DISCUSSION ON "META" KILL NEW FUNDING OF MM: DON'T SEE THE NOISE AND GET GREEDY! 🩸
Recently, I noticed that MM is playing a very intense "game" with the Lowcap crowd: Pumping prices sharply, pulling the Funding Rate deeply negative, and the exchange immediately adjusts the fee collection to every hour.
Reading the crowd's psychology at this moment: People will be watching to LONG to not only earn the Funding fee but also ride the wave. The reason is that in the past, many have had the mindset of "stopping the train" by Shorting those with heavy negative Funding and were burned out by MM (Short Squeeze). Now, the crowd is afraid to Short, switching to Long to follow the old path of MM.
Seeing this, MM has flipped the game!
Except for 1-2 coins kept on the chart as "bait" (like $POWER last time), most of the remaining Lowcap tokens, MM will use the liquidity of the Long side (those eager to jump in for Funding) to... dump (Exit Liquidity).
The consequence is a sharp price drop, directly impacting Longs. At this point, due to the excessive number of Longs entering, Funding will drop extremely fast from deep negative to near positive levels, but the exchange still maintains the fee collection interval of 1 hour to "squeeze dry" those who are still holding.
This is my perspective on the psychological game of liquidity traps of MM during this phase. What do you think about this viewpoint? Has anyone just fallen into the "1h Funding" trap? Let's share with me! 👇
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