Why are FIL contract prices different (why are contract prices higher than actual prices)?

Why are FIL contract prices different? With the launch of the Filecoin mainnet,

Why are FIL contract prices different (why are contract prices higher than actual prices)?

Why are FIL contract prices different? With the launch of the Filecoin mainnet, the storage market has entered a new phase of prosperity.

According to Filfox browser data, the current FIL price is $20.24. Why are FIL contract prices different? This is because during the initial period of the launch, there were varying degrees of liquidation due to a large trading volume, and many exchanges have started to offer discounted FIL trading pairs. However, if investors want to profit from this market, they need to buy a FIL token to short it and then sell it. Therefore, when investors want to invest in the Filecoin project, they must have a platform that provides the necessary liquidity pool or wallet services, as they cannot afford huge losses on their own. Therefore, a popular investment method in the market is to store FIL in a wallet to ensure asset security and achieve long-term holding for better returns.

Why are contract prices higher than actual prices?

According to cryptoglobe news, blockchain data analysis company Messari’s data shows that in March 2017, traders made price predictions for Bitcoin through contracts. The results showed: “At some point in 2018 (such as early 2020), we received a contract price for BTC that was 100 times higher than the actual price.” However, despite the related statistics, these two situations may be different compared to historical market conditions. The average volatility in 2017 was about 25%. Therefore, when considering the use of “estimated price,” we will find flaws in this pattern. Why are contract prices higher than actual prices?

Researcher Ryan Watkins from Messari pointed out: Assuming that our futures contract prices do not accurately calculate the intrinsic value if they are lower than the real market price, then we will measure the prices of all assets in the contract based on this standard. If the contract price does not exceed this value, it will be settled based on real-time on-chain quotes.

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