Why The Recent Price Pump?
Hello everyone, Carlos here, today we experienced an unexpected price pump which confuses a lot of people (me included), here I’ll share what happened, and how it affect our holders.
What happened here is pretty simple and straight forward, we updated our Coingecko information with Finexbox and Coinsbit exchanges (logo was updated too!) and today these actions becomes effective, which result in the new price shown by Coingecko (also BEP20 contract and staking platform were updated with the new price automatically, confusing a lot of people).
This means that now Coingecko uses more markets to retrieve the price of our asset, returning an average as the current price, this is why the price pumped everywhere, but you can only sell at that price on Finexbox, not Pancakeswap.
You can easily check on Coingecko what is the price of the asset by market, trading volume, etc.
How does this affect to Liquidity Providers?
In the following example, I’ll expose a random transaction in which liquidity was added to the SPORE-USDC pool, as you can see (comparing the 50/50 amounts of each asset), the calculation that the swap made is based on the Pancake v1 price (and not from Coingecko), meaning that all staking and swap operations remain the same, they are not affected by this price change (even thought BSCScan uses the contract price to display it).
Final notes
This is a normal behavior (it just took us by surprise), more markets will be joining eventually (or chains/networks), making the price to always be changing, but you have to remember that you can only trade an asset by a certain price in the market that its listed at that price and no other (for example, you can’t sell at $16 on pancake), then arbitrage will regulate the market itself once volume increases.
Official Links
- Official Site: https://spore.engineering
- NFT Store: https://nft.spore.engineering/?section=store
- English Telegram: https://t.me/spore_engineering
- Spanish Telegram: https://t.me/sporeES
- Stake Dapp: https://stake.spore.engineering/
- Swap: https://swap.spore.engineering/
- Trello: https://trello.com/b/buIpsDB7/spore-bsc
- Twitter: https://twitter.com/spore_eng
- Github: https://github.com/spore-engineering
- Discord: https://discord.gg/aPcU54J5
