Are Dark Pools Used in Cryptocurrency Markets to Prevent Information Leakage?

Yes, dark pools, or similar off-exchange trading venues, are utilized in cryptocurrency markets. They primarily cater to institutional investors and large-volume traders.

The main purpose is to execute large block trades without immediately impacting the public order book. This helps prevent front-running and significant price slippage due to information leakage.

These platforms facilitate discreet, large-scale transactions.