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Taking advantage of that hypothetical "moonshot"

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by COINS NEWS 164 Views

Hi everybody,

I have been pondering something lately and I thought I would post up about it to see what others thought about a hypothetical (but has happened in the past, not to me) situation where you hit that illusive "moonshot".

So, you get in super early (liquidity just added) into a meme coin. No white paper, no website, in fact not even a description of what the coin will even do. You just buy it as a gamble, knowing full well that you may get rugged, and are aware of the risks.

So, your $10 investment actually ends up getting you 5% of the entire supply of the coin. Sweet, you are the biggest whale in a coin that nobody knows (or cares about), and your wallet address is happily sitting there at the top of the explorer, only trumped by the creator's wallet.

Great, so you sit back and wait. First day, you double your money, in fact it goes up 10x and you are sitting on a $100 value in the coin. Not bad for 5 minutes work eh. Then the next day it's pretty stagnant, doesn't do a lot but also doesn't get rugged and doesn't crash hard. Social media is ramping up, and people are getting excited about the coin generally over different platforms.

Day 3 is different. You wake up and your holding is worth $200K. Oh my god. What the hell do I do. You look at selling a large portion but then it hits you. The liquidity just isn't there to do so. Your sell of 10% of your holdings has a 400% price impact. This would completely crash the coin, ruining your chance of selling out. And there is also a moral dilemma, knowing your sale would crash the coin for the rest of the investors too. The old saying of "all is fair in love and war" doesn't cut it for you, you can't stop thinking of those people that may be losing their life savings or a significant chunk of their net worth. Only invest what you can afford to lose, especially in shitcoins, but you know for a fact that people do and can't get it out of your head.

Then you sell a portion, enough to net you $10K. Because having done that, even if it gets rugged or goes to zero, you have made a decent profit out of this little investment. It crashes the coin by 20%, but the markets can suck that up surely. People "buy the dip", and the price recovers within a couple of hours. Then you think, I can do it again, at what point do people get bored of "buying the dip" and let the price drop?

You wake up next day, and even though you have made $10K out of it, your holding is now worth just shy of $1M. Holy crap. I'm rich, or rather I would be if the liquidity was there to actually sell it for that much. You could take $200K, and crash the coin completely but this wipes out your other $800K value, and ruins everything for the other holders.

So, what do you do?

Do you crash the coin to make your $200K? Do you wait for more liquidity, knowing it could rug at an moment? Do you take little bits out and consistently drop the price each day assuming it's not recovering 100% of the daily loss for your sales each day. I don't suppose you could accurately answer the question unless you are in the situation, but I'm interested in what you "think" you would do.

I'm intrigued what you people would do.

Follow up question - am I missing anything? Is there a work-around that I haven't thought of?

I sincerely hope I'll be in that position one day, but I'm aware it's highly unlikely. One can only dream!!!

submitted by /u/Danny-boy6030
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