🔥Attention all Bombers! Big news incoming 🔥
We're about to welcome new friends!
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Join the event by commenting on this X/TG. Share your findings on:
- Bombie Twitter
(https://t.co/ok3L8J2K0m)
- Bombie community
(https://t.co/m4MmmeVI0A).
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Dates:
📅 January 18th - 25th
We will select 118 lucky Bombers to win a reward of 1000 Boxes.🎁
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Earn Bombie - https://t.co/Wwlin0MgeM
Today's to-do list: eat, sleep, and earn $Bombie!
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🔥 Catizen exceed 55,000,000 (55 million) users!🎉
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Catizen's vibe: Play for the airdrop🪂, Heal the world!🌍
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🥳 Congratulations on finding @CatteaAI !
📚 Please pay attention to our contact information so that you can check for updates anytime!
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Cattea is the world’s first “Drink to Earn” game, blending fun match-3 gameplay with 🏡 real-world bubble tea shops to create a unique “earn while you sip” experience.
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TRON Super Representatives approved a 50% fee reduction, effective in two hours. Combined with other measures this week, meme transaction fees on TRON are now among the industry's lowest, expected to boost network and meme trading activity. https://t.co/uAUmJB4wgi
Bitcoin’s market structure has entered the Seven Seas, and on-chain analysis limits the scope of the ebbs and flows contributing to BTC's price discovery.
This thread explains why exch. balances and supply age understates the liquid supply following the financialization of BTC.
Did you know?
Liquidation data from exchanges are bogus and a vast underrepresentation of actual liquidation volumes in the market.
To provide a “fair trading environment” (Bybit, Sep 2021) and to “optimize user data stream” (Binance, Apr 2021), Binance and Bybit changed their liquidation WebSocket API to push one liquidation per second instead of reporting all liquidations.
OKX also pushes a maximum of one order per second per contract, and their data does not represent the total number of liquidations.
The consequence:
Liquidation data has been wildly underreported in the past 3 years.
Open interest still behaves erratic, but “no one” is getting liquidated.
Why is good liquidation data valuable?
Liquidation data used to be a clean way to gauge risk appetite and better understand leverage ratios on exchanges. It was also a solid source to understand the impact and gravity of sudden volatility and whether or not it thoroughly cleaned the market of leveraged exuberance.
Why would Binance, OKX, and Bybit limit liquidation data?
I am guessing it’s a PR choice. In H1 2021, liquidation gore was Twitter, media, and everyone’s bread and butter. Constantly figuring at the top of liquidation leaderboards is not aligning with a strategy of attracting as many as possible to trade as much volume as possible.
By limiting liquidation transparency, exchanges also withhold meaningful information, gaining a stronger understanding of the market’s overall risk profile than any other entity. Some exchanges even have interests in investment firms that may trade on information that the rest of the market does not have.
Is it possible, and even worth it to estimate current liquidation data?
You can hallucinate and guestimate based on liquidation volume dominance and the relevant exchanges’ open interest dominance pre-API change.
This approach gives a more realistic liquidation volume estimate, but it is still wrong as it fails to account for changing behavior by market participants over the past three years while also exaggerating odd unique liquidations at certain exchanges (FTX’s short liquidation in late October 2022, for instance).
Alternatively, one may gauge de-leveraging events by monitoring changes to open interest, either in notional or relative sums to yesterday’s open interest. This approach simplifies comparing past leverage events to current ones but fails to account for traders opening new positions amidst the carnage.
Nevertheless, I hope it’s clear to all that current liquidation data is relatively worthless as pure market information.
Per my understanding it’s completely arbitrary whether the API pushes a $1m liquidation order or a $100 liquidation order at any given second. This matters because when cascades happen, liquidation engines run warmer than Bitcoin miners in a bull market.
For now, liquidation data are mostly erroneous entertainment and not actionable. I’d welcome a return to past transparency, but I guess we’ve already crossed the Rubicon.