I have been interacting with the WAX chain for some time now and have recently found a project in the play to earn genre. When looking at the exchange rate I realized that 1 GOLD token would be worth an enormous amount. Through some simple calculations, that I will show, we can see that technically 1 GOLD is worth more than 1 BTC. Of course, there are many factors involved here and due to liquidity availability it is only worth this in small amounts. Nevertheless, this was a really interesting incident in the crypto space that I found funny/exciting and hope you all will get a kick out of it.
GOLD Token
In the picture below you can see a swap on the Alcor exchange between GOLD and WAX. A few things immediately jump out at you, the amount of GOLD being swapped and the resulting WAX. For 0.00000693 GOLD you would and I did receive 1.33 WAX. Which if we look at the price of WAX is the equivalent of about $0.65 based on the value of WAX at the time of writing this. Furthermore, if you look at the swap screen a little bit more you will find the rate which is 192029.5628 WAX per GOLD. Based on this 1 GOLD is worth the equivalent of $93413.16 at the time of writing this. Of course you probably could not even sell 1 GOLD and if you could it would not be for that price. Despite this it does make a great headline and is a really interesting case of a crypto value.
Can see here the exchange of 0.00000693 GOLD for 1.33 WAX on Alcor.
The current market price of WAX from CoinGecko.
Bitcoin Value
Now from the previous section you can probably see that the GOLD token is valued higher than Bitcoin. But, for entertainments sake lets look at what an equivalent amount of bitcoin would be valued at. If we took the same amount, 0.00000693, of BTC it would be valued at $0.32. This is about half as much as the GOLD value. So one could claim that right now GOLD is worth twice as much as bitcoin.
The current market price of BTC from CoinGecko.
Liquidity
If we look at liquidity differences between BTC and GOLD we quickly realize that the value of GOLD is significantly limited. This is abundantly clear when inputting a sale of 1 GOLD to WAX in Alcor. Which gives you an end result of 1826.14 WAX with a price impact of 96.08%. Thus meaning that 1 GOLD could not be swapped for a value greater than 1 BTC.
Can see what a swap of 1 GOLD would yield in WAX.
Conclusions
Finding this unique occurrence within the crypto space was a lot of fun and I think really shows the craziness that can happen with crypto currency. If anybody has found similar incidents or wants more information please let me know.
