Why is the coin supply so low that borrow rates are 200% on FTX?
That’s something you’d have to ask FTX.
I guess borrow rates are so high because no other user has offered to lend at some lower rates.
I’ve offered to lend 200 MOBs at 100% on FTX … it does not seem to show up (as the rate displayed is still 200% per year), but I did. I don’t know if FTX has a page where you can see the “lend offer order book ;-)”
If you want that rate to go down, I guess you simply have to buy MOBs and offer it for lending at some small rate
it’s probably consumed and you are missing out on almost 100 % of possible interest as demand for lending is higher than 200 MOB right now…
To answer your question: As US users are restricted from buying it right now and the coin is increasing in value rapidly demand to burrow it for margin trading is probably pretty high and justifies high lending rates…
Wow you are right Madde, my MOBs are being lent.
Thank you for your kind explanation. I’m now lending my MOBs at 140% … to people who are selling them to crash the price and make a profit of their short.
The price is pretty meaningless right now. It’s the technology that is interesting to play around with.
On one marketplace with limited access you can only expect the usual pump’n’dump game.
Furthermore you should never disclose how many coins you hold anywhere. I’d suggest you edit or delete your posts…
You can see that there are currently 11.5 million mobilecoins borrowed over the course of the last 24 hours on FTX. There isn’t much you can do with a borrowed MOB other than short MOB, so I think it’s likely that Mobilecoin is pretty heavily shorted on FTX.
And it happened, interesting.
Anyone care to explain how does this works?
Is this correct?
People short MOB
Same people borrow MOB
Profit on the short and repay
well depends. Mobilecoin’s price is going up, so short-sellers would be losing money one way or another.
From my understanding you could also use burrowed MOB for margin trading on other platforms (eg ftx vs hotbit / BigONE).