Let’s talk about funding rates

The hot project for everyone recently is TRB

Let’s take TRB as an example. On the chart we can see that the past few days (including the past few days) have been in a state of negative funding rates.

Negative funding rate means: short selling needs to pay a fee for long orders, which is paid every eight hours or four hours or two hours (it will be adjusted according to the market conditions at the time)

As can be seen from the chart, during the crazy rise in the past few days, retail investors continued to choose to go short, causing the funding rate to continue to be negative.

However, the 20 giant whales purchased the spot as early as an average of 13 US dollars, and accounted for more than 80% of the total circulation. As long as they do not sell the spot, it is difficult for the price to fall back to weakness relying on the lock-in in the contract market (meaning that retail investors It is difficult to influence market trends)

But what’s interesting is: after a sharp drop in the early morning of January 1, the funding rate began to turn positive, which meant that retail investors began to go long.

Next, the market may fall and kill retail investors.