What goes up must come down?

What goes up must come down? Huge sell-off on tech stocks overnight, but BTC was already feeling the pressure since a couple days ago. The story starts on Wed with options traders noticing large BUY-PUT flows. Then we saw on-chain analytics indicate mega mining pools moving coins to exchanges. Some FUD around a Bithumb raid added fuel to the fire. So it’s certainly not a fundamental change but that also doesn’t mean we automatically buy the dip. Sometimes doing nothing is better EV.

Wouldn’t be shocked to see 9200 OR a quick recovery to 11k. Around $250m worth of liquidations in the past 2 days with a dip in OI to $4b. Indicates traders are sitting on the sidelines.

Yield Farming

In the farming world, a dump like this hurts. But we are increasingly bullish in the alts space as channel checks show many markets (like China and Korea) are far behind. This could change with the introduction on Tron-based liquidity farming, SUN. With unlimited capital coming from Justin Sun (speculation), it certainly won’t be a rug-pull. No info yet on APYs.

Serum ($SRM)

SERUM made big moves this week with 1) Jump Trading committing as an LP 2) SBF making a play to synergize with SushiSwap. For those who don’t know, SUSHI is really the only survivor of all the “food” farming platforms that launched this week (Hotdog, Pizza, Kimchi.. you name it). But SUSHI is a different animal as it’s a legitimate play to steal liquidity from Uniswap, where the community shares the fees instead of them going to VCs. The easy way for Uniswap to counter this is to issue their own token as rewards.

Warning for Rebase Tokens

Want to leave you with a warning on any new tokens that have “rebase” functions. AMPL was the first to do it as an SoV play but has mostly been used for musical chairs. Steps are 1) pump the price way above target, 2) rebase function causes # of tokens in your wallet to increase, 3) dump the tokens and repeat. The scarier issue is when copycats mess up the code. SYFI was the latest disaster as a 7600% supply increase occurred @ its first rebase.

Thanks for reading What goes up must come down? Written by Genesis Block’s Head Trader Charles Yang. If you found this information useful don’t forget to subscribe to our newsletter and checkout some of our other content below:

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