Can anybody point me to a forum link, or explain the TRADE.BTC/LTC implementation in detail?
Specifically, curious how/where physical coin (BTC) is held, and how that wallet is controlled. I assume TRADE.BTC acts as a marker for real BTC? On withdrawl, it cuts supply and withdraws from an actual bitcoin wallet somewhere or via the blockchain directly?
I also assume that TRADE.BTC differs from BitBTC by not being a BTC collateral backed short position but rather a fungible asset itself backed by real BTC?
edit:
I think I understand this is done thru the gateway, but doesn't this assume that the gateway has a balance enough to withdraw, and thus having similar liquidity risks as with a centralized exchange but with the security of being able to cash out from any gateway that is liquid for the required amount? Does the gateway specify a fee for conversion (trade.btc => btc)?
Thanks!