~46% spread on $LSK #LSK right now
between OKX spot and futures on almost any other exchange.
The situation: OKX only supports deposits on the LSK (Lisk) network, while other platforms support deposits and withdrawals via the ETH network. All bridges are dead, and unless a miracle happens and the project team suddenly shows up to revive the bridges, things will likely stay this way.
The spread has blown out much more than it is now, but it has also been as low as around 15%, so there was plenty of money to be made and plenty to lose.
Does it make sense to enter this spread, and what are the pitfalls?
The spread will probably narrow sooner or later, but there are a lot of BUTs:
1. Funding rates:
Binance / -0.985% / 6 times a day
By**t / -0.980% / 6 times a day
Bit**t / -0.943% / 6 times a day
G**e / -0.310% / 24 times a day
M**C / -0.975% / 6 times a day
B***X / -0.930% / 6 times a day
2. The spread could widen even further and fail to narrow.
What scenarios do I see?
Positive: the spread narrows, and you make money.
Negative:
The spread widens further, and exiting means taking a loss right here and now.
Greed makes you hold on, while you continue paying funding.
The spread widens even more.
You can't stomach the unrealized loss anymore and eventually exit at a loss.
Everyone has to make their own decision.
Many people have already made money on this today, but it's also important to remember that more than $40M worth of liquidations have already occurred an amount greater than the token's entire market capitalization before this whole situation happened.
between OKX spot and futures on almost any other exchange.
The situation: OKX only supports deposits on the LSK (Lisk) network, while other platforms support deposits and withdrawals via the ETH network. All bridges are dead, and unless a miracle happens and the project team suddenly shows up to revive the bridges, things will likely stay this way.
The spread has blown out much more than it is now, but it has also been as low as around 15%, so there was plenty of money to be made and plenty to lose.
Does it make sense to enter this spread, and what are the pitfalls?
The spread will probably narrow sooner or later, but there are a lot of BUTs:
1. Funding rates:
Binance / -0.985% / 6 times a day
By**t / -0.980% / 6 times a day
Bit**t / -0.943% / 6 times a day
G**e / -0.310% / 24 times a day
M**C / -0.975% / 6 times a day
B***X / -0.930% / 6 times a day
2. The spread could widen even further and fail to narrow.
What scenarios do I see?
Positive: the spread narrows, and you make money.
Negative:
The spread widens further, and exiting means taking a loss right here and now.
Greed makes you hold on, while you continue paying funding.
The spread widens even more.
You can't stomach the unrealized loss anymore and eventually exit at a loss.
Everyone has to make their own decision.
Many people have already made money on this today, but it's also important to remember that more than $40M worth of liquidations have already occurred an amount greater than the token's entire market capitalization before this whole situation happened.
