Reeeeeeeeee! $TAU price difference
A detailed look at why you can’t currently do the thing you want to do
NOTE: The writer of this article is a sarcastic arsehole, if the giant Pepe, the “Reeeeeeeeee” title did not reveal to you that this article may be riddled with sarcasm perhaps you should stop reading. For the more adventurous souls, read on.
Welcome, astute investor to the Lamden price article. No doubt you are here because your keen investment senses have spotted an arbitrage opportunity! There are different prices on different platforms, if only you could leverage this giant mistake that NO ONE ELSE spotted, you would be in a Lambo by the end of the day.
Lamden is a layer 1 blockchain which means once mainnet launched we existed as a separate blockchain to Ethereum and Binance Smart Chain (BSC). Where BSC has BEP20, Ethereum has ERC20, Lamden has LST001.
Why am I telling you this? Well to move things between chains you need a bridge. The bridge burns the token on the departing chain and mints a new token on the receiving chain (for info www.lamdenlink.com is Lamdens “bridge”).
Tokens/coins that were created within Lamden currently can’t be used outside Lamden which includes TAU. The Team is working on building the functionality that will allow TAU and tokens to exist outside Lamden.
BUT you say, “I saw it on Pancake!”. This is why I like you, you see everything! The pancake BSC TAU token was created by the Lamden team to help ease the onboarding of people to Lamden — by this I mean you can buy on Pancake and migrate across the chain to Lamden if you choose to do so.
Having this BSC contract created by the Lamden Team AND providing a way to exchange this token 1:1 with a Lamden mainnet TAU coin is what provides the value for this BSC token. As you know, anyone can make any token on BSC — in fact you will already find scam TAU with a different contract. So the value of BSC TAU comes from the fact you can exchange 1:1 for shiny new Lamden mainnet TAU when you choose by using the bridge.
“But pancake is higher!” Yes, yes it is. The total tokens available on pancake is lower than the mainnet coin, compounding this the pancake user base is significantly larger which means when the price moves it will certainly move quicker on pancake.
As mentioned previously there is no way currently to send a Lamden mainnet created token outside Lamden, so the price difference can’t be leveled out on pancake with the Lamden price. See figure below, while we have options to get tokens/funds back to BSC there is currently no direct path for TAU.
From watching these price fluctuations, I can see that as the pancake TAU price increases some investors do see a cheaper price on big.one, txbit.io and rocketswap.exchange and buy there which leads to pancake leading prices and then mainnet Lamden TAU rising after. (not financial advice).
TLDR; No you are not a genius, this ‘gap’ would have been closed days ago by any number of the 1000’s of people that spotted it when the disparity was only 5% if it was possible.
This is an opinion piece, nothing here is financial advice, you are in control of your own bag of magic beans, not me. DYOR, trust no one.