Guest Posted February 21, 2021 Share Posted February 21, 2021 Does anyone know why the price of Flare IOUs vary so much between Bitrue and Poloniex? Current price as of writing is 14 cents on Poloniex and 77 cents on Bitrue. I'm so confused. Link to comment Share on other sites More sharing options...
brianwalden Posted February 21, 2021 Share Posted February 21, 2021 Bitrue only Issued IOUs based on the 15% initial drop. Poloniex issued them based on the full 100% spread out over two years or whatever. 7strings 1 Link to comment Share on other sites More sharing options...
Guest Posted February 21, 2021 Share Posted February 21, 2021 1 minute ago, brianwalden said: Bitrue only Issued IOUs based on the 15% initial drop. Poloniex issued them based on the full 100% spread out over two years or whatever. Thank you for your response, but I'm not sure I understand. If Flare tokens can be traded between exchanges, not today I assume but eventually, how do these IOU prices get correlated once the actual tokens are distributed? The difference in price is really staggering. Link to comment Share on other sites More sharing options...
Guest Posted February 21, 2021 Share Posted February 21, 2021 is it because people can only trade the IOUs at that specific exchange? Then that would start to make sense to me. Link to comment Share on other sites More sharing options...
brianwalden Posted February 21, 2021 Share Posted February 21, 2021 Yes, any IOUs right now can only be traded on the exchange that issues them. So there's no arbitrage. The Bitrue IOUs are simple, when the first FLR airdrop is released, they'll be redeemed 1 to 1 for the real thing. I don't know what Poloniex will do. Will the only give everyone .15 of FLR for the IOU? Or will they only let people redeem 15% of their IOUs at first, and then a corresponding amount each month as more FLR is released? Or something else? Julian_Williams 1 Link to comment Share on other sites More sharing options...
Guest Posted February 21, 2021 Share Posted February 21, 2021 Thank you for your reply @brianwalden! That was very helpful Link to comment Share on other sites More sharing options...
Seoulite Posted February 22, 2021 Share Posted February 22, 2021 4 hours ago, brianwalden said: Yes, any IOUs right now can only be traded on the exchange that issues them. So there's no arbitrage. The Bitrue IOUs are simple, when the first FLR airdrop is released, they'll be redeemed 1 to 1 for the real thing. I don't know what Poloniex will do. Will the only give everyone .15 of FLR for the IOU? Or will they only let people redeem 15% of their IOUs at first, and then a corresponding amount each month as more FLR is released? Or something else? I'm thinking it is the latter, they will distribute according to the schedule. I would guess all supporting exchanges are going to do that, since it keeps customers tied in for the duration of the distribution. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now