1. High initial volatility
When a token is listed (e.g. on Binance, Coinbase, etc.), there is usually a strong pump due to the massive entry of retail buyers.
But afterwards, many early investors (private sale, seed round, IDO) take advantage of liquidity to sell their tokens → this usually generates a strong drop after the initial hype.
2. Futures and shorts on new listings
Some traders do try to open short positions in futures right after the listing.
The logic is: whenever there is initial hype, massive sales will soon follow.
BUT: it's not always like that. Some tokens maintain momentum if they have strong backing, media hype, or exchange support (e.g. ARB, OP, or SUI had prolonged rises).
3. Key risks
Extreme volatility: there can be a spike of +50% before falling – if you enter short too early, you can get liquidated quickly.
Not all exchanges open futures from day 1, so sometimes it’s not possible to apply this strategy immediately.
Projects with strong community / VC backing can maintain price higher for longer, burning those who enter short too soon.
📊 Strategies that some traders apply
Wait for the first wave of hype (initial pump), and look for a short entry when signs of exhaustion in volume or technical resistance appear.
Use a tight stop-loss, because quick wicks can liquidate positions.
Instead of futures, some prefer spot trading: entering very early and selling quickly on the first strong rise ('sell the news').
The idea of shorting new tokens right at the listing may sound tempting because many fall after the initial hype, but it is a very risky strategy. Sometimes the token rises an additional 20-50% before falling, and that’s where many shorts lose. The most prudent thing is to observe the behavior in the first hours/days, and only then decide if there is a real opportunity to open a short.
