Welcome to Arbitao: The Complete Arbitrage Solution for Cryptocurrency Markets
The world is slowly embracing Cryptocurrencies as a revolutionary new asset class for investing.
For the first time ever, people of all walks of life can freely access and trade coins that represent the value of companies reinventing our financial and economic systems through the Blockchain.
Dozens of crypto exchanges have now been launched around the world to support the rapidly growing number of coins in the market.
However, lack of liquidity, price manipulation and an influx of non-professional traders have made crypto market prices extremely volatile.
This combined with the recent crash of cryptocurrency prices have left many investors questioning whether they can still generate consistent profits in the market.
High price volatility can provide short windows of opportunity to earn profits through arbitraging.
What is arbitraging?
An arbitrage occurs when there is a price discrepancy between 2 of the same cryptocurrencies on different exchanges.
If Ethereum is priced at $600 on IDEX exchange, and priced at $650 on Binance, there is a $50 (or 7.69%) discrepancy that you can earn a profit from by buying ETH on IDEX, then transferring it to Binance to sell for the higher price.
However, prices on exchanges are constantly changing, and in order to take advantage of an arbitrage opportunity, you have to go through the arduous process of creating a new account on each exchange, manually sourcing prices, making deposits and executing trades. All before the prices shift and the arbitrage opportunity is lost.
Arbitao drastically simplifies this process by creating the very first automated arbitrage trading system for cryptocurrencies.
Our “ATAO Blockchain’ combines the total capital of small investors, with the personal computing power of the ATAO community to run a decentralized arbitrage network that locates price discrepancies and executes profitable trades on your behalf.
HOW IT WORKS
Arbitao’s primary goal is to help investors profit from ‘the arbitrage spread’, a term used to describe the difference in prices on various exchanges.
The platform does this by sourcing information from the 19 biggest cryptocurrency exchanges in the world and inputting it into our system in order to automatically execute trades.
In order for Arbitao to immediately execute on arbitrage opportunities, we first create a liquidity pool. This pool of money is used to fund Arbitao accounts on all 19 crypto exchanges.
When users deposit their funds into Arbitao’s platform, they are actually contributing to Arbitao’s liquidity pool, and are later receiving the profits executed from funds used in the pool, reallocated back to the user based on the initial size of their investment.
This takes the hassle away from setting up accounts on different exchanges in order to take advantage of arbitrage opportunities.
Arbitao plans to allocate 60% of the $20 million ICO funds towards liquidity pools. As the platform progresses, user deposits will make up the liquidity pools.
Arbitao Key Features
Arbitao Platform and TAOx
Arbitao’s platform combines the total capital of small investors with the personal computing power of the ATAO community to run a decentralized arbitrage network that executes profitable trades faster than any competitor.
To begin, Arbitao creates different investment pools based on highly profitable arbitrage opportunities identified in the market. Each pool requires a minimum investment, has a set daily interest rate, and a total investment time period.
Arbitrage profits are denominated in US dollars and will be issued daily in ATO tokens.
The team will also provide a TAOx exchange so that users can convert their ATO tokens to Bitcoin directly on the platform.
Arbitrage Pairs Trading
Trading pairs represent 2 different currencies (BTC/ETH) that can be traded for one another on an exchange.
Arbitao uses advanced algorithms to spot price discrepancies between trading pairs on different exchanges. Once an arbitrage opportunity is identified, the system automatically executes the trade (Arbitao’s algorithms take into account transaction time, transaction fees, volume, order books, etc).
For example: by purchasing Bitcoin at a price of $6,855 for 1BTC on Bitfinex, and selling it on Exmo at a price of $6,962.97, the arbitrage trade nets a 1.57% profit.
Arbitao also uses advanced trading strategies like the simultaneous Short-Long strategy, and Arbitrage Chain Trading to maximize profitability.
Fully Decentralized Arbitrage Trading
With API’s, Arbitao will allow users to connect their ATAO wallets to their cryptocurrency exchange accounts. Users can then create their own algorithms and execute orders at their will, independent from Arbitao’s trading pools.
These connections will enable Arbitao to form a fully decentralized arbitraging ecosystem, where users can trade data aggregators, optimized algorithms, fine-tuned trading strategies and more.
The ATAO wallet is used primarily to send and receive ATAO Coins.
It is also used by participants to ‘stake’ a certain amount of ATAO coins as collateral in exchange for the ability to validate transactions in a new block of the ATAO Blockchain.
