Arbidex Economy February 1, 2018 – Posted in: News
How does Arbidex make money?
The share of profits from cryptocurrency arbitrage
As you know, Arbidex scans the market and looks for promising exchange deals that are expected to generate revenue. Relying on real-time data, not the forecasts, the platform precisely calculates the outcome of every exchange. Once the automatic cryptocurrency exchange is made, the platform will deduct a success fee of 50% from generated revenue.
We assume that an average income from one arbitrage chain is approximately 0.4%, where Arbidex takes 0.2% as a success fee.
Commission from transactions.
The basic service commission for executing an order is 0.18% at all exchanges. At the same time, the incoming commission for all exchanges is from 0 to 0.05%, since exchange platforms provide discounts because of large volumes and cooperation agreements.
We assume that the average exchange margin on the commission is going to be approximately 0.075%, including commission deduction for ABX token holders.
The Arbidex White Paper has detailed economic forecasts for adverse, average and positive scenarios (see page 15). Thus, even the adverse scenario is planned to generate enough revenue to fund operational activities and further platform development.
While evaluating the platform economics, we relied on real statistics gathered from 6 months of Arbidex MVP operation. Overall calculations show that our business model is profitable and ICO is going to be a great kick off for entering the cryptocurrency exchange market.