BounceBit is a platform which is designed for Bitcoin restaking and decentralized Finance (DEFi). Its proof-of-stake model is its uniqueness of the layer 1 chain which combines Bitcoin security with the PoS.
Bouncebit was founded in late 2023 and gained a huge support from different investment ventures and Binance is one of the biggest investor in the BounceBit, Other investors include blockchain capital and the Breyer Capital.
Bouncebit's Biggest benefit that it provides to the Bitcoin ecosystem is the enhanced liquidity . Yes, It is designed to increase liquidity for the bitcoin ecosystem. Another advantage it provides is the enhanced security for the decentralized finance sector.
Today , Bouncebit launched its token with ticker "BB" on multiple exchanges including binance. One week ago Binance offered "BB" farming for the Binance users. Users mined "BB" tokens for the whole one week which ended today and Binance listed it on their platform.
Bouncebit trading price started with the low of $0.02 and hit highest of $0.6 on Binance and then stabilized to $0.3. while on Bybit it was trading much higher than Binance. We dont know why this much price difference was happened. The difference in the prices on these two exchanges remained for a while but the price then became same after some hours.
It was a good opportunity for arbitrage hunters to make profit through the scenario but unfortunately the withdrawals were blocked from the exchanges in those hours to avoid inconvenience because anyone could buy lo from one exchange and dump on the other one. This is called arbitrage trading which could have generated a decent profit if withdrawals would have been allowed during the said time.
These arbitrage opportunities arise often but you have to make sure that the deposit and withdrawals from the related platforms are working smooth so that you dont have to face any trouble during the process of moving assets from one platform to other.
Let me clear this with an example to make it more simple in case if you are interested in arbitrage trading. Lets say "BNB" price is lower on Bybit exchange and higher on Binance exchange. In this case to genertae profit you have to buy BNB from bybit exchnage and the. Move it to Binance where the price is higher. Before starting the process make sure that bybit allows BNB withdraw and Binance allows BNB deposit. If any of these is not allowed then you cannot get the desired result as you cannot move assets means you will be unable to proceed to generate profit. In this case you should ignore this arbitrage opportunity.
I am telling you as an experienced user as i have been through this in the past and sometimes i lost a few dollars in arbitrage trading due to ignoring all these points. I am telling you free what cast me money. Be Careful when doing arbitrage trading.
Thats it for today. Thanks for reading. What do you think about my today's topic? Let me know your thoughts in comment section. In the end i would like to Wish you and your family a happy day ahead. Stay Blessed.
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About Author
@coolguy222 is a crypto trader and content creator on hive blockchain. He also runs a small business of Mobile accessories and Wrist watches. He loves to make new friends.