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Many people use exchanges for arbitrage. Exchanges benefit from arbitrage since they take a fee out of every trade and because they want their prices to be clos
by josu 8y ago
Many people use exchanges for arbitrage. Exchanges benefit from arbitrage since they take a fee out of every trade and because they want their prices to be close to the international price of the asset.
This trade would look exactly the same as an arbitrage move.
- zaroth 8y agoI still maintain that letting the assets come in and leave on a different blockchain within 24 hours is akin to a “RTFM” level mistake. If exchanges are enticing arbitrage through insanely quick setttlement and clearance times on the order of 2 hours after closing a position, they are just playing with fire. If there wasn’t an actual trade, just transfering in and out, not chaining the transactions is similarly RTFM. If the facts are as I understand them, I think the exchange bears a significant portion of the blame. It’s like the story a couple weeks ago where Deutche Bank accidentally approved a wire transfer for $35 billion dollars.
- josu 8y agoExchanges are definitely playing with fire. Most crypto exchanges have probably more attack vectors than employees. Mitigating them is usually a tradeoff between security and UX. The most trustworthy exchanges don't even list shitcoins like Bitcoin Gold.