Let me share with you how to short a Shanzhai coin?
In fact, long-term shorting of Shanzhai coins is basically a sure win, with a 99% probability of not losing money. After all, except for BTC and ETH, BNB, SOL, other Shanzhai coins can hardly last forever. So, how can you short steadily and happily?
Shorting without liquidation price is the most stable: try to choose a shorting method with almost no liquidation price, because the exchange and the market maker (MM) can see all the cards. For one share, shorting with 2-4 times leverage is the most stable, and the margin only needs 10-20 times the principal.
Pick high-valuation VC plates, GameFi is the best: Especially for Chinese VC plates, GameFi is the best choice, because these projects usually have obvious conflicts of interest and no long-term value. The project party usually finds an excuse to give everyone an explanation in the end.
Avoid innovative narratives and focus on cognitive biases: Don't short those projects that really have innovative narratives, and pick those with obvious cognitive biases. You can see it with just a little analysis. If you can't see it, don't short it.
Sniper bluff and acting project parties: Specially sniper those who like 618ff, have problems both inside and outside, love to mix Chinese and English in their speeches, and have a vision to "create value", but in fact they are all acting and soft-playing. The project is structurally flat. This type of project party is easy to see through. The smell is too strong, no need to say more.
Hit the dog when the trading volume drops: When the project's trading volume begins to decline, it's time to hit the dog when it's down. Because the contract between the project party and the market maker is time-limited, once the time is up, the water begins to recede.
Find the pain points of investment institutions: Now is not a simple lock-up and delivery era. The lock-up period is too long. Everyone is linked to the primary and secondary markets, and hedging operations are already standard. Grasp their pain points and start accurately!