0xSun discusses pump.fun coin issuance participation strategy: Different strategies can be formulated based on the speed of public sale

In a recent post, Smart Money and crypto KOL 0xSun (@0xSunNFT) discussed participation and trading strategies for pump.fun coin issuance. He suggested that investors can formulate different hedging strategies based on the public sale situation. 0xSun advised that if the public sale speed is slow, one can choose not to participate. If the public sale participation progresses quickly, one can participate in hedging with sufficient margin, with the risk being the token distribution interval 24-72 hours after the public sale ends. In one scenario, there is a short squeeze in the contract, and the countermeasure is to leave enough margin, effectively reducing the utilization of funds to increase security. The second scenario is that spot trading opens earlier than the token transfer time, manipulating the spot price to squeeze, even if the contract price does not follow, it will become a negative fee rate. Retail investors who hedge will be tortured by fees if they do not close their short positions. If they close their short positions, the coins in hand will become naked long positions, exposing them to the risk of price fluctuations.

Related Articles