ArbiTraCoin is powered by an arbitrage trading bot taking advantage of price differences on hundreds of exchanges.
- Listed on External exchange
- Very informative team
- Good daily profit percentage
- No coin price manipulation
- Not much volume on external exchange
- No proof of trading bot
- Shared hosting solution
- 1 year domain registration
ArbiTraCoin is back from the dead with no warning or information about why they had so much downtime. I’d urge anyone not to invest in this platform and as a result of this I’ll drop their rating to a 1.
ArbiTraCoin has been down for more than a week now with no information from the dev team. It’s safe to assume that the platform will not be back online and the investors got screwed by an exit scam. Like always I’m happy to report that none of my visitors got burned in the process.
What Is ArbiTraCoin?
ArbiTraCoin is a lending platform with a very ambitious roadmap with goal to be in the top 100 page on Coin Market Cap in 2018. The only lending platform to ever achieve this was BitConnect and with the damage they have done to the lending space I highly doubt that will happen this year, or ever. ArbiTraCoin just opened the lending program in March so it’s still in it’s infancy. Right now they are listed on Coin Market Cap and you can trade their cryptocurrency on an external exchange.
Like many other lending platform they work with a trading bot and they claim to have developed a software which is able to arbitrage trade on hundreds of exchanges.
The marketing team is strong with ArbiTraCoin and they have a very well produced video, which you can view here, explaining their vision.
How Does ArbiTraCoin Make Money?
ArbiTraCoin has developed an arbitrage trading software which is connected to hundreds of exchanges and is taking advantage of the price difference between them. Arbitrage is a very common business practice which works very well with crypto because of the massive amounts of available exchanges. The price of any crypto is different from exchange to exchange and the volatility difference between them plays a huge role. ArbiTraCoin uses bitcoin and USD as an example in their whitepaper to give an easy example of arbitrage but in reality this can’t be the case since a lot of exchanges doesn’t work with fiat money. I understand they don’t want to give away their trade secrets but the scale of their project must be insane since it requires a lot of cryptocurrency to work properly. ArbiTraCoin needs to have liquid cryptocurrency on all of the different exchanges, ready to sell on one exchange and simultaneously buy on another exchange, in order for this to work.
The ArbiTraCoin Lending Platform
The ArbiTraCoin lending platform is divided into 5 tiers and like all lending platforms the tiers are determined by how much capital you invest in the system, the more you invest the better your loan becomes. But ArbiTraCoin has stepped up the game a bit by giving a flat 2% guaranteed interest rate if you make a loan above $10,010 and that is huge. It gets even better if you go wild and lock in a $ 100,010 loan which will get your capital back in just 60 days.
The two first tiers are where most investors will land and I think that 250 and 200 days is a long time to have your capital locked up, specially in these bearish days. This is definitely a platform for the high rollers and if you have the capital and the balls for it then this is the platform for you.
|Lending Amount||Interest||Capital Back|
|$ 100 – $ 1,000||Daily Variation Rate||250 Days|
|$ 1,010 – $ 5,000||Daily Variation Rate +0.15%||200 Days|
|$ 5,010 – $ 10,000||Daily Variation Rate +0.25%||125 Days|
|$ 10,010 – $100,000||2% Guaranteed||100 Days|
|$ 100,010 – $1,000,000||2% Guaranteed||60 Days|
On top of that you can lock in your loans for a longer period and get a daily interest boost.
|30 Days||60 Days||120 Days|
The ArbiTraCoin Staking Program
ArbiTraCoin runs on a Proof Of Stake system, which means it’s not possible to mine any coins. Staking achieves the same effect of mining (distributed consensus) without the need for expending exorbitant amounts of computing power and energy. Staking is simply put, when users hold their PoS-compatible cryptocurrencies in a specialized staking wallet. If you stake your ArbiTraCoins, you’ll be rewarded with payouts on a rolling basis just as if you were a mining “winning” a block.
This is a great alternative to the lending program if you want to speculate on the price volatility, but also you have the freedom of selling your ArbiTraCoins at any time since they are not locked in a long term loan. ArbiTraCoins offers wallets for Windows, Mac and Linux and you can find the links on their website, never download wallets from unofficial sites and always use 2FA! ArbiTraCoin has made a detailed guide on how to install the wallet and get the staking going.
