You're not arbitraging anything." Dan Held says the price gap between crypto exchanges isn't arbitrage, but a premium traders are paid for taking on counterparty risk "I was…
Original source excerpt
"You're not arbitraging anything." Dan Held says the price gap between crypto exchanges isn't arbitrage, but a premium traders are paid for taking on counterparty risk "I was talking to some arbitra…
"You're not arbitraging anything." Dan Held says the price gap between crypto exchanges isn't arbitrage, but a premium traders are paid for taking on counterparty risk "I was talking to some arbitrage traders in crypto, and I'm like, you're not arbitraging anything." "What you are arbing is the exchange counterparty risk, because you're putting funds at risk, and there's a small premium or discount because of that risk." "To do that trade, you have to have funds on every exchange at all times. Both the token that you're trying to arbitrage and dollars of some sort." "We saw this with Mt. Gox and Bitstamp. Back in the day, coins on Mt. Gox traded higher than Bitstamp. The reason why is that Mt. Gox's fiat legs, the ability to wire money out, had withdrawal issues. The only way to get your money out was to buy Bitcoin." "And what we learned is that there's no arbitrage at all there. It was counterparty risk."
AI context is not available for this statement. The original source can be read independently.