🗣Many asked for comments on the last two token listings of Goats and Xion.
🔴Both tokens were traded in the premarket, and although I did NOT recommend entering them and did not trade them myself, people still reported that they tried to make trades and lost money.
Today we will discuss why not all tokens are suitable for trading and why trading everything will lead to losing money.
🔴The first asset - Goats: The estimated project value in the premarket was evaluated at 4 to 8 million $. Although the platform is extremely poor, it still has 10 million MAU.
People who received the drop at such an estimated value didn't even recoup their donation.
❌ Because of this, many decided not to sell tokens at a loss, receiving pennies in return, but simply held on for higher prices, thus reducing pressure on the order book.
📊 The second factor is that with a cap of 4-8 million, you can manipulate the price in absolutely any way, especially if futures are launched - it’s a paradise for margin traders with extremely low manipulation costs.
📈As a result - the price at the listing skyrocketed and didn’t even come close to the premarket prices. Everyone who made sales in the premarket and did not buy back tokens for delivery - got liquidated.
🔴The second asset - Xion: the average token estimate in the premarket was from $5 to $6.
This is not a platform but a classic project, where only part of the supply is issued as rewards + to receive rewards you need to perform many additional actions for stamping, which doesn’t always work properly.
🔴This causes stretched pressure on the order book, which is why the price at the listing does not immediately react with a sharp drop and only reaches its fair value after some time.
Due to the delayed pressure on the listing, Xion showed a pump and did not allow buying at low prices, but literally the next day the token price returned to its fair value of $5, which had been formed back in the premarket.
❗️Not everything will drop at the listing, and when we made previous trades in the premarket - we were guided by different logic and different patterns.
⚠️Not every asset will provide an opportunity to make a profit and in some cases the risks will far exceed the potential profit.
You don’t need to try to make money on everything, you should earn where there is a high probability of making a profit. It’s better to make one quality and well-considered trade than to incur losses in several random trades.
💬 If we miss some trades, believe me, it’s not because I’m being difficult, it’s just that the market doesn’t provide the opportunity to make a trade with a normal risk/reward ratio.
When something worthwhile comes up, we will definitely participate, but don't try to jump into everything, otherwise you might incur losses 🤝#goats #xion