STEEM Arbitrage Opportunity? Massive Profits?
Is it possible to sell STEEM at $2.30 right now?
So we go find out the current price of KRW and it is at $2.30 USD!
I saw this yesterday on Bithumb and though it wouldn't last very long and stabilize right away. It hasn't stabilize and is still going strong.
Take a look at my screenshot. See the spikes. That is because the software that calculates the average price over multiple exchanges is finding an outlier. There is no human behind the calculation and the software is confused. The outlier is making and breaking a threshold to be excluded or included Bithumb STEEM price in the calculation. Normally when the exchange is excluded is because it is not real. There usually is an anomaly with the exchange like the wallet is broken or the exchange is down. In this case, it looks to be real because I can't find any reports that there is an issue with Bithumb and the volume is sky high.
Let's go over to Coin Market Cap and we find that STEEM trading price on Bithumb is excluded from the total calculated price because the software thinks that the numbers are not real. Just look at the volume.
Bithumb is handling about 45% of the world's volume in STEEM trading!
What does this mean?
If you have STEEM, you can sell STEEM on Bithumb for a profit and buy something else. Then move that to another exchange that trades STEEM and buy it up. Now move it back to Bithumb to sell for a profit again. You could do this perpetually until the price stabilizes. This is called Arbitrage.
What is happening is the exchange has a severe shortage of STEEM and there is more demand for STEEM than there is a supply. Buying STEEM elsewhere and moving it to Bithumb helps to fix the temporary STEEM shortage.
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That was really informative and amazing ...
although there are lots of arbitrage opportunities in which you can't use the difference of prices between exchanges because the buy and sell prices differ a llllot...I mean you expect to sell steem in one and buy it back in another exchange..but the actual price wasn't the sell price in the first..but it was buy price and you have to sell it very cheaper..then you get trapped...
I wish I've explained it understanably... but arbitrage works in very rare situations...
Well, that was a catchy headline that caught me into this, wasn't it?
Good information, thank you .. I invite you to see my last post. Greetings
Good news steem is rising