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Thoughts on FLR price


kain

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So far I have found only two exchanges where FLR trading is available (IOU):
India's crypto exchange Giottus: https://www.giottus.com/tradeview?basecoin=INR&paircoin=FLR/INR1
Bitrue: https://www.bitrue.com/trade/flr_xrp

Considering INR/USD=0.014, at the time of writing this FLR to USD in Giottus gives approx. FLR=$0.30 (FLR/INR=21 -> FLR/USD=0.30)
In Bitrue FLR/XRP=0.58 -> approx. FLR=$0.16
I've been watching this for several days, FLR price varies significantly at least on these two exchanges ($0.16 vs $0.30)

I guess once FLR will be fully supported on more exchanges and arbitrage trading will be possible, the price will equilibrate, right?

What direction will it take... any thoughts?

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Yes, Poloniex is another exchange trading FLR (IOU), thanks for sharing.

Considering actual prices (Jan 13, 2021 at 13:10 UTC)
XFLR/USDT=0.067 - https://poloniex.com/exchange/USDT_XFLR
FLR/XRP=0.599 - https://www.bitrue.com/trade/flr_xrp
XRP/USDT=0.298 - https://www.bitrue.com/trade/xrp_usdt

This is how I imagine arbitrage trading works:

1) buy 1000 FLR on Poloniex (spending 67 USDT)
2) move 1000 FLR to Bitrue
3) sell FLR for 599 XRP
4) sell 599 XRP for 178 USDT

Of course this is not possible now since FLR deposit/withdrawal (ie. moving between exchanges, step 2) is not possible at the moment.
But in theory, I've started with 67 USDT ending up with 178 USDT.

Once FLR is supported and transactions will be available, price equalization is inevitable, right?
Or am I missing something?

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8 minutes ago, kain said:

Yes, Poloniex is another exchange trading FLR (IOU), thanks for sharing.

Considering actual prices (Jan 13, 2021 at 13:10 UTC)
XFLR/USDT=0.067 - https://poloniex.com/exchange/USDT_XFLR
FLR/XRP=0.599 - https://www.bitrue.com/trade/flr_xrp
XRP/USDT=0.298 - https://www.bitrue.com/trade/xrp_usdt

This is how I imagine arbitrage trading works:

1) buy 1000 FLR on Poloniex (spending 67 USDT)
2) move 1000 FLR to Bitrue
3) sell FLR for 599 XRP
4) sell 599 XRP for 178 USDT

Of course this is not possible now since FLR deposit/withdrawal (ie. moving between exchanges, step 2) is not possible at the moment.
But in theory, I've started with 67 USDT ending up with 178 USDT.

Once FLR is supported and transactions will be available, price equalization is inevitable, right?
Or am I missing something?

The right order is:

1) sell the FLR you already have on Bitrue FLR->XRP (1000 FLR -> 561 XRP)

2) move XRP to Poloniex

3) on Poloniex sell XRP for USDT (561 XRP -> 168.3 USDT)

4) on Poloniex sell USDT for FLR (168.3 USDT -> 2552FLR)

You now have more FLR than what you initially had on Bitrue. (You could also buy only the initial amount of FLR you had if you want to make some extra +/- 102 USDT). Your FLR is on Polo now instead of Bitrue, and that is where it will stay, until FLR network is up.

Prices will level once Flare network is up (this arbitrage opportunity will be gone) and FLR can be moved between exchanges.

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Gap is narrowing between the two exchanges. Still no arb opportunity obviously, but increasingly looks like Bitrue buyers got screwed initially. 

Price is about to meet somewhere in the middle I think. As of writing: 

$FLR = 
$0.097 Poloniex
$0.164 Bitrue

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9 hours ago, thinlyspread said:

Gap is narrowing between the two exchanges. Still no arb opportunity obviously, but increasingly looks like Bitrue buyers got screwed initially. 

Price is about to meet somewhere in the middle I think. As of writing: 

$FLR = 
$0.097 Poloniex
$0.164 Bitrue

It may be a stupid question but are they exactly the same product though? How many actual FLR will Poloniex and Bitrue give in exchange for these IOUs? Poloniex has a definition on their website (https://support.poloniex.com/hc/en-us/articles/360059061054-New-Poloniex-Listing-Spark-IOU-XFLR-) and it is not clear to me that 1 of their xFLR will actually be 1 FLR.

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11 hours ago, Troote said:

It may be a stupid question but are they exactly the same product though? How many actual FLR will Poloniex and Bitrue give in exchange for these IOUs? Poloniex has a definition on their website (https://support.poloniex.com/hc/en-us/articles/360059061054-New-Poloniex-Listing-Spark-IOU-XFLR-) and it is not clear to me that 1 of their xFLR will actually be 1 FLR.

It should be at least 1:1

But yes, this paragraph doesn’t exactly offer any clarity:

Once the Flare network launches in a couple of months, we will snapshot all XFLR balances and convert them to FLR for customers. The conversion ratio of XFLR : FLR will be dependent on the final amount we receive in the Spark airdrop.
 

I would assume it would be more as the ratio of XRP : Flare was 1 1.0X

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12 hours ago, Troote said:

It may be a stupid question but are they exactly the same product though? How many actual FLR will Poloniex and Bitrue give in exchange for these IOUs? Poloniex has a definition on their website (https://support.poloniex.com/hc/en-us/articles/360059061054-New-Poloniex-Listing-Spark-IOU-XFLR-) and it is not clear to me that 1 of their xFLR will actually be 1 FLR.

In theory, yes. In practice... not sure! I don't like either exchange but both have publicly declared support for Spark/FLR. 

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On 1/11/2021 at 9:02 AM, panmores said:

... will probably outrun XRP. :D

At this rate yeah this is probably true.

Polkadot did something similar with IOU's. Turned out to be pretty accurate too when they put things on the exchange. I'd say where it is at now is accurate, but I expect people to just dump Spark since its dropping what percentage of spark to holders for the airdrop? 15% monthly? So might be a dump for a while im not sure. Uniswap looked like a pump and dump but it' doing great now.  And its airdrop was a one time thing unlike Flare.

Edited by stickynoodle69
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  • 2 months later...

The people that are selling FLR/USDT on BITRUE, did they buy those iou flare tokens off the site themselves? What I guess I am asking is a person that has FLR coming when they distribute can not sell in advance right? That’s the way I understood it. So if that is the case then Bitrue is selling their FLR and when they are finally distributed (the 15%) thats when those people will get there FLR. Seems kinda strange, Bitrue can sell theirs in advance but an average person can not. If I understand this correctly

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