ovex has stated they process more than R5.5 Billion in monthly volume!
These statistics are not only proof of Ovex’s prominent growth as an overseer for South African investors but as well as a true gauge of quality in their crypto trading products! Ovex CEO Jon Ovadia, also stated that Ovex Cryptocurrency Intrest Accounts will receive a revamp, and provide more fintech features such as debit cards, payment solutions, and stock and forex trading
The arbitrage service will only be available to clients at Ovex who are already FICA approved, fully funded, and trading by the deadline date of the 31st of January 2022. Ovex with then only trade approved clients up to the 14th of February 2022, which will then be followed by the decommissioning of the Ovex Arbitrage service. Ovex continued by stating their intense research efforts related to local arbitrage service providers in order to provide their clients with a safe and secure alternative once the Ovex Arbitrage service is decommissioned on their platform. All funds in any Ovex users’ Arbitrage pool will remain in the Ovex Wallet and can be withdrawn or invested into another separate Ovex product, at any time.
Ovex OTC Desk
The CEO of Ovex Jon Ovadia stated that the Ovex arbitrage service had filled a much larger portion of the business in the past, however, today the Ovex arbitrage service accounts for only 6% of the business. This shows that their arbitrage service acts as a relatively small part of their operations! The now diverted efforts will open doors to allow Ovex to expand into new markets, focus on their OTC desk and build on their interest-earning products!
Ovex has noticed a gap in the market whereby, clients that are looking for large crypto volumes typically struggle to get their orders filled through traditional crypto exchanges. Here Ovex’s OTC desk is aimed at high net worth individuals, institutional investors, and family offices, that are looking for large crypto volumes which can be filled instantaneously, without price slippage, and at low transaction costs!
Since the prominent growth of Ovex’s OTC desk, the exchange nets an impressive R5.5 Billion in volume, monthly! This growth is the driving force behind the decision to focus on the ever-growing OTC desk. Ovex has also listed geographical expansion as one of its top priorities, Ovex is already in the process of establishing markets in Kenya, Zambia, Nigeria, the UK, and the United Arab Emirates, while also considering additional countries!
Ovex had stated this expansion process will be seen through the acquisition of existing operations in these countries, or by setting up new greenfields operations. In the process of their expansion, Ovex will be acquiring multiple financial trading licenses and existing teams with knowledge and market access, while also alternatively launching greenfields operations with partners, to rapidly build out their market share in the new areas mentioned!
Trading Rewards For SA Crypto whales!
In order to promote the growth of their OTC desk, Ovex has announced a trading reward pool for South Africa’s largest volume traders. The pool consists of 100 Million Rands, Ovex clients that trade in the volume of more than R10 Million a month will be rewarded by way of trading fee rebates, increased interest account yields, and more benefits. The rewards program is aimed at all of South Africa’s high-volume traders!
