Despite Polymarket unveiling new fees for the 15-minute crypto markets in an apparent effort to curb high-frequency algorithmic trading, the probable trading bot that managed to turn a $300 investment into more than $400,000 in profits appears to have continued its winning streak.
Specifically, the profile designated 0x8dxd has made an additional 700 predictions between January 6 and press time on January 9, increasing its one-month profits from $438,000 to nearly $512,000, and its all-time profits to over $550,000 on the prediction market.
Polymarket statistics for 0x8dxd. Source: PolymarketFurthermore, the trading bot’s strategy appears, for the time being, unchanged as it has continued making directional bets for major cryptocurrencies with the most common predictions ‘objects’ being Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and XRP.
Previously, it has been suspected that the system leverages the slight lag between the data from major digital assets exchanges such as Binance and Coinbase to place its bets after the likely outcome has been revealed, but Polymarket’s odds are still priced as being at approximately 50:50.
Polymarket unveils new 15-minute market fees
Still, it is worth noting that it remains uncertain if the strategy can be replicated given the announced changes to Polymarket. Additionally, it is possible that the trading bot could soon become significantly less profitable.
Indeed, the prediction market unveiled that it shall be collecting additional fees only in 15-minute crypto markets and that it will redistribute some of the proceeds as rebates to makers that ensure liquidity for the platform.
The system’s structure appears to be targeting the strategy likely employed by the highly-successful trading bot as the new ‘tax’ will be highest at 50% odds, and will be growing substantially smaller toward the extremes of 0% and 100% probabilities.
With that being said, the fees themselves will be rather low even at their highest values as they will never exceed 1.56%. According to Polymarket, the change is aimed at ensuring the fast-moving markets remain ‘deeper, tighter, and easier to trade.’
Featured image via Shutterstock
Source: https://finbold.com/polymarket-trading-bot-that-turned-300-into-400000-is-now-up-this-much/
