What’s The Best Price For A Bitcoin? Winklevoss Exchange Gemini Aims To Find Out With Daily Auction

In the nascent bitcoin trading industry, it’s hard to settle on one price each day. Because it’s a relatively thinly traded market, and that is compounded by the fact that cryptocurrencies are traded 24/7, exchanges all over the globe vary widely when it comes to how much a single bitcoin is worth, with exchanges in China, where volumes are highest, typically showing higher prices.
Cryptocurrency exchange Gemini, founded by investors and former Olympians Tyler and Cameron Winklevoss, on Wednesday launches a new feature that could help buyers and sellers better find the true price of a bitcoin on any given day.
The New York-based exchange will hold a 10-minute BTC/USD auction at 4pm Eastern Time every day. The auction will concentrate liquidity into a short time frame, settle on the price that will allow the greatest amount of buy and sell orders to be fulfilled, and result in an official end-of-day price that can be used for, say, accounting or calculating returns.
‘Daily auctions are common features in mature electronic marketplaces because they provide greater price discovery, liquidity and transparency. In launching our daily auction feature we are trying to bring the same modern trading mechanisms to the Bitcoin market,’ wrote Tyler Winklevoss, Gemini chief executive officer, in an email. Auctions are common in other equities markets and the markets of other asset classes, and Gemini will employ technology similar to that used by traditional exchanges such as Nasdaq, the New York Stock Exchange and Bats Global Markets.

This post was published at Forbes on SEP 21, 2016 @.

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