February 21, 2025
Yesterday's performance of PI was mediocre. Although there are still many coins from older individuals that cannot be mapped, the price has already dropped by almost half compared to the over-the-counter market. If the project team doesn’t play tricks and releases all the mined coins, the price will be even worse. The actual circulating supply of PI is a mystery, estimated to be over 1 billion, with only a few hundred million recharged to exchanges. If we calculate based on a total supply of 100 billion, it’s unimaginable for a CX project to have a total market value in the top 20; the only reason is that the actual circulating supply is low.
Recently, the overall market hasn't been very strong, the altcoin sector dropped quite a bit a while ago, and the newly launched coins have mostly opened high and dropped low, so retail investors are starting to think about making money through short selling. However, this one-way strategy definitely can't work all the time. For example, shorting PI might make some money, but if you short IP (that's right, two different coins), you could face a severe short squeeze. From $2 in a sideways trend, it spiked to $9 last night, and many people woke up to find that the price hasn’t increased much, but their positions are gone.
I wonder if anyone has noticed that in the investment market, going with the trend can only last for a very short time, often depending on how many people and funds are following. For example, previously, getting airdrops on the chain was very popular, many studios rushed in, and then it failed; for instance, with the hype around certain projects, a few stories of getting rich led to a swarm of investors, only to start losing money; the secondary market is the same. When the consensus in the market is that it should be shorted immediately after launching, it often faces huge short squeeze risks.
In fact, this pattern applies to the secondary market as well. When the vast majority of people in the market are pessimistic about this year's trends and believe the bull market is over, we should consider going against the tide. It may be difficult to maintain a unique stance in investing, but choosing to stand firm against the majority in adversity and retreating courageously at the peaks can already place you in the top 20%. What the current market needs most is our perseverance.
Thank you for your attention and likes.
