Why do you think you need large amounts of capital? All an exchange does is match up buyers with sellers, and collect fees.
> Do they have a network of whales that are selling them crypto for fiat for some sort of premium?
This is basically exactly how it works. They have an actual exchange (GDAX) and they just do the exchange on GDAX, and then take an additional cut as fees.
> I know they're linked to GDAX but this still doesn't explain how they source their currency initially.
> Do they have a network of whales that are selling them crypto for fiat for some sort of premium?
This is basically exactly how it works. They have an actual exchange (GDAX) and they just do the exchange on GDAX, and then take an additional cut as fees.
> I know they're linked to GDAX but this still doesn't explain how they source their currency initially.
Why doesn't it explain that?