Editor choice

Arbitraging

9 Total Score
Arbitraging - Decentralised Arbitrage Trading

Arbitraging aims to be the game changer in the market and raise the bar for all lending platforms.

Daily Interest Rate
8
Social Media Pressence
9
Hype
10
Website
3
Exchange
8
PROS
  • Proof of working trade bot
  • Listed on external exchange
  • Decentralised platform
  • ERC20 token on ethereum blockchain
CONS
  • Not for newbies
  • Website needs work
User Rating: 5 (7 votes)

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What Is Arbitraging?

Arbitraging is taking a very simple approach to set themselves apart from the rest of the lending platforms by being transparent. Arbitraging initially started out as XRPConnect back in Nov 2017, with the purpose of a supercharged XRPC token with 4 major features: Lending platform, trading bot, exchange, advanced banking protocol. After the massive failure of BitConnect and Davor in Jan 2018, the entire lending space was a dead fish and XRPC had to rebrand to get rid of the Connect in their name. The affiliate system was also trimmed to just 1 level with the purpose to steer away from the MLM model. But back in Feb 2018 the platform had to be trimmed once again, to further make the platform long-term, stable and a sustainable solution of passive income, they have switched to “hybrid investment strategy”. This consisted of 2 investment options:

  1. aBOT – Trading bot that does trades automatically, therefore giving you the profit it earns daily.
  2. mBOT – This feature will allow members of the platform to freely interact with the trading bot and make trades manually.

This was a great move but they still haven’t fixed the issue of their platform name. It turned out that a lot of negativity an confusion was tied to the XRPC name and another change was needed. On the 2nd March the new platform name went live and it’s the one we know today: Arbitraging. If you are interested in the previous promo videos and interviews when the platform was name XRPC, then you can watch them all on youtube right here: XRPC Official.

With a new name the only thing that was missing was the end of the ICO, which happened on April 10. aBOT went live April 15 after 6 weeks of beta testing and the release of mBOT is yet to come.

Arbitraging is an ERC20 token, which is a contract deployed on the Ethereum blockchain. Arbitraging aim to put their investors first and ensure they are rewarded with realistic sustainable profits. Arbitraging makes use of the smart contract system and the entire platform is decentralized. The decentralized nature of the exchange enables ARB tokens stored on any external ERC20 compatible wallets like MyEtherWallet or MetaMask. This ensures that ARB tokens are always held separate and when the Arbitrage trading BoT is active, those tokens are sent to an external cold storage wallet and the daily profits are sent back to the designated external wallet.

You can view the Arbitraging promo video right here, which will explain the basics behind the platform.

How Does Arbitraging Make Money?

The Arbitraging team claim to be the masters of arbitrage trading and have developed a trading bot solely for that purpose. Arbitrage trading is simply put buying a token/coin on one exchange at a low price and then instantly selling it in another exchange for a higher price to lock in profit. Arbitrage trading is a very popular trading technique and several on the lending platforms reviewed on this site offer this. But Arbitraging is the ONLY platform so far which has shown this work live and the software is setup to never make a trade at a loss.

The Arbitraging Lending Platform

The Arbitraging lending platform is very different from other lending platforms and some even say it’s not a lending platform at all. It is a lending platform, but it’s much more hands than the others and without all the fluff. There are no lending tiers or lock in periods with Arbitraging, what you are getting is access to their trading bot and then you pay a fee of the profits generated. With times those fees will be reduced and will work for both aBOT and mBOT.

BOT usageFee on profits
1 – 30 days3.0%
31 – 60 days2.9%
61 – 90 days2.8%
90+ days2.7%

Like I mentioned in the introduction then Arbitraging has two options for lending, the aBOT and the mBOT.

Arbitrage aBOT

In order to make use of the aBOT you need $250 worth of ARB as a minimum and there is no roof on how much you can invest. The aBOT works a bit different from what we are used to with lending platforms. Once you put your ARB tokens into aBot you sell your tokens to the Arbitraging platform. You will receive a USD value in the bot in exchange for your tokens. This USD value does not go up or down, this will be a fixed amount similar to the capital used in regular lending platforms. In return you will receive daily payouts in ARB depending on the performance of aBOT. You can then choose to either sell your ARB for ETH or re-invest them, but you need to have a minimum of $250 in total before the re-invest will activate. Unlike any other lending platforms then you can withdraw your investment out of aBOT at any time. When you withdraw from aBot, you are rebuying ARB at the current value. If ARB has gone up\down, you will get less\more tokens back, but it will always equal to your original $ value.

When you’re expecting the value of ARB to go up, you want to hold the token. When you’re expecting the value of ARB to go down, that’s when you want to transfer to aBOT. This is what separates Arbitraging from regular lending platforms, because you are not getting a paid interest rate of your loan, you are actually getting the profit from the bot and you are in total control of your investment.

