Aplo & Damex: Revolutionizing Crypto Liquidation

Feb 14, 2024


Damex is a Gibraltar-based crypto payment company founded in 2017. Specializing in offramp solutions and OTC Crypto Brokerage, Damex faced challenges liquidating illiquid tokens. Seeking a strategic partner, they turned to Aplo. In a notable success, Aplo efficiently liquidated a substantial token position (300-500 range) within 270 days, overcoming the hurdle of scarce liquidity. This impressive feat, 25 times faster than average, showcased Aplo's trading desk prowess in executing complex trades in unstable markets. Damex's collaboration with Aplo not only addressed regulatory needs but also delivered exceptional results, proving the efficacy of this strategic partnership.

Photo by Sigmund / Unsplash

Damex’s story

Founded in 2017, Damex is a Gibraltar-based cryptocurrency payment company established by Sam Buxton, Thomas Johnson, Jeremy King, Scott McKim, and Philip Vasquez. The company specializes in offering on and offramp solutions for entities that accept cryptocurrency payments. In addition to its primary focus, Damex also engages in Over-The-Counter (OTC) Crypto Brokerage, adeptly handling the liquidation of illiquid tokens. Furthemore, as an authorized Electronic Money Institution (EMI) distributor under MODULR Finance and registered by the Financial Conduct Authority (FCA), Damex is empowered to issue International Bank Account Numbers (IBANs) and sort codes to its clients, enhancing the financial connectivity within the Damex ecosystem.

Damex's Expansion into Exotic Token Trading

In its Over-The-Counter (OTC) operations, Damex boasted a robust trading infrastructure, utilizing Fireblocks for secure custody and holding accounts across a range of exchanges and key OTC entities. Despite this strong foundation, Damex encountered a significant hurdle: the inability to fulfill high-profile clients' requests to liquidate exotic tokens ranked outside the top 300. This limitation stemmed from the absence of a comprehensive provider capable of trading these illiquid tokens, which often pose unique challenges. Such challenges include custody issues due to limited support from technology providers and complex trading scenarios caused by their inherently restricted liquidity.

Algo-r-(h)-i-(y)-thms, 2018. Installation view at ON AIR, Tomás Saraceno's solo exhibition at Palais de Tokyo, Paris, 2018.
Photo by Alina Grubnyak / Unsplash

Why Damex Chose Aplo

Damex chose Aplo as its prime partner for liquidating exotic tokens, driven by several key factors.

  1. Firstly, Aplo's extensive network with both Centralized (CEXes) and Decentralized Exchanges (DEXes) offered Damex the crucial ability to tap into liquidity pools for exotic tokens, thereby addressing the inherent liquidity challenges these assets present.
  2. Secondly, Aplo's track record of successfully liquidating altcoin positions for major blockchain foundations while providing 24/7 white glove support bolstered Damex's confidence in Aplo's trading desk, particularly in handling complex market conditions. It empowered Damex to meet a previously unfulfilled and recurring demand among its customers.
  3. Lastly, the convenience of engaging with Aplo as a sole regulated counterparty significantly streamlined the settlement process, while increasing safety, resulting in increased operational efficiency and ease for Damex.
Photo by Cytonn Photography / Unsplash

Efficient Liquidation: Aplo's Mastery in Damex's Token Challenge

In a notable case, Damex enlisted Aplo's expertise for the liquidation of a token ranked between 300 and 500, a task extending over nine months. The complexity of this operation was heightened by the sizeable holding of the token, equivalent to 6,000 days' worth of market liquidity, in a context where liquidity was notably limited. Demonstrating exceptional proficiency, Aplo managed to liquidate the entire position in a mere 270 days, remarkably without adversely affecting the token’s market price. This feat, achieved 25 times faster than what an average trader might under similar liquidity constraints, can be credited to Aplo's skilled trading team, their advanced algorithms, and the dedicated 24/7 monitoring of trades, showcasing their exceptional capability in navigating challenging market conditions.

Outstanding Outcomes

The collaboration between Damex and Aplo delivered exceptional results in the intricate landscape of illiquid token liquidation. Leveraging Aplo's strategic methodologies and technological acumen, Damex efficiently expedited the liquidation of a substantial token holding, achieving a remarkable speed 25 times greater than industry norms, all while navigating scarce liquidity and minimizing any adverse impact on the token's market price. This heightened efficiency not only addressed a previously unmet and recurring demand among customers but also significantly enhanced Damex's revenue stream. The success of this partnership in navigating such a complex market segment vividly underscores the synergy and effectiveness of Aplo's innovative solutions. Particularly noteworthy is Aplo's ability to provide end-users with maximum value by expertly reducing slippage and executing trades with utmost efficiency.

Photo by Giorgio Trovato / Unsplash

Contact Aplo at contact@aplo.io to explore how our trading desk can help with your liquidation needs, just as we did for Damex.

Oliver Yates

Founder & CEO @ Aplo

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