USDT/INR arbitrage opportunities through Qume in India

In response to USDT being sold at high premiums on crypto exchanges in India, Qume recently launched USDT/INR spot markets with the aim of providing USDT to our users at fair prices.

We are currently selling USDT at a flat rate of 77 rupees!

In this article, we discuss why USDT is overpriced in India and an arbitrage technique by which traders can exploit this opportunity created by Qume’s entry into the Indian markets.

What is Qume bringing to the Indian markets?

7-day volatility index of Tether, calculated from historically traded prices on India’s major crypto exchanges puts the deviation around 3–4%.

USDT being a stablecoin shouldn’t register this much volatility so frequently. A stablecoin is used as an alternative investment in the crypto markets as a hedge against the highly volatile nature of cryptocurrencies. Qume is bringing true stability to Tether in the Indian markets at the lowest prices.

The premiums associated with USDT on various crypto exchanges creates arbitrage opportunities for traders in India as we have two platforms where one currency pair is being sold at a premium and other where the currency is priced at market rates. Arbitrage opportunities are short-lived hence; it will be paramount that traders act quickly.

USDT/INR pair is overpriced in India due to low depth order books implying low liquidity on spot exchanges and with an absence of efficient market markers, even moderately valued orders can move the price of Tether on exchanges significantly.

Arbitrage opportunities will arise more often in periods of high volatility in the BTC markets as it has empirically increased pressure of buy and sell orders on the USDT/INR pair. This is when Tether becomes largely overpriced or under-priced on Indian crypto exchanges and there is a short window for arbitrageurs to make their move.

The most basic example of arbitrage will be that you convert your INR to USDT at a rate of 77 INR per USDT from Qume and have it deposited in your USDT wallet without paying any gas, exchange or withdrawal fee.

The wallet will be your USDT ERC-20 address of the exchange you wish to sell your USDT at.

Head over to https://qume.io/buycrypto/ to buy USDT at flat rates of 77 Rupees.