Arbitao

5 Total Score
Arbitao - Arbitrage Lending Platform

Arbitao is backed by an arbitrage trading system which in the future will be available for user customization.

Daily Interest Rate
6
Social Media Pressence
9
Hype
9
Website
10
PROS
  • Active on social media
  • Good marketing and hype
CONS
  • Very high total coin supply
  • Long loan duration
  • 1 year domain registration
User Rating: 3.67 (6 votes)

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Update - 2018.11.21

The future of Arbitao is very uncertain right now. The admins have left the telegram group and people are not getting their principal investment returned at the end of the loan period. It very much seems like Arbitao has pulled an exit scam. The members of the telegram group is talking about a lawsuit to track down the Arbitao devs.

If you have invested in this platform, I urge you to join the telegram group to stay informed with the latest developments of the lawsuit. Joining an ICO is always high risk, never invest what you can’t afford to lose.

What Is Arbitao?

Arbitao is another lending platform which generates profits with their automated arbitrage system working on several large exchanges. Arbitrage seems to be the hottest thing at the moment, which actually makes perfect sense. Arbitrage trading is one of the most reliable trading systems, which has the benefit of working in a bear market. The entire cryptocurrency market has been in a bear market since early 2018, so I expect to see more of these platforms pop up in the near future.

The Arbitao blockchain technology is based on a forked code of NavCoin and the coin symbol is ATAO. The blockchain is PoS, which means it’s not possible to mine the coins. The main goal of Arbitao is to use the ATAO Blockchain to execute trades in a decentralized way. This will be integrated in the ATAO wallet, where every node can set up their API connection to predefined accounts. In the future the goal is to grant Arbitao community members the possibility to execute their own trades. It will also offer the feature to program own algorithms and use the Arbitao infrastructure.

Arbitao has made a very informative and long whitepaper which I urge everyone interested in the project to read.

Like always I’ve grabbed the promo video for easy viewing and you can check it out here. It’s quite long and does a great job of describing the platform. Some of the Arbitao team members seems like paid actors, but it was good to see some familiar faces from their team.

How Does Arbitao Make Money?

The decentralized Arbitao arbitraging system is able to find profitable trades constantly. Only profitable trades are executed automatically for safe profits.

Instead of just sticking to one cryptocurrency Arbitao is arbitrage trading many cryptocurrencies on several exchanges. It is possible to see the live trades on their website. A live ticker shows the trading pairs and the exchanges involved in the trading and finally you can view the profit percentage. The live ticker is very well made and very pleasing to watch in action, but I’d feel more safe investing in this platform if they showed the arbitraging system bot making the trades live.  There is a chance that this is just a flashy gimmick and no trades are actually made. I’m very sceptical since the first generation lending platforms claimed to have a bot, but none of them did and this could just be the next step.

The Arbitao Lending Platform

The Arbitao lending platform is similar to what we are used to with other platforms. Only that they call it trading pools, and it’s split into 4 tiers depending on how much you want to invest.

Trading PoolLending AmountInterest*Capital Back
Bronze$ 100 – $ 1,0000.50%240 Days
Silver$ 1,001 – $ 5,0000.60%190 Days
Gold$ 5,001 – $ 10,0000.70%150 Days
Platinum$ 10,000 +0.75%120 Days

*Daily interest rates are based on experience and calculations. The actual rates can be higher or lower depending on the market situation.

I’m not really happy about the way Arbitao has set up their lending platform. It’s not clear if there actually is a bonus in the interest rate, and if the interest rate is capped for each tier. I can only assume the only thing that is for certain is the length of the loan.

The Arbitao Staking Program

Arbitao also offers staking and it’s not clear what the rewards are looking at their website, but they have it in detail in their whitepaper.

In order to stake ATAO a version of the wallet must be downloaded and installed on the computer. After the entire blockchain is downloaded the wallet is ready for staking. When you transfer ATAO to the wallet staking will begin within 1 min and you will be informed about the expected reward and a timeframe.

The staking rewards are higher at the beginning, which incentivize a lot of people to stake. According to Arbitao this in turn guarantees a strong decentralized network with fast transaction speeds. But in all fairness I think people are just more interested in getting more coins and raising the value of the coin. In the first month, the staking rewards are 5%. If you stake 10,000 coins you will get about 500 coins as reward after one month of leaving the ATAO wallet online with staking
enabled. The staking reward will drop by 1% each month, so you have to get in early to reap the rewards.

MonthStaking Reward (monthly interest)
15%
24%
33%
42%
5-121%
12-240.8%
>240.58333% (7% per year)

Arbitao Affiliate Program

Arbitao has a very generous affiliate program which is also a part of their income stream. The profit from a trading pool package will be distributed between the investor, the affiliate and Arbitao itself. The following is a copy from the whitepaper: As each party is contributing value to the Arbitao community the allocation of the profits is as followed: 80% to the ATAO-Coin Holder, up to 18% to the Affiliates and at least 2% to Arbitao. I’m not so keen on the wording of the sentence since it seems like you only get 80% of the profits on your investment. The other 18% goes to the platform affiliate program, but what if you have no affiliates and didn’t sign up under anyone, do you then miss out on 18% of the profits? The remaining 2% go to the Arbitao platform, but it’s worded as at least 2%, does this mean it could be more? I this where the other 18% are going if you have no affiliates? To me it raises more questions than answers.

The affiliate program is divided into the following 3 tiers.

Arbitao Affiliates Program

I’m always a big fan of MLM since they just can’t hide the fact that it’s a pyramid scheme. The reason to this approach according to Arbitao is: Other ICOs are spending multi-million dollar budgets on marketing agencies. We decided not to go this way but to empower the Arbitao community with an affiliate program.

