This type of disk refers to High, Loom, Gas, Hifi, Powr, Agld, Lina, Cyber, Arpa, Mtl (and many more), which are characterized by explosive pulls and crashes, usually 10 times at a time, and then falling back to 80% in a week. This type of opportunity is the strategy that has made me earn the most money in the secondary market in the past year. The content shared this time will be very detailed. I hope you have the patience to read and understand this strategy thoroughly, so that you can definitely seize the next opportunity like this. (Many people have left messages asking me how to do this type of target that is wildly pulled and exploded. In fact, it is really hard for me to share it. I thought about writing it more obscurely, but since I have decided to share it, I should be complete. There are many details in it that will easily make everyone lose money if they are not explained clearly.)
1. Let’s first talk about how to identify this kind of disk:
First
The biggest common point of this type of disk is that the chips are extremely concentrated. Usually one address (or a series of related addresses) will control more than 60%-70% of the total chips (some can reach 80-90% if only the circulating disk is counted). For example, loom, hifi, and mtl are very typical examples. It is recommended to use arkham and etherscan to search for the names of these tokens to get a feel for the chip distribution of the strong market (if it is not an eth token, use the explorer of the corresponding chain, for example, gas was viewed with neo explorer at the time).
second
Usually, this type of currency has trading pairs on a Korean exchange with good spot liquidity and retail investors' sentiment to chase rising prices (most of them are upbit or bithumb that only have spot but no contracts, and there are only a few cases that rely on Binance), and then paired with several exchanges with good contract liquidity (basically a combination of Binance + bybit. Many times, you see a token on Binance that only has spot starting to rise and meets several other characteristics, and then Binance suddenly announces that it will launch a contract. Basically, this type of market maker is preparing to harvest, refer to rare, loom, hifi, and the opening cyber).
third
The speed of rising and falling is extremely fast. Usually a tenfold rise is completed within one month, the main rising wave will not exceed one week, and then it will fall by 80% in less than one week. After the harvest is completed, the market will continue to fall and sell (in this case, don’t think about whether there will be a second wave of bottom fishing. Some people will abandon the market directly, such as Loom, which was directly removed from Binance after the harvest).
fourth
Usually, no one will pay attention to the small junk coins that are hoarded in spot goods. The spot goods are light and very easy to pull, and they will be pulled in a way that makes you feel puzzled.
2. The process of the dealer’s operation:
The spot chips of the banker are extremely concentrated, and very little funds can leverage the spot to rise. Although the operation process of each plate is slightly different, the general logic is similar:
first step
The banker will first build a long contract position at the bottom (I have observed that there are also bankers who do not take the long positions of contracts but only take the short positions at the top, because the spot chips themselves are already long positions, and it is easy to be discovered if too many long positions are built in the contract).
Step 2
By using a small amount of funds to pull up the market, the first wave of spot price increases is triggered, which in turn drives up the contract price. At this time, many retail investors who engage in short-term trading will see that the price has suddenly risen by 15-20% inexplicably in one day, and they will start shorting to make money from the market (so you can see that the Funding rate has a particularly interesting feature. The funding rate is usually most negative in the first wave of increases and before the final crash. After the first wave of increases, retail investors and quantitative investors are the main short sellers, while in the last wave, market makers are the main short sellers. For example, you can refer to the two recent examples, Rare and High).
Step 3
After the first batch of retail short orders are established, the market maker will use a small amount of funds to quickly leverage the spot price to continue to drive the contract price up, and further raise the contract price through the liquidation of retail short sellers (short order liquidation is a buy order), and then the retail short orders will be liquidated in succession, thereby driving the coin price to rise in succession (many retail investors are not convinced after being liquidated, thinking that the price should fall after rising so much, and then continue to short and continue to be liquidated. Let me add here that if you want to get rid of the leeks in trading, the first thing you must abandon is the thinking of "it should rise" and "it should fall").
Step 4
Until all those who don’t believe in it are blown up or retail investors start to switch to long positions, at this time, the banker must first close the long position, then open a short position at the top, and then sell the spot to complete the harvest. Pay attention to the steps here! ! ! First close the long position, then open a short position, and then sell the spot. Why are the steps here so important? Because the subsequent trading opportunities are excavated from here.
