0xSun: Divergence Over pump.fun Token Issuance Is Significant, Strategies Can Be Adjusted Based on Public Sale Speed
Odaily Planet Daily reported that crypto KOL 0xSun (@0xSunNFT) suggested on the X platform that investors can develop different hedging strategies based on the progress of public sales.
If the public sale is progressing slowly, it is perfectly fine not to participate. If the public sale is moving quickly, you can participate in hedging as long as you maintain sufficient margin. The risk lies in the 24-72 hour token distribution interval after the public sale ends. "One scenario is a short squeeze caused by a price surge in the contract market; the countermeasure is to keep enough margin, which essentially lowers capital efficiency to enhance safety. Another scenario is when spot trading opens before tokens become transferable. By manipulating spot prices to drive up the market, even if the contract price does not follow, it will result in a negative funding rate. Retail investors who hedge may suffer from funding rate costs if they do not close their short positions. If they do close their shorts, the tokens they hold become an unhedged long position, exposing them to price volatility risk."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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