Why Are Illiquid Crypto Options Often Traded on RFQ Platforms Instead of CLOBs?

Illiquid options, especially those with long tenors or exotic features, lack consistent interest and sufficient order density for efficient price discovery on a CLOB. RFQ platforms allow a trader to solicit quotes from known liquidity providers, guaranteeing a response and enabling negotiation of a larger block size without the risk of moving the market price significantly, which would happen on a thin CLOB.