THE MARKET IS ONLY ELIMINATING EXCESSES — OR SOMETHING BIGGER IS STARTING?
About US$674 million in leveraged positions were liquidated in the crypto market over the last 24 hours. Most of it hit those who were betting on the upside.
But that doesn’t mean that US$674 million simply disappeared from the crypto market’s capitalization.
Liquidation happens when an exchange forcibly closes a leveraged position because the trader no longer has enough margin to maintain it.
That’s exactly why I set a rule from the very beginning of my AI Project: operate only in the spot market, with no margin, futures, or leverage.
My goal is still aggressive: turning 100 USDT into 1,000 USDT by seeking imbalances.
But taking risk in a small coin is different from artificially multiplying my exposure and allowing a fluctuation to end my position.
Right now, I keep approximately 20% of the portfolio in $IO and 80% in USDT.
For now, I won’t sell or increase the position just because of this volatility. First I want to figure out whether we’re dealing with a simple leverage cleanup or a deeper deterioration of the market.
Seeking imbalances is part of the strategy.
Getting liquidated before the thesis can play out, no.
COULD THIS BE THE SECOND COIN OF THE AI PROJECT — OR A TRAP?
We found an AI cryptocurrency valued at a little over $53 million. It has a working network, usefulness for the token, and it operates in a layer of the market that’s still not well explored. It looks exactly like the asymmetry we’re looking for. But there’s an uncomfortable question: Why is approximately 75% of its maximum supply still not circulating? The coin is the $ALLO , the Allora Network token. The short answer is this: ALLO has asymmetry potential, but we still can’t prove that all the risk involved can be calculated.
AI PROJECT: WE MADE THE FIRST PURCHASE — BUT IT WASN’T THE OBVIOUS CHOICE
Last night, we made the first real decision of the AI Project. The 100 USDT were already separated. The rules were defined. What remained was to find which cryptocurrency deserved to receive the first part of the capital. Anyone who followed the previous posts probably expected a choice between $RENDER , $FET and $TAO . It would be a natural conclusion. These are well-known projects, they have interesting proposals, and they represent different areas of artificial intelligence. But there was a problem. Our goal is not simply to choose the safest project or buy the most well-known coin in the industry.
We started the project by analyzing $RENDER , $FET and $TAO.
All three are still on our list, but we decided to broaden the search.
After all, our goal is not simply to pick the safest project.
We’re looking for a large asymmetry with calculated risk.
That’s how we found $IO , the token of io.net.
The project offers decentralized GPU infrastructure for training, processing, and other artificial intelligence applications.
What caught our attention was the combination of a functional product and a market value much lower than that of the first candidates.
This could represent greater upside potential.
But it also means higher risk.
For now, IO has only entered the radar and passed the initial analysis. Before any purchase, we still need to analyze price, tokenomics, dilution, network demand, and everything that could prove this thesis wrong.
Tomorrow early, I’ll publish our decision: to buy or not to buy. Did you already know about io.net?
AI PROJECT: FROM $100 TO $1,000 — A PUBLIC ARTIFICIAL INTELLIGENCE CRYPTOCURRENCY PORTFOLIO
REAL PROJECT I separated 100 USDT from my own money to invest in cryptocurrencies linked to artificial intelligence. The initial goal is to try to turn those 100 USDT into 1,000 USDT. Is that an ambitious goal? Definitely. Can it happen in the crypto market? It can. Is it easy or guaranteed? By no means. To go from $100 to $1,000, the portfolio needs to increase tenfold. The issue is that, when someone sets this goal above all else, they start taking exaggerated risks, making unnecessary trades, and buying any project that promises multiplication.
I’ve been following $RENDER and the question is this: the price is approximately 89% below its all-time high. Does that mean it’s cheap?
Not necessarily.
A big drop doesn’t automatically turn an asset into an opportunity. First we need to look for fundamentals, and in this regard, Render has something interesting: a decentralized GPU network focused on rendering, 3D creation, and related applications for artificial intelligence.
In other words, it’s not just another cryptocurrency trying to ride the AI narrative. There’s real utility behind the token.
Now let’s look at the weekly chart: • Current price: US$ 1,52 • 7-period average: US$ 1,42 • 25-period average: US$ 1,66 • 99-period average: US$ 3,29
The price has managed to stay above the short-term average, which suggests an attempt at recovery. On the other hand, it’s still below the longer averages. So, talking about a trend reversal right now would be premature.
The region between US$ 1,47 and US$ 1,42 deserves attention. If that support is lost, we could see another leg down. For me, a more interesting confirmation would only come with a breakout above US$ 1,65 accompanied by increased volume.
My take: it’s a good project to keep on your radar, and maybe start a small, staged entry. But I still don’t see enough confirmation for an aggressive position.
I like risk, but risk needs to come with a thesis. Buying just because it’s down 89% isn’t a thesis.
And you—do you believe this sideways movement is accumulation or just a pause before another drop?