Winklevoss Bros’ Gemini Exchange Launches Daily Bitcoin Auctions

By September 21, 2016Bitcoin Business

Gemini Trust Co., the New York-based digital currency exchange founded by the Winklevoss Brothers has begun the first-ever daily bitcoin auction in a bid to facilitate trading with higher volumes at lower costs with better prices. Starting today, the bitcoin ecosystem will see an exchange adopt a daily bitcoin auction at 4 P.M New York time, every day including holidays and weekends. In an announcement , Gemini said it ushered in its daily bitcoin auction to remedy the “incredibly inefficient” method of bitcoin trading today, wherein exchanges are missing mechanisms that are otherwise commonplace in financial marketplaces. Traditional asset exchanges like Nasdaq and the New York Stock Exchange see daily auctions and there are advantages to the mechanism when ported to bitcoin trading, according to Gemini. In quotes reported by Reuters from New York, Gemini CEO Tyler Winklevoss said: Auctions create greater price discovery and liquidity, resulting in a very meaningful final auction price. If you were building a securities exchange today, an auction would be a core feature. Bitcoin Auctions Gemini users will be able to enter Auction-Only Market and Auction-Only Limit Orders to place bids for buying and selling bitcoin at 5 P.M. Eastern Time for the next day’s auction at 4 P.M. The orders will be filled at the final auction price at 4 P.M ET on the day of the auction. This number is determined by finding the price at which the greatest aggregate buy demand and aggregate sell demand from all participating orders can be filled. ‘Indicative auction prices’ are broadcasted from 3:50 P.PM ET every day over Gemini’s market data API and its website. Every minute until 3:59 P.M., a new price is calculated by simulating the auction process for the order books during that minute. In essence, participants have 9 minutes every […]

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