Over the last few months we have had a few SEED holders that have wanted to make large purchases of SEED. The benefit of doing this is that a buyer can lock in a price for the entire volume of SEED that will provide better value than if they were to buy it all on the open market.
In the interest of transparency and fairness for both sides we have decided to outline our process for OTC transaction publically below:
Step 1 Initiating OTC Inquiry:
To initiate an OTC trade please go to www.parsl.co/otc and fill out the form provided.
Step 2: Obtaining Price
Price will be determined by a combination of two methods. This will be non-negotiable so as to remain consistent and fair to both parties before and after the trade.
The first method will approximate the price of SEED that the market would shift up to if the amount of EOS specified in the trade was spent on the open market on Newdex.io or whichever Exchange is achieving the highest volume at the time. This is called the Open Achieved Market Price (OAMP).
So the first method’s price would be determined by the average of the Current Market Price (CMP) and the OAMP.
Eg. ( OAMP+CMP ) / 2 = Method 1 Price (M1P)
e.g. if a buyer wanted to spend 500 EOS based on the market on 26 June UTC +10 it would work as shown below;
.000220 + .000080 = .000150
The second method will be by determining the 100 Moving Average (100MA) on a 4 HR time frame (this will extend to the daily time frame once we have a more stable market with more data).
For the example above, this would be .000100 as shown below.
The average of the 2 figures (M1P and 100MA) will be the final OTC sale price that will be sent in an email of offer with a deadline for acceptance. If the offer is not accepted by this deadline the offer will be void and a new application for a new offer of price will need to be submitted.
(M1P + 100MA) / 2 = ( .000150 + .000100 ) / 2 = .000125
.000125 will be the be the OTC price of offer in this example.