Panic selling post RBI ban opens door for cryptocurrency arbitrage

As the deadline approached, people sold their holdings in large enough volumes on Koinex that it resulted in a huge drop in prices for bitcoins, ethereum, and ripple, among other virtual currencies

Amid the panic induced by the freezing of bank accounts run by cryptocurrency exchanges in line with the Reserve Bank of India’s (RBI’s) direction in April, traders in India found a lucrative arbitrage opportunity to mint money like never before. It all transpired on a cryptocurrency exchange platform Koinex, which had announced that it will not be accepting any more cash deposits in its digital wallet after July 6 and will not provide a cash-out facility for cryptocurrency holdings after 2pm on Monday. 

As the deadline approached, people sold their holdings in large enough volumes on Koinex that it resulted