This is certainly a true statement but it just reeks of a ponzi scheme where the money from Paul is needed to pay of John and so on. I’d be much more confident in the platform if they would shave of two tiers and lower the percentage to something near the 5% mark.

Arbitao Pre ICO Phase

Arbitao is having a pre ICO before they launch the actual ICO. A soft cap of  $20,000,000 is needed to cover the development costs, network infrastructure and to ensure enough liquidity for at least 19 high volume exchanges. Arbitao is offering some heavy bonuses which will decrease doing the pre sale as an incentive to get investors to buy in early. If the soft cap should not be reached in the pre ICO, a 10% bonus will be extended to the main ICO until the soft cap is achieved.

Pre ICO sales date: 1st July 2018 (01:00:00 GMT) until 17th July 2018. I have not found any information about the minimum buy in.

Sold QuantityBonusRound open
10,000,00040%Jul 01 – Jul 02
15,000,00035%Jul 03 – Jul 04
20,000,00030%Jul 05 – Jul 06
25,000,00025%Jul 07 – Jul 08
30,000,00020%Jul 09 – Jul 10
40,000,00015%Jul 11 – Jul 13
60,000,00010%Jul 14 – Jul 17

Earliest arbitrage platform launch for early Investors: 20th July 2018.
ICO sales date: 22nd July 2018 until 19th August 2018, min purchase is $100.

A total of 800,000,000 ATAO will be distributed starting July 1, 2018. 1 ATAO is worth 0.1 USD or its equivalent in another cryptocurrency. Arbitao will accept 9 different cryptocurrencies as payment.

Any unsold ATAO coins will be burned after the ICO and all of the team’s coins will be locked for 1 year. This is very good news since this will prevent a massive possible surplus of ATAO and it’s not possible to for the team to dump the coins for early exit scam or obvious price manipulation.

The Team Behind Arbitao?

A positive thing with Arbitao is that the team has come forward and you can find links to their Linkedin profiles on their website. Not all of the team members have Arbitao as a workplace in the Linkedin profiles, but they could just act as consultants.

Some of the team members have also made a public appearance in Berlin for the BlockShow Europe conference. It’s great to see the team behind a lending platform come forth since it builds trust in the platform.

Like always it’s time to see what information we can pull from their domain name, which they registered 9 March 2018 and locked it in for just 1 year. I’m always sad to see a 1 year domain registrations since it’s doesn’t show confidence in the platform. If you have a working product and spend money on marketing, why save a few dollars on a domain name. The good news is that the site is hosted on a dedicated server, which usually bodes well for an ICO.

Their domain contact is protected by WhoIsGuard, but this is normal practice for anything online these days. Actually this is the last time I’ll make a remark of this.

The Bottom Line

Arbitao is getting a lot of hype these days with high listings on other ranking sites and a lot of youtubers are talking good about the platform. But I’m not really excited about Arbitao, it seems like a more polished version of the first generation lending platforms. They don’t bring anything new to the table, Davorcoin had the same sales pitch with arbitrage trading. Arbitao is spending a lot of time talking about arbitrage trading but I still need to see the system in action, to me the trade ticker on their website is not enough. They show the possibility of an arbitrage trade with the spread and the profit, but they fall short to provide the actual gains with an order. In other words how big is the order, are we talking a few dollars or real amounts?

The daily interest generated from the trading pools is a bit mushy and I understand that it’s not possible to give a fixed amount. They really should make it clear if there is a bonus by investing more like with other lending platforms. With the current setup I fail to understand why there even is a difference between the loan amounts. On that note I think the length of the loans are to long which brings me to the next point.

The biggest pull of Arbitao seems to be their generous affiliate program, I really can’t see any reason why this platform should surpass other working platforms like Arbitraging,which have a tried and true working arbitrage trading bot generating profits for months. I feel like Arbitao has been looking over the shoulder of Arbitraging, since they also tease with the possibility of making manual arbitrage trading in the future. The affiliate program coupled with the long duration of the loans just give the impression of a pyramid scheme where Arbitao can buy time to pay of the big investors with the small investors capital. They claim to be a decentralized lending platform, but this seems far from it.

Another thing I don’t like about Arbitao is the copious amount of tokens. 800,000,000 ATAO coins will be sold in the ICO and I’ve not been able to find any information about the total supply. In my opinion this is to many coins for lending platform, specially in the current market where people are holding on to their cryptocurrency. We all want the possibility for quick returns and I predict it will take many months maybe even a year before you get any decent returns just by holding on to the coins. The staking program alone seems to wear off after a few months, so what is the incentive for short term speculation? To me this seems more like a long term investment and a few months in crypto is like years in a normal market. I’d advice investing in other altcoins if you are a long term investor.

I think the only salvation of Arbitao is that their team is known and the chance of them pulling an exit scam is very unlikely. The team is very active on social media and they are doing a very good job of promoting their product and to be honest that is most of the work in cryptocurrency. A strong marketing campaign and hype can save even the most useless projects, I’m looking at you Verge.

As a final note I don’t really see any red flags with Arbitao, yes the short domain registration period is a cause for concern, but it’s also something that can be easily fixed. I was hoping for more with Arbitao diving into this review, but when you peel of the layers of fluff and marketing, Arbitao is just another lending platform that brings nothing new to the table. Diversification is a big part of cryptocurrency and maybe you are just looking a stable lending platform living up to the promises of the past, but many other next generation lending platform are offering so much more. I’d love to hear some feedback about Arbitao since it’s getting so hyped. Maybe I’m just missing the big picture here, let me know in the comment below or send me a message on facebook.

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