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.
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: