Ratio Trading
With PulseChain launch just around the corner, unofficially announced for mid-May (UPDATE: looking for more like June now) by Richard on a recent stream (called it back in March here), also comes the buzz of zero-value ratio trading on Pulse/X/pHex. It’s quite an exciting time now that all sorts of speculation has been freed to take place, including the HEX price with assumed accumulation up until the snapshot. As usual, take all time estimates with a grain of salt, but at least we’re past the “two more weeks” and “two months” phase. The idea with ratio trading is that around launch time, there will be a pre-bridge where coins will have zero value, so they won’t have a “price” but instead can be traded on a ratio basis, such as PLS/PLSX at a 1:5 ratio. For this example, that would mean you could get 1 PLS for every 5 PLSX you trade or 5 PLSX for every 1 PLS you trade. Nobody knows what the real numbers will be, so that’s why we’re covering strategies that may apply to your situation, depending on what you hold, how much of it and what you want.
Not a financial advisor and will not give you financial advice. Everyone in the community knows you shouldn’t trade, you should stake! But if you’re thinking about it anyways, let’s take a look into a different situations that you could use to your benefit if your bags are heavier on one side or the other, with considering specific goals you may have in mind for accumulation during this exciting time to be alive.
Scenario 1
You have plenty of HEX, but want more Pulse.
Well, good news and bad news.
Bad news first: so does everyone else, pretty much. That means the market price will inevitably swing to make pHex less valuable and Pulse more valuable during this short period. We might even see 1:1 numbers at some point, who knows. There’s a lot of people who wish they bought more Pulse and even more who have Hex either staked or liquid and the emergency end staking mayhem is going to be fun to watch (if you’re staked and stay staked to reap the rewards, that is).
Good news: you will be able to get more of what you want, although it will almost certainly be at a premium.
Scenario 2
You have plenty of Pulse, but want more HEX.
Good news! According to Twitter sentiment, you will have people lined up to give you their pHex for your Pulse at a high price. Airdrops, no matter what they are, always get dumped first. That’s basically a mental model in itself.
Bad news: well, you’ll have less Pulse and if you believe that all RH products can do a 10000x in the first 2-3 years of their lifetime, you just made a trade-off. But if you’ve got a ton of Pulse and want to maximize your t-shares by picking up cheap pHex, you very well may get what you want.
Scenario 3
You have plenty of PulseX, but want more Pulse.
Bad news: you are not alone. So many others went hard into PulseX after seeing how successful the Pulse sacrifice was and I’d suspect everyone who sacrificed for both of them, sacrificed more for PulseX than Pulse. They want to FOMO into Pulse just like you, which would drive the price of PulseX down, maybe not as much as pHex, but still down even though neither have had their chance at price discovery, even tangentiality like pHex by virtue of eHex existing.
Good news: you can pull it off as there will certainly be people trying to accumulate more Pulse, creating a market for trading what they would deem “extra” PulseX for more of it.
Scenario 4
You want more of every RH coin, but aren’t confident you’ll make the right decisions on ratio trading.
That’s cool too! Delay your gratification, stop yourself from the FOMO feeling of “must do something” and sit out the ratio trading. You may be the biggest winner of all in the end.
So there you have it. If you know what you’re doing, ratio trading can be useful to add more of something to your bags before we even get a price on the coins. I’m sure we’ll hear all the updates from Richard in the coming weeks leading up. We’re almost there!
