With the opening of PUPS for exchange to the Runes token PUPS•WORLD•PEACE on May 9th, there have been significant arbitrage opportunities in the market. According to practical experience and sharing from users, daily profits can reach $1,000 to $1,500.
(Previous Summary:
What is Bitcoin Runes? Differences with Inscriptions and BRC-20, Engraving Principles, Ecosystem… All Compiled)
(Background Supplement:
Casey’s Empty Talk》Bitcoin Runes’ one-month launch fails to reach £1 billion market value: Announces Seppuku Deadline)
Table of Contents:
PUPS has 4 forms
Arbitrage opportunities exist between PUPS
Practical users’ daily earnings range from 1,000u to 1,500u
Secondary trading market
Bitcoin’s Runes project, PUPS, which is also issued on the Solana chain and has been mentioned multiple times by Ansem, the king of the entire chain’s call orders, has become one of the most popular Bitcoin ecosystem projects among overseas communities this year, according to CoinGecko data. PUPS reached a price of $95 on April 13th, with a market value of over $615 million, making it the third largest BRC20 token in terms of market value, second only to Ordi and Sats, as of the time of writing.
Yes, as an intelligent person, you have surely noticed that PUPS has multiple forms. In addition to the SPL token issued on the Solana chain and the BRC20 token, there is also the Ordinas NFT – Rune Pups. Since May 9th, all three forms can be exchanged for the Runes token PUPS•WORLD•PEACE through the official website, making a total of four forms.
Since its launch on the 8th, PUPS•WORLD•PEACE has quickly become the third largest Rune project in terms of market value, second only to DOG•GO•TO•THE•MOON and RSIC•GENESIS•RUNE. The floor price is currently $0.18, with a rise of over 8% in the past 24 hours, and a market value of $161 million.
Source: GeniiData
Due to PUPS having four forms, each with a different price, and the other three forms being burnable for exchange into the Runes token, there are arbitrage opportunities!
First, it is necessary to clarify the exchange relationship between the BRC20 token, Rune Pups NFT, and the Runes token. As for the SPL token, since users can only bridge the SPL token back to the Bitcoin network for exchange before the bridge protocol supports bridging Runes to the Solana chain, the exchange of SPL tokens will be carried out through the BRC20 token at the present stage. The specific exchange ratios are as follows:
BRC20 token: Runes token = 1:100
Rune Pups NFT: Runes token = 1:17,325.36746
Next, we need to grasp the price difference between each form and also consider the transaction costs. When we find that the total price of 100 Runes tokens is higher than 1 BRC20 token, or the total price of 17,325.36746 Runes tokens is higher than 1 Rune Pups NFT, an arbitrage opportunity arises, and we can immediately buy BRC20 tokens or Rune Pups NFT and then sell them after exchanging them for Runes tokens.
If users already hold enough Runes tokens, they can also sell the corresponding amount of Runes tokens when the corresponding arbitrage opportunity arises, and immediately buy the corresponding asset to burn it into Runes tokens after the transaction is completed. At this time, the total quantity of Runes tokens we hold not only does not change, but we also have arbitrage profits after deducting the execution costs.
According to the observation of the user shaqima, among these four forms, Rune Pups NFT usually has the lowest price, followed by the Runes token. Based on his experience of monitoring the market throughout the day, the total profit from several operations in a normal day is approximately around 1,000u to 1,500u.
However, he also emphasized that one needs to be careful of snipers who will snatch the floor price of NFTs, and be cautious of people who will roll the floor price. He pointed out that there are many orders on the ladder for NFTs during the day, all of which are for rolling the floor price.
When grasping the prices of the BRC20 token, Rune Pups NFT, and the Runes token, it is necessary to compare the prices on the following trading markets:
Unisat Marketplace
OKX NFT Marketplace
MagicEden
Here is a recommended tool – GeniiData, which presents the floor prices of Runes tokens in various markets in one place. Taking PUPS•WORLD•PEACE as an example in the figure below, Unisat Marketplace has the highest floor price, suitable for selling at a high price, while OKX NFT Marketplace has the lowest floor price, suitable for buying at a low price.
Source: GeniiData
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