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> offer incentives to FE (finalize early, ie release funds from the arbitrage) for months

Not too familiar with DNMs, but why would someone agree to this? Just to save a buck? Seems clear it is against your interest, good or bad reputation. What's the stated rational from seller for this, just "I want more liquidity"?

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> Just to save a buck?

Exactly, FE listings tend to be cheaper

> What's the stated rational from seller for this

I think that "bitcoins dropped in price by 30% since two seconds ago" was at least one of the reasons.

That was some of it, but often it was just because cash could be tied up in shipped product for a week or two if you didn't FE. It kept "good" vendors from being able to grow because they weren't able to increase their supply to list new product on the sites.

https://allthingsvice.com/2012/05/30/the-great-420-scam/

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