Growing veggies for the fine folks of Southeastern Massachusetts, w/ a focus on nutrient quality. Always interested in the evolution of digital payments.  🎩 

for the uninformed like me, why does perps vs spot matter?

Anyone want to add or correct my response here to @ted query?

helping build farcaster | surfing @ venice, ca | eating @ gjusta / gjelina | “lucky me, lucky mud”

Anyone want to add or correct my response here to @ted query?

https://warpcast.com/ted/0x842ba39a

/ted | exploring the onchain frontier | surfing @ venice, ca | eating @ gjusta / gjelina

I don’t trade perps being in the US

Binance especially has a track record of listing perps ahead of spot.

I believe this is for two reasons, they and market makers can accumulate a position using a combination of fees and liquidations instead of just acquiring enough tokens on the open market for trading.

This is typically bearish because the price can be manipulated well enough and forced liquidations will depress price, which gives them time to accumulate also through direct purchases.

Once they list spot, they need to hold enough tokens to meet demand, if demand is high enough then they are forced to acquire more tokens dca or on dexs - which further contributes to price escalation.

The biggest super runners - think BOME - were tokens that went straight to spot and require a “feeding” frenzy of accumulation by the various cexs.

Spot for binance matters because they are still largest volume exchange and it opens new markets for tokens.

doh fc dropped the quote cast > my reply 

https://warpcast.com/brixbounty/0x61b93f6b