OVEX, the company that popularised crypto arbitrage in SA, has announced that it will exit this market at the end of January 2022 to focus on a multi-country expansion programme that will bring its white glove over-the-counter (OTC) service to several new countries in Africa.
“Crypto arbitrage used to be a much larger part of our business, and we did more than anyone else to educate South Africans in the opportunities presented by price differences in cryptos between different markets. We also automated and streamlined this service to make it as seamless and smooth as possible,” says OVEX CEO Jon Ovadia.
“Today cryptocurrency arbitrage accounts for just 6% of our business and is therefore a relatively small part of our operations. We therefore made a strategic decision to exit this market to focus on our expansion into new markets, and on our OTC desk and building our interest-earning products.”
OVEX’s OTC desk is aimed principally at high-net-worth individuals (HNWIs), family offices and institutional investors looking for large crypto volumes that can be filled instantly, without price slippage and at low transaction costs. Clients looking for large crypto volumes typically struggle to get their orders filled through traditional crypto exchanges, a gap in the market occupied by OVEX.
Ovadia says the exchange is beefing up its popular Cryptocurrency Interest Accounts with new fintech offerings such as debit cards, payment solutions and stock and forex trading.
OVEX’s crypto arbitrage clients need not fear that they will lose the opportunity to continue making profits. “Even though we have decided to move away from the arbitrage service, it has been and continues to be an incredible opportunity for a low-risk trade. We have done extensive due diligence on some local arbitrage service providers to ensure our clients have a safe and secure alternative once the product is decommissioned on the OVEX platform,” says Ovadia.
OVEX will close its crypto arbitrage service on January 31, 2022 and conclude all open trades by February 14, 2022.
The company says the OVEX Arbitrage users’ pool remains in secure custody in the OVEX wallet and can be withdrawn at any point, or alternatively invested in other OVEX products such as US dollar stablecoin interest accounts yielding over 12% for the likes of USD Tether. Alternatively, clients can convert their arbitrage funds into other crypto assets.
Huge growth in OTC trade
Ovadia says OVEX has witnessed huge growth in its OTC and retail trading service.
The exchange does a remarkable R5.5 billion in volume monthly, which prompted the decision to exit crypto arbitrage and focus on the fast-growing OTC market
Geographical expansion is also high on the list of priorities for 2022. New markets in the process of being established are Kenya, Zambia, Nigeria, the UK, and the United Arab Emirates (UAE). Other markets are also under consideration.
The aim is to build an international crypto and fintech operation offering a range of products that will compete with traditional financial services companies.
“We are expanding geographically through the acquisition of existing operations in these countries, or by setting up entirely greenfields operations,” says Ovadia. “In the process of our expansion we will be acquiring several financial trading licences and existing teams with knowledge and market access, so we are able to hit the ground running. In other cases, we will be launching greenfields operations, often with partners, to rapidly build out our market share in these new areas.”
R100m trading rewards for crypto whales
To accelerate its expansion among crypto whales, OVEX has launched a R100 million trading rewards pool for SA’s largest volume traders. The pool will be used to reward OVEX clients trading more than R10 million a month by way of trading fee rebates, increased interest account yields and other benefits. The rewards programme is aimed at high volume traders such as HNWIs, asset managers, and brokers in need of a one-stop shop for all their investing needs. Trade volume with peace of mind with OVEX’s white glove service.
Brought to you by OVEX.
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