You can expect the following monthly percentages from staking your ArbiTraCoins:
|Period From||Period To||Stake Return % in ATC|
|February 2018||July 2018||100% (16,6% / month)|
|August 2018||January 2019||80% (13,3% / month)|
|February 2019||July 2019||60% (10% / month)|
|August 2019||January 2020||40% (6,66% / month)|
|February 2020||July 2020||20% (3,33% / month)|
|August 2020||January 2021||10% (1,66% / month)|
The Team Behind ArbiTraCoin?
Just like any other lending platform I’ve looked into, the team behind the scenes are anonymous. In fact there is no mention of a team or where they are located in the ArbiTraCoin whitepaper.
Like always we dive into their domain name whois and I was actually surprised by the results. It turns out ArbiTraCoin is not hosted on a dedicated server, but there is 237 other sites hosted on that IP address. On top of that the domain is only registered for 1 year, on 11 dec 2017. This is a red flag in my book and I’m very surprised they decided to go the cheap route with a shared hosting solution and to save a few dollars on a few extra years on the domain name.
Their domain contact is protected by WhoIsGuard, but this is normal practice for anything online these days.
The Bottom Line
Honestly ArbiTraCoin has a lot of things going for them and they have a really impressive marketing team setting them apart from many other lending platforms. Their website is very well put together and they have taken their time to explain their project and vision. A huge plus is that they have a whitepaper, which is not hidden away on their site, it’s highly visible and for a good reason. They have put a lot of effort in it and it’s the best lending platform whitepaper I have seen, it does however have a lot of fluff, but the overall standard for lending platform whitepapers are very low.
ArbitraCoin is listed on external exchange and is visible on Coin Market Cap which gives the coin some exposure. Unfortunately there is not a lot of volume on the external exchange at the moment for a high ranking, but that could easily be because all lending platform are struggling with a bad rep.
Unlike many lending platform ArbiTraCoin does not manipulate their coin price, they have accepted a low price and is instead sticking to their vision for organic growth. In the past investors have been wanting price manipulation for better loans but this will always be bad since no coin has been able to grow organically to the set price. Etherlink is struggling at the moment due to their own price manipulation, pumping their token to an unsustainable price and is currently voting on a reboot.
ArbiTraCoin is also quite active on social media, specially on twitter and telegram, keeping their investors informed about what’s happening. I’ve even seen them respond to youtubers calling them out as a scam, so they are very protective about their brand.
Another thing that sets ArbiTraCoin apart from other platforms is they have made very detailed video tutorials and easy to use step by step features for their members.
So why the low rating on this platform you may ask, they do so many things right? And to be honest I was very impressed with the platform to begin with, but as I started to investigate the following causes for concern started to arise. They do suffer from the same problem as other lending platform with trading bots and that’s the proof of the actual trading bot. But the nail in the coffin for me is the scale of which this bot has to work, which to me sounds impossible. There is simply no way they can have this bot work on hundreds of exchanges with capital on all of them to exploit the price differences.
Another issue for me is actually the daily returns, they are simply to amazing. Too guarantee a 2% fixed return each day on a $10,010+ simply seems to good to be true and highly unsustainable. Even Bitconnect was not that ambitious and was paying about 1% on average. I can’t help but think some of the capital from the lower capital loans will be funnelled to the high rollers and that’s pretty much the definition of a ponzi, but that is pure speculation on my part.
The major red flag for me was the shared hosting solution, which of course very well just could be for their landing page and everything else is hidden away on dedicated servers. But why save some bucks on hosting surely they could afford it after a successful ICO and launching their internal exchange to sell off some coins. On top of that there is the 1 year domain registration, which will expire in 11 dec 2018. It doesn’t seem like the developers had much faith in their own platform to begin with.
I am a bit harsh of ArbiTraCoin, but that’s simply because this all seems to good to be true plus I got burned with Bitconnect, and that will always be in the back of my mind when going in on an investment platform. The question should always be: is this to good to be true? I’ll let you decide…