Author: Professor Su says
Preface
In the financial market, just like at a dining table, some prefer fish head, some love fish belly, and some enjoy fish tail. Similarly, in the crypto market, this preference is also vividly expressed. So, what should we eat?
This article symbolizes 'fish head, fish belly, fish tail' through different stages of @pumpdotfun, 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, that is, buying before prices rise.
Seed round investment in the primary market.
In @pumpdotfun, referred to as 'Senepan'.
Fish Head is Here
Characteristics:
High risk, high return: Investing in the growth process of 0-1, with extremely high multiples in between.
Suitable Audience: Only suitable for a very small number of individuals with a strong risk appetite. These individuals often conduct in-depth research but still face high risks.
Profit Potential: For platforms like @pumpdotfun, if investing within 10,000 units, once successfully launched, it may yield 10 times the return; if reaching 10 million units, it could be a thousand-fold increase.
Notes:
Due to limited capital capacity, the fish head stage is mainly the battleground for 'On-chain Kings' and 'Small Players'; big players generally do not participate unless it is their own project or they are involved in a conspiracy group.
「Fish Belly」
Definition:
Fish belly is the part most people love because it has the most meat.
In @pumpdotfun, fish belly refers to the stage of deciding whether to invest after a period of study and analysis post-launch.
Characteristics:
Low risk relative to high return: After market validation, risks are reduced and opportunities become more certain.
Ordinary Investors: Without insider information, they can only choose investments through analysis of the track.
Examples: Investors like those who chased after $ACT, $PNUT, and $neiro after being listed on @binance have tasted the sweetness.
Profit Strategy:
When investing, set aside absolute values and only talk about multiples. Fish head investors might earn 50,000 from 500 units, while fish body investors only need a 50% increase to double their investment.
「Fish Tail」
Definition:
Fish tail market refers to investors trying to profit through luck at the market's end.
Characteristics:
High risk, low return: Due to market weakness, the risk of bottom fishing is extremely high, and returns often do not match the risk.
Investor Psychology: There are always those who confidently believe they can sell at the market top but often get stuck.
Project Harvesting: The project party or market maker often conducts the final capital harvesting at this stage.
Risk Analysis:
Investing in fish tail has an extremely low return rate; unless investors believe there is still significant upside potential in the market, it is not worth participating.
「Conclusion: Eat Fish According to Odds」
Fish Head: High risk, high return, suitable for a few risk-takers.
Fish Belly: Lower risk, more stable return, suitable for most investors.
Fish Tail: High risk, low return, not recommended to participate unless there is a special market judgment.
Personal Advice: I prefer to choose 'fish body' because it has a higher tolerance for errors. For ordinary investors without insider information, fish body offers a relatively balanced risk-return ratio.
