Teacher Big Orange wrote an article about "When can we short MYX, this pump-and-dump coin?", which is very thought-provoking and worth practicing.
Here I have summarized it briefly to help everyone digest:
(1) Many people see MYX is a pump-and-dump coin and rush to short it, thinking "it has to drop, it's just a matter of time".
That's true, but if you short too early, you might be part of their harvesting plan.
(2) MYX only has contracts on Binance, no spot trading. So where does the funding fee for Binance contracts come from?
It references the spot prices from smaller exchanges: MXC, Bitget, Pancake.
(3) How does the project team operate?
- Build long positions on Binance contracts at the bottom
- Pull up the spot prices on smaller exchanges
- Contract prices rise, funding fees turn negative
- Short positions lose 2% daily, while the project team profits
You think you're shorting, but in reality, you're giving away money.
(4) So when is it suitable to short MYX?
Wait until the funding fees "loosen" before taking action.
This usually indicates:
- Smaller exchanges start dumping, the pumpers stop pulling up
- Big holders are taking over, and the project team is preparing to retreat
Only then is it a high-probability shorting opportunity.
(5) Don't impulsively open a short position; if you don't understand the structure, don't go head-to-head with the project team.
Wait until the funding fees loosen, then it's a good time to "get on board and short".
Additional:
(1) Where can I see the funding fee rate?
In the Binance contract opening interface, search for "MYX" to see the funding fee rate.
The funding fee rate changes periodically, and there will be a countdown notification.
(2) What does it mean when the funding fee is "loosened"?
Usually during a pump period, the funding fee is:
- Stable negative: for example, -1.5% to -2%/8h, and lasts a long time (more than a few days)
In this state, the pumpers continuously pull up the spot prices, go long on contracts, and profit from the short funding fees.
So "loosened" mainly manifests in two aspects: as shown in the second image.
(3) Summary: How to determine if the funding fee is "loosened" and if one can short?
As shown in the third image.
