Oobit has unveiled a new service for cryptocurrency users, which is comparable to what Skyscanner does for anyone wanting to book a flight. Oobit’s price comparison service for Bitcoin also connects local buyers and sellers so they can trade their cryptos, similar to LocalBitcoins. The multifunctional Oobit platform also offers several other features, including a KYC “pass” transferable between different exchanges, and a fiat on-ramping service.
In the crypto markets, there are plenty of opportunities to take advantage of price arbitrage between different exchanges, until now, there hasn’t been any easy way for traders to view prices at various trading venues all on one page. This is one of the solutions that Oobit provides under the name of Oobit Hunter, making it easy for traders to find the best price across various exchanges.
With Oobit Hunter, users can also search for buyers or sellers in their local area for a P2P transaction. The launch of Oobit’s service comes at a time when rival P2P platform LocalBitcoins is already seeing a decline in volume, while other platforms such as Binance are extending their P2P offering.
Oobit is also launching Oobit Pass, which allows users to undergo a single KYC verification that they can then use across different exchange platforms. It means that exchanges can eliminate the most arduous part of the onboarding services, and users can be up and running on a new exchange much faster, and without having to undergo further verification. Oobit is using advanced technologies for facial and character recognition and securing user data with military-grade encryption, according to the press release.
Other features include Oobit Direct, which allows users to purchase cryptocurrency with fiat, and Oobit Wallet, for which the company has partnered with Coinbase for the provision of secure custody services. Soon to come are a crypto debit card and a crypto-to-crypto transfer service.
Will Bitcoin Replicate the Gold Markets?
Oobit’s launch comes at a time of extreme turmoil for the cryptocurrency markets and, indeed, the world at large. The impact of the coronavirus pandemic has been felt across virtually every asset class. Bitcoin, along with stocks and gold, underwent dramatic price drops in mid-March, seemingly putting an end to the broadly-accepted theory that it was an uncorrelated asset. However, it’s since made some headway into a recovery, indicating that Bitcoin could indeed be better correlated with an asset like gold, which saw a healthy resurgence following the initial drop.
Gold prices are being pushed up by a reduction in global supply, due to several key European refineries having been ordered to close as part of wider shutdowns aiming to curb the spread of the virus. Along with grounded flights and a cessation of activities deemed non-essential, moving physical gold has become challenging. In turn, this pushes up prices.
Although the two scenarios are somewhat different, Bitcoin will be undergoing a restriction on supply when the halving happens in May, only two months from now. Could it prove to have a similar positive effect to the squeeze on physical gold?
So far, unlike gold, the price of Bitcoin hasn’t yet reached its pre-crash levels. However, the halving is generally accepted to have a positive impact on price. Industry figureheads, including Bitmain’s Jihan Wu and Bybit’s Ben Zhou, have recently confirmed their bullish views on Bitcoin in light of the halving.
Unfortunately, some analysts are proving to be less optimistic. Veteran trader Fil₿ Fil₿ stated his belief that Bitcoin will drop to $3,800 before the halving, meaning any positive price effect could be canceled out.
Regardless of which way it goes, a price comparison service means that at least users stand a better chance of getting the best deal available, irrespective of what’s happening in the markets.