Participants will be rewarded with ATAO coins for securing the network.
As the platform progresses, we plan to integrate a cloud computing feature into the ATAO wallet, which will allow users to contribute computing power to enhance Arbitao’s ability to calculate and execute profitable arbitrage trades.
These users will also be rewarded with ATAO coins for their contribution.
Blockchain Consensus Mechanism
The ATAO Blockchain uses a proof of stake consensus mechanism.
In proof of stake, participants use their ATAO wallets to ‘stake’ a certain amount of ATAO coins as collateral in exchange for the ability to validate transactions in a new block of the ATAO Blockchain.
Participants are rewarded with more ATAO coins for validating transactions that help secure the network. These rewards are taken from the transaction fees charged when one user sends ATAO coins to another.
ATAO Coins grant users access to certain arbitrage services on the platform and can be staked in their ATAOwallet to earn more coins.
ATAO coins are also used as a reward mechanism for contributing computing power to the network.
Users who contribute computing power to help boost Arbitao’s ability to execute profitable trades will earn a percentage of the profits generated from arbitrages.
Latency is the delay that occurs during transmission or processing of data. High levels of latency can affect Arbitao’s ability to execute trades and take advantage of the most arbitrage opportunities.
Using Dedicated Internet Access (DIA) technologies, Arbitao is building a unique network infrastructure that will reduce latency by up to x100 and execute trades in the shortest time possible.
Arbitao provides 4 ways to profit on our platform:
- Join trading pools
- Stake tokens to confirm transactions
- Word of mouth marketing: ICO commissions and the investment affiliate program
- Simply holding ATAO coins
In order to take on the challenging task of pioneering arbitrage trading on the blockchain, Arbitao assembles a team of highly talented and successful traders, engineers and financial experts.
The teams’ previous experiences include working for leading finacial institutions and tech companies like HSBC, Merrill Lynch, Deutsche Bank, T-Mobile and Cisco.
- Milestone 1 – Q3 2016 – Q4 2016: Initial Conception
- Milestone 2 – Q1 2017: First Algorithm
- Milestone 3 – Q2 2017: First Private Investors
- Milestone 4 – Q2 2017 – Q3 2017: Algorithm Improvement
- Milestone 5 – Q2 2017 – Q4 2017: Arbitrage Software for Closed Group
- Milestone 6 – Q4 2017: Arbitrage Interface Implementation and Closed Beta
- Milestone 7 – Q3 2017 – Q2 2018: Network Infrastructure
- Milestone 8 – Q2 2017 – Q4 2018: Blockchain Integration
- Milestone 9 – Q3 2018: ICO and Launch of Platform
- Milestone 10 – Q3 2018: TAOx – Internal Exchange
- Milestone 11 – Q4 2018: Simultaneous Long-Short Strategy
- Milestone 12 – Q4 2018 – Q4 2019: Arbitrage Chain Trading via Cloud Computing
- Milestone 13 – Q3 2019 – Q4 2020: Fully Decentralized Arbitrage Trading
- Coin Symbol: ATAO
- Initial Coin Supply: 800,000,000 ATAO Coins
- Pre ICO Sales Date: 1st July 2018 (01:00:00 GMT) until 17th July 2018 (01:00:00 GMT)
- Earliest Arbitrage Platform Launch for early Investors: 20th July 2018 (01:00:00 GMT)
- ICO Sales Date: 22nd July 2018 (01:00:00 GMT) until 19th August 2018 (01:00:00 GMT)
- Min Purchase: 100 USD Price
- Per Coin:10 USD
- Pre ICO:
- Soft Cap: 20,000,000 USD
- Coins: 200,000,000 + Bonus
- Target Cap: 28,000,000 USD
- Coins: 280,000,000 + Bonus
- Coin Sale:
- Hard Cap: 48,000,000 USD
- Coins for Sale: 480,000,000
USE OF FUNDS:
Arbitraging has traditionally been a strategy reserved for those with large starting capitol or high tech software. Now Arbitao is opening the doors for anyone in the world to generate profits from price discrepancies in the cryptocurrency trading market.
Arbitao is decentralized, community driven and built to provide equal opportunity for retail investors to accrue value from risk free arbitrage trades.
We believe this is the fastest route to increasing liquidity, which overtime will reduce volatility, stabilize market prices and enable cryptocurrencies to reach mainstream adoption.