Arbitraj Has Developed a Tool to Help Investors Profit From Cryptocurrency Spreads
Startup Arbitraj LLC has been working on a set of tools designed to take advantage of the arbitrage opportunities found among the highly illiquid world of cryptocurrency exchanges. These tools are set to reveal the seem immature, nature the sector represents, while also demonstrating the opportunity for monetary gain within the emerging space.
According to a 2017 report by Business Insider, investors will be able to leverage these tools to compare the price spreads on a number of cryptocurrency exchanges. During the early stages of its development, Arbitraj shares that it has been approached by numerous hedge funds that are keen on improving their arbitrage systems.
Arbitraj has built a web-based app and Google Chrome plug-in that demonstrates the price spreads for cryptocurrencies while users browse through exchanges. So far, the trial of this app has been conducted with a group of around 500 beta users. The transaction platform aims to allow individuals to take advantage of the pricing differences rather than simply displaying the spreads.
In a more recent interview with Business Insider, Jason Flack, co-founder and developer of the Arbitraj apps, has specified that the platform calculates the “subtraction cost subtracted from the percentage spread” that users will receive.
While Arbitraj intended to be a public platform, recent developments have shifted the project towards private usage due to the fact that flooding an arbitrage tool with public users ultimately works to eliminate any profitable spreads.
Flack further stated that the market is not yet fully developed, and expects the next 18 to 24 months will bring massive spreads once regulations begin to evolve.