I bought 10,000 UZRO at 3.5.
I saw many people went short after the big rise today.
So I wrote a post to share my personal opinion.
Personally, I suggest not to short casually. The profit-loss ratio is very low.
I first opened a short position for this coin. I shorted from 3.5 to 2.5 and stopped profit. I wrote about it in the previous post.
Later, I didn’t pay attention and found out when it suddenly pulled up.
It was more than 200 million in circulation before and had a market value of 1 billion at the opening. Now it has become 110 million in circulation.
It was too late to find out. I didn’t want to buy the coins that were pulled up, which led to missing the opportunity to hold a heavy position at a low level.
2 reasons why shorting is not recommended:
1. Market value in circulation. This coin raised 260 million dollars and was valued at 3 billion dollars. The current market value in circulation is 445 million.
The maximum market value is 4 billion.
The market value of more than 400 million in circulation should be the lowest in circulation valuation of the current king-level projects. If the liquidity was slightly better before, it would have a market value of 1 billion. Unless BTC plummets again, the cost-effectiveness of shorting is really low.
Zro has a lower market value than W in the same track or L2 with the same valuation. Normally, new coins are generally overvalued.
2. The market is not good now. Binance will not list new coins in the short term. New coins are the most attractive place for capital and hot money. After a sharp drop yesterday, many copycats have become very cost-effective. The probability of a subsequent pull-up is still very high.
