MYX is the token of perpDEX, recently launched perpetual contracts on platforms like Binance. After going live, it directly entered the price increase rankings, and I started paying attention to this coin from August 3rd.
Reasons for deciding to enter the market.
The market value of MYX surged from 15 million USD to 50 million USD, with a 24-hour trading volume reaching 2.5 billion USD. This trading volume far exceeds its market value, and experienced players know that this indicates strong market speculation, most likely driven by large players and algorithmic trading (Binance traders), leading to rapid price surges in the short term.
Furthermore, Binance AIalpha has provided additional exposure for MYX, which is itself a low market value token, initially around 10 million USD, making it easier to be driven by funds. This attracts the attention of short-term traders.
Analyzing the tactics of traders: low circulating market value and short squeeze mechanism.
MYX has a relatively low circulating market value (initially about 10 million USD), and the liquidity pool is deep, making it difficult to be smashed down, providing a foundation for price stability. Low market value tokens are easy to be manipulated by funds, especially in high-leverage contract markets, where large players push up prices through short squeezes (liquidating short positions). In the past two days, the Binance contract market liquidated 7 million USD in long and short positions, driving up the price.
Rate trap: Due to extreme upward pressure, a phenomenon of overbuying naturally occurs, and a large number of shorts flood in.
Its short rate reaches 2% and updates every hour. This concept may be unclear to many friends, so I'm here to briefly explain it.
If you open a contract with 1000u at 10x leverage, it will deduct about 200u per hour. So if holding a short position for 10 hours, that's 2000u in fees. Many people can't withstand this even if the price just consolidates. This is a very obvious trap for inducing shorts. Seeing this step basically allows one to understand the subsequent actions of the market maker.
So at 11:00 AM on the 4th, a long position was opened at a price of 0.19u, and by the evening it directly surged by 90 points.
Due to its high rate trap, I interacted with everyone, and the market clearly showed a predominance of shorts. The market maker's plan has already been set in motion. From the perspective of the traders, this is the desired effect. The next step is definitely to continue to push up, blow up the shorts, and keep eating rates.
When I woke up this morning, it had already surged by 127 points, which is obviously not enough investment for this game. Clearly, the rate shorts have not been harvested yet, and the rates haven't been fully realized. The nature of taking and eating has already been exposed. The game has been set up, so follow the greed of the market maker and continue to move forward.
At noon, it surged directly to 369 points. This major harvesting is about to reach a price of 1u, which is very dangerous. The mentality of many retail investors is to run if it exceeds 1u, and to short it when it exceeds 1u. However, the market maker has a firm grip on your psychology, and large players also know this. Therefore, retreating before the critical point is a wise choice. When it retraced to 0.9, it was a quick exit, but the overbuying phenomenon is serious, combined with many shorts being blown up. I felt that the opportunity to enter hadn’t yet arrived, so I steadied myself to prevent the induced short trap set by the market maker. I then shorted at 0.72, but clearly the grasp of the situation was not very large at this time. A small position was taken for speculation, and when it dropped below 0.6, I exited directly, as shorts were entering one after another.
Subsequently, look for opportunities in the empty position, but from the facts, the greed of the market maker and harvesting are far from over.
