UK and Japan-based crypto startup Sumo Signals has recently raised $5M in a funding round led by Hong Kong-based OnDeck Venture. The innovative startup provides AI-powered arbitrage trading indicators that help crypto traders execute profitable trades.
Andrew Smith, CEO, and co-founder of Sumo Signals, says, “Crypto trading is gaining momentum with more users and traders jumping on the bandwagon. Our vision is to build a robust product that enables crypto traders to log in to our dashboard, select trading strategies based on our proprietary AI-powered algorithms, and maximise their profit while minimizing the risks simultaneously. In addition, these funds will allow us to fuel further product development and hire talent.”
For those who are not aware, crypto arbitrage trading is a trading strategy where investors capitalise on slight price differences of a digital asset across multiple markets or exchanges. In its simplest form, crypto arbitrage trading is buying a digital asset on one exchange and selling it (just about) simultaneously on another where the price is higher. Recently, Mosdex, a bitcoin arbitrage platform situated in Helsinki, Finland also snapped $20M in funding.
So, how does Sumo Signals work? Well, its AI robots sift through hundreds of cryptocurrencies in search of patterns that signify buy or sell signals. According to the company’s CTO, Naohiko Yamamoto, Sumo Signals is the first cryptocurrency trading platform that uses a sophisticated AI algorithm to find the most promising Signals even in a bear market.
These AI robots have been designed to increase profitable trading opportunities and decrease average losses. The AI Robots open positions with sophisticated AI abilities and filter them using AI Predictions and other in-house metrics.
The AI platform can consider multiple variables for several different currency pairs simultaneously. Moreover, the speed at which they make decisions and act on them gives them an edge over manual trading.
Samson Lee says, “Crypto industry is witnessing massive interest from investors and traders worldwide. This has led to tremendous innovation in technology and applications being launched in this space, especially with the integration of AI-based technology. We are happy to see one of our portfolio companies is leading this change with its innovative offering. We are confident that this investment will drive the Sumo Signals team to innovate further and bring more such ideas to the market.”
Developed by Japanese engineers, Sumo’s AI algorithm can take full control of the entire trading process, right from analysing the market to exiting a position, thus ensuring that traders will profit from the currency price actions round the clock.