Our development team, under the supervision of Dejan Jovanovic, created a convenient, user-friendly, and great looking way of purchasing HVNs inside the platform, making Hiveterminal’s entry into the global financing industry that much faster. The OTC was a necessary step prior to allowing all companies and institutional investors to act as invoice buyers, as their financial departments are reluctant to buy the HVNs needed on a non-licensed, non-regulated, secondary markets. It is even more important for all companies acting as debtors that are already registered on Hiveterminal, allowing them to better take advantage of the opportunity to buy invoices on which they are invoice payers! We have been in direct contact with CEOs and CFOs of some of the largest Slovenian enterprises and, while they are enthusiastic about the possibility of using Hiveterminal, they pointed out that it would be more convenient if HVN were easier to buy.

The OTC is here and we are very optimistic about the possibilities it opens up.

Over-the-Counter (OTC) Purchasing: Easy to use

The over-the-counter solution is operated simply and quickly. All invoice buyers need to do is click the BUY button when they need HVNs to see the market or buy an invoice.

The tokens needed to execute orders are — with the current release — bought on the exchange and sold on Hiveterminal for 1 EUR per HVN!

To give an example, if a company or institutional investor needs 100 HVNs to pay the 1% Hiveterminal fee, they would be able to buy it on the secondary market for the current price or buy it on Hiveterminal for 1 EUR per HVN.

With the current exchanges having troubles performing in the eyes of institutional investors and companies, the majority of legal entities that act as invoice buyers would be buying their HVNs through OTC. Eventually, those selling HVNs on the exchanges would see the price difference and start selling for a higher price, having benefited from the OTC as well, creating a more stable price — closer to 1 EUR — in the process.

Tokens, used for OTC purposes and received back by Hiveterminal, will be sold back only if there is a need for liquidity, meaning that the tokens are effectively locked until further notice! The effect will be that the overall number of HVNs will slowly decrease, creating a more stable price for our users.

Coming Soon: The Contributor-Gathered Liquidity Pool! Designed to Deliver the Benefits of the OTC Price to Token Holders!

The current solution for OTC purchasing will stay in place until the release of our all-new contributor-gathered liquidity pool, designed to deliver benefits of higher OTC price to our token holders! The HVN-OTC liquidity pool will consist only of tokens, contributed from our token holders and will become the only source for the OTC! Subscribers are going to get proceedings according to the percentage of tokens they contributed to the HVN-OTC liquidity pool, paid quarterly to their Hiveterminal account in FIAT currency.

More about the all-new liquidity pool will be described in one of the upcoming blogs.

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How Does Over-the-Counter (OTC) Work?

The purchasing procedure is as easy as clicking the BUY button and is executed immediately, delivering much better UX for invoice buyers.

Users can now purchase tokens by clicking BUY HVN. A popup window will come up where you will enter the amount of HVN you want to buy and click Buy Now.

Important: We changed the rule on how much HVN you need to see the market. From now on, you will need 50 HVN.

All HVN purchases via OTC will be stored and visible in the Funds module.

The OTC functionally will come in handy the most when buyers do not have enough HVN to pay administration costs (especially debtors registered as users on Hiveterminal). As you can see below, you will have the option to BUY HVN when you are viewing an invoice you want to buy. The administration cost of 1% of the purchase price will be linked to the HVN OTC price.

If you are buying an invoice with the purchase price of 1000 EUR, you will need 10 HVN to pay the fee, which is equivalent to 10 EUR of the OTC price. At that point, you will enter the amount of HVN necessary to buy this invoice and, by confirming the purchase, the buy option for the invoice will be available to you.

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With more important business and tech development announcements lined up in the days and weeks ahead, I am convinced that this April will be a month to remember for our employees, contributors, and users.