Knowledge-Based ArticlesInformation about VICAPopular ProjectsNFT Game's Review
#NFT#Non-Fungible Token#Blockchain Game
Home/Learn

How does Arbitrage Supports ViCA Token?

ViCA platform is built on a unique and unprecedented concept of arbitrage trading. This automatic trading of virtual assets not only expands the ViCA platform but also supports its native cryptocurrency to reach newer heights in terms of value by developing new products that employ ViCA token as the main utility token.

The unique trading solution in the form of ViBOT offered by NROOTM Korea assists in arbitrage trading and taking advantage of the price difference of virtual assets on two different exchanges. Let us first take a look at how ViBOT continuously and uninterruptedly generates revenue for the ViCA platform.

ViBOT is currently operating on two exchanges to conduct arbitrage trading i.e. Upbit, the South Korean cryptocurrency exchange, and Binance the global crypto exchange. Before beginning the trading process, both exchanges must have a 1:1 ratio of ETH and fiat money i.e. USDT. This equal amount of virtual assets on both exchanges ensures the balance of assets and instantaneous execution of buy and sell orders. ViBOT does not transfer assets between exchanges to execute trades rather it maintains an equal number of ETH at the end of a trade cycle and executes buy and sell orders simultaneously on both exchanges and vice versa.

For instance, if the price of ETH falls on Upbit, ViBOT will instantly act to buy more ETH on Upbit and at the same time sell the already held ETH on Binance to pocket the price difference. After the execution of one buy order and one sell order, a cycle is completed and a percentage of profit ranging between 1% and 4% is generated. In some cases, when the market is highly volatile or there are huge discrepancies in the prices of virtual assets between the two exchanges, this profit percentage can also reach 10% or even more, which is highly commendable and far better than any other source of passive income in the crypto market.

The automatic trading solution or ViBOT always acts to increase the fiat money and keeps the initial amount of ETH the same at the end or completion of every trading cycle. The market volatility or price fluctuations doesn’t influence ViBOT or drastically impact the profit generation as it is only aimed at taking advantage of the price difference of any virtual asset on two different cryptocurrency exchanges. In simple words, if the price of any cryptocurrency isn’t synchronized on two exchanges, ViBOT can be utilized to take benefit of that unsynchronized price.

Now the question of the ViCA token comes into mind as how ViBOT or the automatic arbitrage trading solution of ViCA Foundation supports the token economy. ViCA token is already launched and listed on multiple exchanges with a total supply of 2 Billion tokens where around 1.8 billion tokens will be burnt over time in the next few months which is 90% of the total token supply. This burning mechanism will surely lead to an increase in value as with the case of any altcoin which experiences a rise in price after a burn cycle is complete, take the example of BNB whose prices jumped more than 8% in a single day after the recent quarterly burn. The revenue generated from ViBOT’s arbitrage trading is invested in the ViCA platform to improve its operations, cover its ongoing expenses and build more products that utilize ViCA Token and consequently increase its value.

Arbitrage trading is therefore the core aspect or pillar that is responsible for sustaining the ViCA platform as it not only generates revenue but also adds to the exponential growth of the ViCA token ultimately benefitting the holders.

Website | Twitter | Facebook | Telegram | YouTube | Medium

29 September 2022

Interview with DongKoo, the Founder and CEO of ViCA Foundation

27 September 2022

Earning Profit through Crypto Savings Account

27 September 2022

How does Arbitrage Supports ViCA Token?

24 September 2022

What is Cross-Exchange Arbitrage Trading? Understanding ViBOT- A unique arbitrage trading solution

21 September 2022

What is ViCA Token? The Cryptocurrency Supported through Arbitrage Trading

19 September 2022

Why Bitcoin is still running on the Proof-of-Work mechanism even after a decade?

17 September 2022

Characteristics of ViCA’s Arbitrage Trading System

12 September 2022

Some of the Common Misconceptions About the Ethereum Merge

10 September 2022

A Guide to Speed up or Cancel a Pending Ethereum Transaction

08 September 2022

Factors that Led To Bitcoin Crash and Are Still Influencing the Market

03 September 2022

NFT Game Review: Thetan Arena

02 September 2022

ViCA Token’s 3rd Burn Update | Successfully Completed on September 1st, 2022

Vica Token

ViCA Token has realized an innovative virtual currency ecosystem. ViCA creates a verifiable trust system that moves toward transparent disclosure and completion of microfinance architectures.

About
Join Us With

Copyright © 2022. ViCA Token. All Rights Reserved.