Example: 100 ARB tokens in wallet at $4/token equals $400 USD value now in aBOT. At this point you no longer own ARB tokens and you cannot participate in any token price growth with these funds since it’s not tokens anymore. Your $400 USD is now in the aBOT and will never change, no matter to where token price moves. The aBOT registers this $400 principal USD value and arbitrages with it indefinitely, until you personally stop aBOT.

When you withdraw your original $400 USD from the aBOT, you actually buy new ARB tokens as the transfer happens from aBOT to your ARB wallet. You then buy the ARB tokens again at the current aBOT stop price. You invested $400 USD and that’s the USD amount you will get back out. If ARB tokens are now worth $5/token, you receive 80 ARB tokens back. If ARB token is still at $4, you will receive 100 ARB tokens back.

The profits are paid out in ARB tokens by aBOT at the current price of ARB tokens. So if you had $400 invested, and made 1% that day, you would get $4 worth of ARB tokens, not 4 ARB tokens. If the token price is at $1, then you’d get 4 ARB tokens. If the ARB token price were at $5/token, you would get .8 ARB token in profit paid out that day.

This is important to understand for your strategy as to how to maximize your available funds. You do not transfer your tokens to the aBOT, assuming whatever tokens you gave the aBOT will increase in price as the token price rises because in aBOT you do not own any ARB tokens. One thing to note is that the team has working hard to implement new features to prevent abuse on the start/stop system, meaning you could hedge your ARB in the aBOT and capitalize on the price difference without using the exchange. The most recent change is removing any restrictions for moving in and out of the aBOT, but instead implementing the aBOT stop price. The aBOT stop price is a calculation of the entire worth of ARB tokens added to aBOT,  divided by the amount of ARB tokens added. At the moment the aBOT stop price is higher than the actual worth of ARB going into aBOT, because many have taking advantage of entering aBOT of a high followed by a dump. As the price of ARB increase overtime the aBOT stop price will follow the value of the exchange. It’s very important to look up the value of ARB on the exchange and compare to the value of ARB from the aBOT stop price to make sure you don’t cheat yourself on the price difference.

I like that you have the possibility to choose the more hands on approach and play the market for max gains, but you also have the option to just load up aBOT and collect the passive income without having to log in to their website every day.

The aBOT performance is outstanding as you can see from this screenshot taken 19 Jun 2018:

aBOT performance

The average is close to 1% over a full month and the beauty of arbitrage trading is that even though we are currently in a bear market, it is still possible to make a profit.

Arbitrage mBOT

Arbitraging has finally released their mBOT to the public after a long period of beta testing. The mBOT is an entirely different beast than aBOT, and with it you now have the option to take full control over the Arbitraging bot. Since this is a manual trade bot there is a lot of work to be done before you can start the actual trading. First of all you have to select the exchanges you want to trade on and which coins/tokens to trade with. This involves a lot of time getting API keys and wallet addresses setup on the Arbitraging website.

In order to use the mBOT you have to register from the wallet tab and it will cost $500. This amount will be used  as gas for the mBOT and every time you make trades in mBOT, some gas will be used, in others words gas equals fee for using the mBOT.

Once everything is setup correctly you can start to use the mBOT. In the screendump below you can see the mBOT interface. I´ve select to trade with $USD with a trade value of $5,000 and a spread value of 1, the spread value is the percentage difference between the exchanges. As you can see my gas tank is 0% because I’m currently not in mBOT. Below the gas tank is the coin selection and you simply just go through the coins to see which offer good arbitraging opportunities. I’ve only added a few exchanges to the mBOT, but there is a total of 10 to choose from. With the current selection, two arbitraging trades are green which means they match my selection and the red ones are not profitable trades. To activate a trade, click on the green box and confirm the trade can begin.

mBOT arbitrage trading

It’s really a very simple setup, but it does demand a lot of work from the user, going through all of the arbitraging options. One thing to keep in mind is also the fees, which will pile up when you move coins from one exchange to another plus the fee from using the bot. It does seem like you need a lot of money to work with in order to really take advantage of the mBOT.

The mBOT is still in it’s early stage and there is a lot of people who are working on how to make the most of it. There is a discord and a telegram channel setup for people to help each other and I urge you to have a look at before you dive in to using the mBOT.

The Arbitraging Staking

There is no staking program for the ARB token, which means you will not get any extra tokens just by holding the token, what you buy is what you get. One thing to note is the low ARB token supply which is only 8.7 million, which makes ARB a perfect candidate for massive price increase with a working product and some marketing. So you may want to just hold the ARB token instead of loading it in to the aBOT and just wait to for the price to go up.

The Team Behind Arbitraging?

