Aminhossein “Amin” Rad runs an over-the-counter trading desk in Dubai, United Arab Emirates. Searching for a business after dropping out of university, he started to style himself as a Bitcoin broker in 2016. Starting with his first deal after five months of wading through scammers and tire-kickers, Rad went on to found Crypto Desk, a business-to-business exchange that now deals millions of dollars of private crypto transactions among its 2,500 clients every day.
But why do people use OTC desks when centralized exchanges offer lower fees, and what dangers come with the business? Rad spills the beans on a sector of the crypto world that flies under the radar for most retail traders.
The devil is in the deal-tails
The crypto asset industry has its share of rampant unethical behavior that is encouraged by anonymity and a lack of regulation or enforcement. Having come across all types of scams over his years in the industry, Rad differentiates between what he calls soft scams and hard scams. The former are things such as indirect and impersonal rug-pulls, while the latter are more direct and targeted.
He says most buyers see “shitcoins and memecoins as a joke or a game,” and relatively few experience much emotional trauma when the game ends and prices take a nosedive. However, getting scammed is far from a joke when a serious investor is looking to invest a portion of their hard-earned wealth into the crypto market or cashing out to buy real estate.
“The psychological effects of hard scams are much more…