Concepts of funding fee in futures and $FUN
Positive Funding Fee : Longs pay to Shorts. Market sentiment is bullish and traders expect prices to go up.
Risk: Tank downwards suddenly, liquidating longs (Long REKT).
Negative Funding Fee : Shorts pay to Longs. Market sentiment is bearish and trades expect prices to go down.
Risk: Bounce upward suddenly, liquidating shorts (short squeeze).
Fun is currently experiencing heavily negative Funding Fee which means there are way too many Shorts open at this time as price is 3 folds up, and there are good chances that a short squeeze might occur.
Nevertheless the market is unpredictable and we could see the #fun tank.
