Arbitrage is a trading strategy that guarantees a profit thanks to the purchase of an asset on a market where it is cheaper, with the simultaneous resale in a market where it is more expensive.
For example, it's like buying Bitcoin on an exchange where it is sold for $ 19,100, and then reselling it for $ 19,200 on another exchange. For Automated Trading, bots are used that monitor exchanges to look for yield differentials, buying the asset on one side and reselling it on the other.
There has been a lot of talk lately about Arbismart: is it legit or a scam? Is it a Ponzi?
Arbismart is owned by Arbismart OU, a company which is regulated by the Financial Intelligence Unit (“FIU”) in Estonia under license number FVT000353. The company is based in Tallinn.
It seems that there is no recognized Arbismart company on the Consob website. Although Arbismart basically qualifies as an arbitrage company.
But how does it work?
-the customer pays fiat money or cryptocurrencies into the Arbismart wallet which carries out exchange operations of your funds (in the desired cryptocurrency)
- then begins to monetize thanks to arbitrage
The opinions of Arbismart online are quite mixed, although on Trustpilot it can boast a rating of 4.3 out of 5 but we know that reviews can be "bought". Users who complain about this company point out that:
- after some time it is no longer possible to access the account
- is a scam and all the people at the top of the company are actually fictitious
- positive reviews are sponsored posts
- fast withdrawals are not possible
According to what Arbismart says, the platform appeared in some authoritative media: above all, the presence of Arbismart on the Nasdaq (one of the US stock exchanges) caught our attention. But is it really so? In reality it is an article that was not written by Nasdaq and its operators, but which falls within the section of the contents produced by the so-called Guest Contributors, i.e. by authors outside Nasdaq. The article in question, which dates back to November 27, 2019, is written by Dennis Muller, an Arbismart executive and the article does not explicitly mention Arbismart but only passive income in finance.
The firm also pays referral fees on invested funds through a unilevel clearing structure, limited to five team levels:
Level 1–5%
Level 2 to 5 (Not specified)
A 25% back-office balance bonus is also offered when Arbismart affiliates reinvest returns instead of withdrawing. The platform's RBIS (ERC20) token is also useless because it has no use outside the Arbismart ecosystem.
Owners already have 450 million tokens generated and stored in their wallets. They accept "liquid" currency (EUR) and distribute returns in RBIS tokens, which is essentially useless.
It is evident that platforms of this type are exclusively Ponzi scheme that try to scam users. Arbistar (closed by Consob) orbits in the same sector.
This is just my opinion, if anyone has had experiences with these platforms... write it in the comments. Thank you all for your attention.
