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Assignment: what story explains this? Please use character development and quantitative reasoning. 5 paragraphs, 2 pages double spaced.

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anyone know what's up with finex? is this accurate? from @thetokenanalyst

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(If you want to email info@alameda-research.com, we’ll give an interview to anyone who can tell the full story!)

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1/ Some people gave most of the story here. b) BTC/USD becomes rich on Bitfinex c) people send BTC to Bitfinex d) people sell BTC for USD on Bitfinex e) people withdraw USD from Bitfinex f) people send USD to other exchanges g) people buy BTC, completing the arb

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2/ This means that crypto is moving in and fiat is moving out, thus the net BTC inflows. Note that selling BTC/USDT does *not* explain this. (a) you would likely just see USDT crypto outflows; (b) the BTC/USDT arb is generally kept in line between BFX and other exchanges.

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3/ So that's most of the story. But we're missing the character development. I started at (b). What's (a)?

8:09 PM · Jan 2, 2020Twitter Web App

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Hey! Can you elaborate on character development? Are you looking to formulate an audience profile of who is completing these functions?

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I think he's asking "what event leads to BTC being rich on BFNX?"

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Market says their exchange specific risk is dropping therefore more value kept on finex

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Is it possible to know (a) without knowing the maker and taker rates/discounts/rebates that high volume traders are offered b/w exchanges? Could other exchanges incentivize traders to park BTC w/ them over Bitfinex, so when markets move, BTC becomes slightly richer on BFNX?

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okay sam -- got a theory. would love to hear your thoughts. paolo may be right that premium is a potential indicator of whale net positions. Finex was bearish @ 20k top range, bullish @ 'crypto winter' phase, bearish after (by comparison), gradually bullish as we've broken down.

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this would mean premium is caused by whales accumulating longs & seems to counter-trade price action which you'd expect of whales. i don't buy the arb argument. finex has had ~$50m avg. 1d vol. past 30d. $300m surplus of inflow:outflow over same period (+$10m surplus / day)

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