Unlike any other lending platform Arbitraging has a very transparent team and a CEO who regularly communicates. The CEO is David Peterson and you can find several interviews with him on youtube, even before the platform changed their name to Arbitraging. This is very reassuring to me since it’s very uncommon for the CEO to step forward in to the public eye with a face to face interview.

I have done a reverse image search on all of the team members listed on their site and none are swiped from any other sites. Several team members have listed their Linkedin profile and they do seem legit. Only one of the team members Linkedin profile is not working, Kai Dela-Crus who is the co-designer and I am not sure if he is still with the platform. The last listed team member is Ivan Lomakin, who has no descriptive text, so I’m not sure what he does with Arbitraging. I was able to track down his facebook profile and I have send him a message to clarify his involvement with the project. He also has a twitter page, but it seems like he is also working with other platforms. It is in russian so if any of you can figure out what’s going on, please let me know through the comments or via my facebook page.

Update - 2018.06.24

I have heard back from Ivan Lomakin and he has confirmed that he is indeed working with Arbitraging.

According to the domain name whois then Arbitraging registered their domain 12 Feb 2018 and it’s locked in for 2 more years. As expected their website is hosted on a dedicated server so everything is looking good.

Their domain contact is protected by Privacy Protect, LLC (PrivacyProtect.org), but this is normal practice for anything online these days.

The Bottom Line

I first stumbled upon Arbitraging a few weeks ago and didn’t really see anything special about the platform, it just seemed like another run of the mill lending platform and their website didn’t manage to catch my attention. But in the time I’ve spent looking into the platform for this review, I have changed my mind completely and Arbitraging have managed to provide a working arbitrage trading bot and proof to back it up. This is huge since this has always been the problem with all other lending platform claiming to have a bot, you never knew if there actually was one. I know of one other lending platform (FiCoin) which tried to walk the same path as Arbitraging and they failed horribly when it came to scaling and they abandoned the project. The performance of aBOT is amazing and it is truly the passive income stream we were promised in so many other failed platforms.

I really like the fact that Arbitraging shaved off the lending tiers and the lock in of the investment for a longer period. I’ve only experienced one capital release in my entire time in the crypto space because of the too long lock in period on smaller loans and by then the platform would implode. With Arbitraging you can get out of the platform at any time and you will not get sucked in to do a larger loan because you have to get in to another tier.

Another thing they got rid of was the MLM platform which many other lending platform use. It’s always a cause for concern when a platform offers an affiliate program with many tiers, which ends up playing a lot of percentages for loans. Arbitraging will only pay for 1 tier of referrals and only 5% of the profit generated from aBOT. This is the way to make a sustainable affiliate system which will not break a platform.

The decentralized nature of the platform and the fact that all activity of aBOT is recorded on Etherscan for every one to see makes Arbitraging completely transparent. This is exactly what I have wanted with other lending platforms and I truly hope that Arbitraging will raise the bar for the entire lending space.

There has been a lot of hype around Arbitraging this month and the platform is really starting to fuel the rocket for lift off. In early June the ARB token was only worth 60cents and in the middle of the month it hit the all time high of $7. ARB tokens can be traded on the internal Arbitraging exchange, which recently had an all time high 24hr trading volume of $900,000. At the moment ARB is listed on two external exchanges, CoinExchange.io and TokenJar.io. It is possible to do some arbitrage trading of your own with the ARB token since the price on the external exchange usually differ from the internal.

I don’t really have any bad things to point out with Arbitraging other than recently I had some logins issues one evening but it was fixed quite fast. The amount of new people commings into the platform seems to come as a surprise even to the Arbitraging team. I’m sure they will be ready for the next wave of new members.

I do think the Arbitraging team could work on their website and make the process of aBOT more easy to use for new people. This seems to be a platform for more experienced people in the crypto space and you really need to double check everything you are doing. One major problem is that you can only load ETH or ARB into the platform from the wallet you signed up with. If you send from another wallet, ie exchange, then you will not get credit and that makes the process of buying on external exchanges a bit more time consuming. You basically have to send from the exchange to your ether wallet and then to the Arbitraging wallet, so you have to pay attention plus an extra transaction fee.

Arbitraging has finished the first release of their mBOT and I can only imagine this will eat in to the customer base of other trading bots like Cryptohopper and Profit Trailer. I expect the value of the ARB token only has one way to go now but up and if both aBOT and mBOT continue to deliver we will never see the ARB token below $5 again.

For full transparency I have to disclose that I have bought a small amount of ARB tokens, FOMO got to me and this platform seems to deliver on every front. The only thing holding me back from giving this platform a 10/10 is the website needs some improvements and it’s not an easy platform to use.

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2 Comments
  1. good post. i love ARB

  2. Concise and good clear report. Well done, I might have mentioned the Historical Fact that Arbitrage is in fact developing on the Blackbird Open Source Bot Project available on GitHub. As verification of a Bot existing.

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