The first ASIC RFQ platform has been introduced by Luxor with the aim of maximizing market access and transparency.
The first request-for-quote (RFQ) platform for buying and selling Bitcoin mining hardware has been launched by Luxor Technologies, a provider of full-stack Bitcoin mining software and services.
The press release sent to Bitcoin Magazine describes what an RFQ platform is, saying “Users can place orders (requests) for particular goods on an RFQ marketplace. Buyers and sellers can both submit requests for ASICs for mining bitcoin on Luxor’s double-sided RFQ.”
The idea is that it will create a more liquid and easy to use marketplace for ASICs — specialized machines specifically built to mine bitcoin. According to the release, “The secondary market’s liquidity is improved and price discovery is increased by ASIC traders using an open-bid system to submit requests and directly negotiate prices.”
Before the emergence of this market, ASIC traders had to contend with a disorganized and opaque over-the-counter market. Theoretically, this system will increase market transparency by facilitating easier access and more accurate market pricing. Market makers on the platform will primarily be ASIC brokers, who can use the platform to increase their deal flow and facilitate more transactions.
“We built Luxor RFQ because we saw the need for a unified platform for trading Bitcoin mining hardware,” Lauren Lin, the operations manager at Luxor, made a statement. “In the past, mining equipment was purchased and sold through a variety of different channels. Now that they can see offers, listings, and settlement prices all in one place, pricing transparency has improved, and the process of buying mining equipment has been sped up.”
The RFQ platform will give buyers a great deal of flexibility by letting them specify orders by factors like quantity, condition, model type, location, and more. Sellers will also be able to mix and match models from various manufacturers in their orders in addition to the above. Selling and brokering will be made easier by the platform’s auction-style bidding process.
Luxor states that it is committed to transparency, saying that “Market makers can conduct larger, more profitable transactions thanks to transparent platform fees that are volume-based.”.
