$wlfi After the off-exchange market reached 0.4-0.5, the pre-market contract went live yesterday evening:
Binance opened at 0.55 and then went west all the way, currently at 0.269;
hype opened 2 hours later at 0.439, current price 0.272;
The high points compared to the first round of public offering 0.015 38 times; second round public offering 0.05 11 times;
With such a high multiplier, large funds (including major exchanges) are certainly no exception, starting to hedge with short positions (for this kind of public offering coin, pre-market contracts are a necessity); with such a volume of short positions, the price directly halved (50% drop, 2x leverage also cleared out)
But even so, I do not recommend going long:
1 Since exchanges have subscriptions and have opened short positions for hedging, the funding costs are definitely hard to bear; they will certainly find ways to lure longs to maintain their short positions;
2 At a price of 0.27, the FDV is 27 billion, circulating market value is 1.35-1.65 billion. Based on circulating market value, it’s not large, there could be a doubling space; but compared to the public offering price, it still has nearly 18 times, with a downward space exceeding 50%. Looking long-term, it’s definitely a chance to wait for a rebound, with significant opportunities for short positions.
However, I also do not recommend shorting directly at the current price, as there are still nearly 8 days until the listing, and the pre-market contracts are not influenced by spot prices, purely data-driven. It’s also possible to trigger a short squeeze in the meantime!