3. Trading opportunities
Let’s talk about the opportunity to short first. It is known that the dealer must close the long position first, then open a short position, and then smash the spot in the fourth step:
The two actions of closing long positions and opening short positions are essentially "sell orders" reflected in the contract, so you will see a huge trading volume at the top of the contract while the price no longer rises, and the decline is usually a series of rapid cuts, such as a 5-10% drop in 2 minutes, and then the Funding rate of the contract also begins to turn rapidly from normal to negative (in many cases it will become -3%/2h, and then a price difference begins to appear between the spot and the contract, and sometimes the price difference can reach 20%. It is recommended to look at hifi and loom, the price difference is the most obvious, and the attached picture is attached). This phenomenon occurs because the dealer is quickly closing long positions and opening short positions, but the spot has not started to smash. At this time, many "smart" people see that the price difference between the contract and the spot is so large, and they go long in the contract to take advantage of the spot spread, and this is what the dealer wants, because he needs the liquidity provided by the counterparty to open a short position (and many people see that the price difference between the spot and the contract is so large, and no longer dare to go short, and all the liquidity for shorting is left to the dealer).
Finally, the spot is going to be smashed. This step is also the easiest to detect. Remember the single large addresses and associated wallets mentioned earlier? Generally, this type of dealer will use a single large address to store most of the tokens, and then 5-6 addresses to make delivery wallets. Once you find that the single large address transfers a large amount of money to the delivery wallet, the spot is about to be smashed. For example, you can refer to the two recent examples, Rare and High. The following figure uses the recent High and Powr as examples. It is recommended to use arkham and debank for address analysis, and then etherscan for alerts, so that the mobile phone can receive notifications as soon as the transfer is made.
You must wait until all the above signals are met before opening a short position!!! You cannot open a short position just because a signal appears. The signals are:
1. Funding rate turns negative rapidly, and even spot contracts have price differences
2. Multiple and rapid price cuts
3. The main address of the on-chain banker transfers large amounts of money to multiple shipping wallets, at least in the millions to tens of millions of US dollars). This strategy must not have high leverage for short orders, and should be controlled between 1-2x and equipped with a strict and disciplined stop loss, especially in the early stage of the smash (in fact, I do not recommend entering in the early stage of the smash, because the banker will smash the market many times to explode the short orders of other retail investors. You can start with a small position when you short, and then use your short profits to roll the position, instead of going straight for a 50x all-in fomo short when you think it’s almost done).
Don’t even think it’s too late just because it’s already fallen by 30%-40%. This kind of 10-fold pull-up will cause at least 75%-80% drop, so the safest way is to wait for the trend to completely break before going short. (If a token is going to fall from 1 yuan to 0.2, you start shorting at 1 yuan, or wait until the trend breaks to 0.7 yuan, your final return will be 80% and 72% respectively. Yes, only 8% difference, so why not wait for all the signals to appear and go short in such a hurry? This is the most common mistake I see retail investors make when shorting altcoins, that is, you keep trying to go high, and with extremely high leverage, you always want to compete with the dealer for the first segment, who will you go short if the dealer doesn’t go short?)
Finally, let’s talk about the opportunity to go long
This type of long opportunity is actually harder to catch than shorting, because if you want to ambush, there will be a long period of pull-up and smashing in the early stage, and you will never know whether it is really going to pull up or really pull you down. Even in the process of rising, the dealer will continue to quickly pull up and smash to clear those long positions with 3-5x leverage, so if you want to go long, you can only trade after the middle of the rise, which is the most dangerous time. If you want to trade this part, my suggestion is to run quickly when one of the three signals above appears, and it is best to buy spot instead of long contracts, because the dealer will slightly drag the spot price when smashing the contract in the fourth step to attract the counterparty, so the time left for you to run with spot is slightly more than that of the contract.
Finally, I would like to remind everyone:
This kind of plate is not easy to trade, because it requires fast reaction, huge short-term fluctuations and the need to read the on-chain and contract data. I can only sort out the logic as much as possible to help everyone understand, but each plate is different. If you lack basic trading logic or even common sense, or cannot understand that different handling of transaction details will have a huge impact on the final result, then I don’t recommend you to try it, but at least after reading this post, you will know that if you don’t know how to do this kind of plate, don’t touch it.
