Original title: (Three Fish Eaten on PumpFun)
Original author: Professor Su
Preface
In the financial market, just like at the dining table, some prefer fish heads, some prefer fish bellies, and some like fish tails. Similarly, in the crypto market, this preference is also vividly expressed. So, what should one eat?
This article uses different stages of @pumpdotfun to symbolize 'fish head, fish belly, fish tail', exploring various investment stages in the financial market.
Fish head
Definition: In the financial market, fish head can be seen as:
· Left-side trading in the secondary market, buying before the price rises.
· Seed round investment in the primary market.
· In @pumpdotfun, known as 'filling the internal market'.
The fish head has arrived
Characteristics:
· High risk, high return: Investing in the growth process from 0-1, with extremely high multiples in between.
· Suitable audience: only suitable for a very small number of individuals who have a strong preference for risk. These individuals often conduct in-depth research but still face high risks.
· Profit potential: On the @pumpdotfun platform, if you invest within 10,000 units, you could see a 10-fold return once successfully launched; if you reach 10 million units, you could see a thousand-fold appreciation.
Precautions:
Due to limited capital capacity, the fish head stage is mainly a battlefield for 'chain emperors' and 'small players', and big players generally do not participate unless they are dealing with their own listings or involved in conspiratorial groups.
Fish belly
Definition:
· The belly of the fish is the most popular part for most people, as it has the most meat.
· In @pumpdotfun, the fish belly refers to the stage when, after the launch from the internal market, investors conduct a period of research and analysis to decide whether to invest.
Characteristics:
· Low risk relative to high returns: After market validation, risks are reduced, and the certainty of opportunities increases.
· Ordinary investors: have no insider information and can only choose investments through analyzing the track.
· Examples: Investors who chased after $ACT, $PNUT, and $neiro after they went live on @binance all reaped rewards.
Profit strategy:
· When investing, disregard absolute values and only discuss multiples. Fish head investors might earn 50,000 through an investment of 500 units, while fish body investors only need a 50% increase to double their investment.
Fish tail
Definition: Fish tail market refers to investors attempting to profit from bottom-fishing at the end of the market through a sense of luck.
Characteristics:
· High risk, low return: Due to market weakness, the risk of bottom-fishing is extremely high, and returns often do not match the risks.
· Investor psychology: There are always people who are confident they can sell at the market peak but often end up getting trapped.
· Project party harvesting: The project party or market maker often conducts the final capital harvesting at this stage.
Risk analysis:
· The return on investing in fish tails is extremely low, and unless investors believe there is still significant upward potential in the market, it is not worth participating.
Conclusion: Bet on the odds to catch fish
· Fish head: high risk, high return, suitable for a few risk-takers.
· Fish belly: relatively low risk, relatively stable returns, suitable for most investors.
· Fish tail: high risk, low return, not recommended unless there is a special market judgment.
Personal advice: I prefer to choose 'fish body' because it has a higher fault tolerance. For ordinary investors without insider information, the fish body offers a relatively balanced risk-return ratio.
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