What Is NovaChain?
NovaChain has a very similar origin story to Arbitraging and it´s very clear that NovaChain has looked heavily into their business model. NovaChain initially launched their ICO back in late 2017, but under a different name, NovaLend. Back then lending platforms was the hottest in crypto after the major success of BitConnect and many tried to get a piece of the pie by making copycat platforms, many of these turned out to be scams, including BitConnect. When BitConnect pulled an exit scam in Jan 2018 the entire lending space had lost it´s credibility and many platforms scrambled to survive, but the majority just left with people investments. The term “lending” was tainted and some of the remaining platforms pivoted into staking and NovaLend was one of them. They changed their name to NovaChain and offered staking packages instead, but in practice there was no difference between staking and lending. The majority of investors were smart and/or scared enough not to invest into these staking platforms and as far as I know, no successful staking platform remains to date. One platform went in a different direction and build a platform around a trading bot with no lock in period and trimmed the MLM strategy for a sustainable model, this platform was Arbitraging and many platforms are trying to copy their business model, NovaChain being one of them.
How Does NovaChain Make Money?
NovaChain claims to have improved on their Forex trading bot and modified it to work with cryptocurrencies. Their trading bot is called REX and is also an arbitrage trading bot taking advantage of the price differences on different exchanges. Simply put arbitrage trading works by buying low on one exchange and instantly selling for higher price on another exchange. This is a normal trading practice which also works in markets outside cryptocurrencies.
It´s possible to see the actual trades done by REX on the NovoChain website, but the trades a not live. Here is a quote from their website:
“Timestamps are not from actual exchanges, they are our own. Trades are not showed in real time for security reasons.”
I for one would like to see some live trades or proof of any bot. This could all just be smoke and mirrors like the old lending platforms.
Read the full review here: NovaChain Review