An automated bot has quietly captured minor arbitrage opportunities in short-term cryptocurrency prediction markets, earning nearly $150,000 in profits. Arbitrage involves exploiting price differences of the same asset across different markets. Utilizing artificial intelligence, the bot identifies small price discrepancies and swiftly converts them into profitable trades. Crypto prediction markets, where investors speculate on the future values of various cryptocurrencies, have gained significant popularity in recent years. These markets are highly volatile, making it challenging for human traders to capitalize on minor price differences, but AI’s rapid analytical capabilities make this feasible. This automated bot offers retail traders a chance to leverage these small inefficiencies, generating easy profits. However, the use of such technology raises concerns about market transparency and fair competition, as these tools are not universally available and may disproportionately benefit large investors. As AI capabilities continue to improve, more automated and faster trading methods are expected to emerge in crypto prediction markets, potentially altering their structure and functioning. Investors should carefully consider both the advantages and risks of such technologies to make informed decisions.
Source: coindesk
