The world’s one of the largest blockchain investment banks has posted a quarterly profit of US $10.4 million (INR 78 crores) on its liquidity provider business. EGW Capital forayed into liquidity providing and market-making business in the last quarter of 2020 and has gained significant ground by keeping the crypto markets liquid through its automated trading systems. The company has not disclosed on which exchanges it provided its services. However, it is assumed that Binance, OKEx, PanCake Swap, and Uniswap are the most prominent platform on which EGW Capital provides liquidity.
The company has invested over the US $55 million sourced from investors based in Dubai and Singapore. The automated trading architecture of the company is based in Dubai. The liquidity provider business is the most profitable business division of the company, followed by investment banking specializing in taking the businesses public on the crypto exchanges through ICO and IEO.
EGW Capital traded US $4.6 billion (INR 34,571 crores) in crypto in the last quarter. The significant rise in the price of Bitcoin and Ethereum pushed the trading volumes of EGW Capital.
The liquidity providers are responsible for making the crypto market liquid as they provide both buy and sell orders. The market makers usually earn the price difference between buyer and seller bids. In the world of crypto, liquidity providers make 0.25% for every successful trade.
“We are delighted to announce that our liquidity provider business is scaling new highs. We are committed to making crypto markets more and more liquid. Cryptocurrency has started to be accepted as one of the best alternative investment options, and it provides tremendous investment opportunities to the young and dynamic investor class. The liquidity provider business has proved to be most profitable in the days of painful lockdown,” said Rahul Kumar, CEO, EGW Capital.
EGW Capital is proposing ICO for EGW tokens, raising US $10 million in pre-ICO sales in the next few months. The EGW tokens will be listed on WazirX and Gate.io. The EGW tokens currently trade at US $0.09 with a US $1.22 billion market cap.
EGW tokens recently migrated to Binance Chain (BEP20) and will soon be initiating a swap for its existing token holders. It is being assumed that EGW may offer an impressive bonus to the investors in the pre-ICO sale. EGW Capital is also proposing to set up its own crypto nation on an island in Belize.