With the opening of PUPS for exchange with Rune tokens on May 9th, there have been significant arbitrage opportunities in the market. According to practical experience and sharing from netizens, daily earnings can reach $1000 to $1500.
PUPS comes in four different forms, and there are arbitrage opportunities between them. Based on the exchange rates provided by users, the daily earnings range from 1000u to 1500u.
In the secondary trading market, PUPS, a Bitcoin Rune project, has gained popularity in the overseas community and has become one of the most sought-after Bitcoin ecological projects this year.
According to CoinGecko data, the price of PUPS reached $95 on April 13th, with a market value surpassing $615 million, making it the third largest BRC20 token in terms of market value, only behind Ordi and Sats.
PUPS has four different forms, including SPL tokens issued on the Solana chain, BRC20 tokens, Rune Pups NFT, and the Rune token PUPS•WORLD•PEACE, which can be exchanged through the official website since May 9th.
Since its launch on the 8th, PUPS•WORLD•PEACE has quickly become the third largest rune project in terms of market value, only behind DOG•GO•TO•THE•MOON and RSIC•GENESIS•RUNE. Its floor price is currently reported at $0.18, with a market value of $161 million.
Due to the different prices of each form of PUPS and the ability to burn and exchange the other three forms for Rune tokens, there are arbitrage opportunities. The exchange rates between the forms are as follows: BRC20 tokens: Rune tokens = 1:100, Rune Pups NFT: Rune tokens = 1:17,325.36746.
By taking advantage of the price differences and considering the transaction costs, users can buy BRC20 tokens or Rune Pups NFT and then exchange them for Rune tokens to sell. Users who already hold enough Rune tokens can sell the corresponding amount when arbitrage opportunities arise, immediately buy the corresponding assets, and burn them into Rune tokens. This way, the total amount of Rune tokens held remains the same, and there is additional arbitrage profit after deducting the execution costs.
According to observations from netizen “shaqima,” Rune Pups NFT is usually the lowest priced among the four forms, followed by Rune tokens. Based on his daily monitoring and practical experience, the total earnings from several operations in a day are approximately around 1000u to 1500u.
However, he also emphasized the need to be cautious of snipers who may snatch the floor price of NFTs and be aware that some people may manipulate the floor price. He pointed out that there are many sell orders for NFTs during the day, all aimed at manipulating the floor price.
When comparing the prices of BRC20 tokens, Rune Pups NFT, and Rune tokens, it is necessary to compare the prices on the following trading markets: Unisat Marketplace, OKX NFT Marketplace, and MagicEden. A recommended tool for this is GeniiData, which provides floor prices of Rune tokens in various markets.
In conclusion, there are significant arbitrage opportunities in the PUPS market due to the different forms of PUPS and their exchange rates. Users can take advantage of these opportunities to earn profits.