Trust & Transparency Issues
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OTC trading relies on private negotiations and unverifiable price quotes, making it difficult for traders to assess fair market value. Without clear oversight or on-chain verification, buyers and sellers are exposed to opaque pricing, unreliable counterparties, and the risk of unfavorable deals.
Off-chain price discovery – Buyers often overpay, and sellers struggle to determine fair value.
Manual OTC brokering – Trades require slow, informal negotiations, making execution inefficient.
Broker-negotiated offers – Prices are set without market-driven competition.
No preauthorizations or support from token issuers – Buyers and sellers must trust each other without validation.
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