Today, I would like to share with you how to short a meme coin?
In fact, long-term shorting of meme coins is almost guaranteed profit, with a 99% chance of not losing. Because apart from BTC, ETH, BNB, and SOL, most other meme coins won't last long. So, how can we short safely and profitably?
1. Shorting without liquidation price is the safest: Try to choose shorting methods that do not have a liquidation price, as exchanges and market makers can see your position. Generally, shorting with 2-4x leverage is the safest, with a margin of about 10-20 times the principal.
2. Focus on overvalued VC projects, preferably GameFi: Especially those projects backed by domestic VCs, GameFi is the best target. Most of these projects have serious conflicts of interest and hold no long-term value, and eventually, the project team will find an excuse to explain to everyone.
3. Avoid innovative narratives and focus on cognitive biases: Do not short those projects that are truly innovative; instead, choose those with obvious cognitive biases. A little analysis can reveal this, and if you can't see it, then maybe you shouldn't short.
4. Target bluffing and theatrical project teams: Specifically look for projects that like to bluff and have internal and external issues, mixing English and Chinese in their speech, full of "visions" and "creating value," but in reality, they are just acting. Such projects are easy to see through; the signs are too strong to elaborate further.
5. Strike hard when trading volume declines: When a project's trading volume starts to decline, it’s a real opportunity to short. This is because the contracts between the project team and market makers usually have a time limit; once the time is up, the water starts to recede.
6. Identify the pain points of investment institutions: This is no longer a simple era of locking and unloading; long lock-up periods and interlinked operations between primary and secondary markets are already common. Find the pain points of investment institutions and strike precisely to make effective profits.
