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Arbitao: The New Way Of Arbitrage Trading

Sunday, June 24, 2018

About Arbitao

The last years were extremely exciting and profitable for the crypto community and the ecosystem around the cryptocurrency markets is maturing slowly but surely. Nevertheless, the nascent cryptocurrency markets are still plagued by fundamental problems like a lack of regulation, security issues, and manipulation. Arbitao Consequently, the markets are in consolidation mode after the crypto craze of late 2017 pushed Bitcoin prices to almost $20,000 and though it is way harder to achieve profits in this situation a lot of traders are turning to arbitrage strategies because they are working in every market environment and are virtually risk-free.

The cryptocurrency markets are the perfect playing field for arbitrage traders because low liquidity in some markets or trading pairs is creating drastic volatility that results in enormous price spreads. Arbitao But due to the fragmented nature and inefficiency of these markets in terms of execution even arbitrage traders face some vital challenges like various registrations and account setups, automated access, execution speed, security and liquidity on lots of exchanges.

Key Features

Arbitao is an opportunity to earn profits with automated arbitrage strategies including arbitrage pairs and chains without risk, based on specialized algorithms, financial expertise, and unique technical solutions. Arbitao offers various investment pools for each type of individual in order to benefit from automated arbitrage trading together as a community. Arbitao is developing the ATAOwallet with integrated cloud computing features to solve the highly complex solution room of possible arbitrage chains. Any member of the community will be able to contribute computing power to the system and earn additional rewards in the process. Arbitao is working on building a unique network infrastructure in order to reduce latency by up to x100 and execute the trades in the shortest time possible. Arbitao is an aggregator of liquidity and an instrument for lowering volatility of the
whole cryptocurrency market, which will aid the mainstream adoption of cryptocurrencies and make the market more attractive to institutional investors due to improved maturity.

Market

The Origins

Although the development of the underlying technology dates back to the 1980s, cryptocurrencies, as a company knows them, are a quite new and rapidly evolving phenomenon. Bitcoin was the first digital currency to be developed in 2008 by the pseudonymous developer(s) Satoshi Nakamoto and was released in early 2009.

In its early days, only a few cryptography experts and privacy advocates knew as the Cypherpunks recognized the revolutionary potential but Bitcoin remained mainly undiscovered by the masses until mainstream media began to cover. In late 2011 Litecoin was one of the first alternative digital currencies to be developed based on the Bitcoin protocol and gave birth to rise of the Altcoins. Although there are thousands of cryptocurrencies today Bitcoin always maintained its dominance over all the Altcoins.

Performance

The first real-world transaction with Bitcoin was arranged in May 2010 when two pizzas worth $25 were bought for 10,000 BTC, valuing one Bitcoin at less than one cent ($0.01). Just about one year later Bitcoin had already achieved parity with the US Dollar ($1) and kept rapidly shooting higher over the next years until it peaked at around $1,250 at the end of 2013. The collapse of Mt. Gox which was by far the biggest exchange at that time, handling almost 70% of the total trading volume, dealt a severe blow to the confidence of Bitcoin investors and BTC prices had to go through a long-lasting consolidation phase until the all-time high was broken in early 2017 but once the ATH was broken Bitcoin skyrocketed.

Problem

Along with the new disruptive technological opportunities, also new issues are also occurring and have to be taken into account. Because of the lack of liquidity for certain pairs, price manipulations and the high amount of non-professional traders, the cryptomarket generally can be declared as extremely volatile. This leads to inefficiencies, where prices are highly varying between exchanges, especially when analyzing pair chains. Among various factors, this is one of the most important reasons why institutional investors are still worried about entering the crypto area, which hinders the technology from evolving. In order to stabilize these inefficiencies and benefit from potential arbitrage possibilities a lot of technical solutions and administrative workflows have to be implemented.

Product Solution

The services of Arbitao will be realized in four sequential stages. The company in the worker solutions are designed to solve all the problems faced by arbitrage traders, like having to go through a lot of KYC/AML registrations to sign up to various exchanges, dealing with different interfaces, getting sufficient funding and liquidity at all the platforms and finding the most promising arbitrage opportunities.

Arbitrage Trading

Arbitrage was defined by the French merchant Mathieu de la Porte. In his treatise “La science des n√©gociants et tenures de lives” it was used as a consideration of different exchange rates to recognize the most profitable places of issuance and settlement for a bill of exchange. From an academic point of view, an arbitrage is a transaction that involves no negative cash flow at any probability. Nowadays arbitrage is a trading strategy in economics and financial markets that enables traders and institutions to take advantage of price differences between different markets. These differences occur due to inefficiencies of the markets, which lead to price spreads of currencies. Consequently, these spreads can be exploited for profit generation.


Technical Details

The ATAO blockchain is based on NAV Coins code and the entire the project named ATAO-core is public on GitHub https://github.com/arbitao/atao-core. The decision to the premise of the work of NavCoin’s developers was made because the blockchain they created is fast, secure and has low transaction costs. It was not necessary to “reinvent the wheel”, so to speak. There are a couple of differences between navcoin-core and ATAO-core. One of them is that staking is much more rewarding with ATAO. The reason for this is that a lot of takers means that the network has a higher grade of decentralization. High staking rewards are a strong incentive for staking and will secure the network with many nodes.

Information Token



Coin Usage


ATAO is an access tool to the Arbitao trading platform, where based on the invested amount of coins certain arbitrage services are guaranteed to the coin holder. Additionally, coin holders can stake them in their ATAOwallet and earn more coins. Furthermore, the coin holder is able to use the cloud computing capability feature of the ATAOwallet in order to find the most profitable arbitrage chain in the multidimensional cube solution room.


Team 
  • John Kinsey – CEO
  • Karel Mirrin – CTO
  • Stefan Bratcher – CMO
  • Romana Basilaris – Social Media & Community Manager
  • Marco Baturan – Senior Software Developer
  • Mojtaba Kargar – Python Developer
  • Marco Santanch√© – Quantitative Analyst
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