Topic: What's 3x Long Bitcoin Token (BULL) (Read 160 times)
It's a FTX leveraged token. Read more about it here - https://help.ftx.com/hc/en-us/articles/360032509552-Leveraged-Token-Walkthrough
I never thought that this token is listed on binance, I can't find the real use of token as well, if it's more like a leverage token then it will be good for traders, I remember it's two type, 3x short Bitcoin token
Not sure about this since I'm not that expert in trading but I think this is how it works:
I think they can also be called as leverage tokens wherein if you buy a Bull token (3x) it means that every 1% increased of price of bitcoin the Bull token will increase 3x and if the price of bitcoin drops 1% the price of Bull token will reduced 3x.
Just correct me if I'm wrong.
I think they can also be called as leverage tokens wherein if you buy a Bull token (3x) it means that every 1% increased of price of bitcoin the Bull token will increase 3x and if the price of bitcoin drops 1% the price of Bull token will reduced 3x.
Just correct me if I'm wrong.
Definition: 3X Long Bitcoin Token (BULL) is an ERC20 token which seeks a return that corresponds to 3 times the daily return of Bitcoin.
Disclaimers
1. None of this is investment advice.
2. Much of the below analysis ignores any difference between futures and spot prices, and ignores the effects of fees.
3. While your account's holding of a leveraged token cannot be liquidated, the leveraged token itself theoretically could be. Leveraged tokens greatly reduce the risk of liquidation but cannot make it fully impossible; if markets instantaneously gap down 50%, there is nothing that can stop the +3x leveraged position held by the leveraged token from getting liquidated. In addition, while leveraged tokens attempt to avoid getting liquidated, this does not prevent them from being able to suffer heavy losses.
4. Leveraged tokens can have unintuitive edge cases. The below is a summary of their common behavior.
Users should trade Leveraged Tokens at their own risk.
5. Leveraged tokens, like the rest of FTX, are not being offered to US users
There is also other coins like it:
Buttom line it give you the return x3 (leverage x3), high risk which IMO not worth it unless you're a total gambler not a trader.
Disclaimers
1. None of this is investment advice.
2. Much of the below analysis ignores any difference between futures and spot prices, and ignores the effects of fees.
3. While your account's holding of a leveraged token cannot be liquidated, the leveraged token itself theoretically could be. Leveraged tokens greatly reduce the risk of liquidation but cannot make it fully impossible; if markets instantaneously gap down 50%, there is nothing that can stop the +3x leveraged position held by the leveraged token from getting liquidated. In addition, while leveraged tokens attempt to avoid getting liquidated, this does not prevent them from being able to suffer heavy losses.
4. Leveraged tokens can have unintuitive edge cases. The below is a summary of their common behavior.
Users should trade Leveraged Tokens at their own risk.
5. Leveraged tokens, like the rest of FTX, are not being offered to US users
There is also other coins like it:
Buttom line it give you the return x3 (leverage x3), high risk which IMO not worth it unless you're a total gambler not a trader.
I just have seen this coin in CMC with a price above $14k which is higher than BTC. I know there were some coins which was priced more than BTC.
But what about this coin? This coin have a good volume and listed on Binance too with a volume of $2,505,949 while the total supply us very low.
But what about this coin? This coin have a good volume and listed on Binance too with a volume of $2,505,949 while the total supply us very low.
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