Another cabal token.
It got the attention of ZachXBT, who tried exposing them some weeks ago.
But it hasn't crashed or rugged since.
I don't think that's the play here quite yet.
95% concentrated supply
Selling that supply would mean the end of the endless liquidation harvesting they are doing, by moving the price heavily in any direction they please.
Which seems to be a great source of income, maybe greater than yanking all the liquidity at once.
Scarcity is an interesting tool.
Many, many shorts have piled into this one.
More shorts than there are likely even tokens available.
But due to scarcity, the only one who can really sell it into the floor hard is the cabal that holds it.
That makes a odd situation where, after now fully airdropping, there is really only a relatively small amount of supply hitting the market through unlocks, until a cliff hits around late July.
And the cabal has been diligently buying the airdropped tokens up to regain their full control over the price.
As long as the cabal has USDT funds to keep buying the remaining uncontrolled supply, in the same way it can dump, they can easily keep spiking the price and destroying shorts.
It reminds me of LUNA.
Yeah, we all know this isn't right.
The instinct is to short it.
But the more we collectively short it, the more it can go up.
It's the dokwon playbook, using shorts to fuel a rally.
A rally which will ultimately end, but my gut says that it will end when most have lost breath to short it.
Again this is not me giving you financial advice or a solicitation to trade it.
This is me telling you to be extremely cautious if you are trading cabal tokens like this.
It got the attention of ZachXBT, who tried exposing them some weeks ago.
But it hasn't crashed or rugged since.
I don't think that's the play here quite yet.
95% concentrated supply
Selling that supply would mean the end of the endless liquidation harvesting they are doing, by moving the price heavily in any direction they please.
Which seems to be a great source of income, maybe greater than yanking all the liquidity at once.
Scarcity is an interesting tool.
Many, many shorts have piled into this one.
More shorts than there are likely even tokens available.
But due to scarcity, the only one who can really sell it into the floor hard is the cabal that holds it.
That makes a odd situation where, after now fully airdropping, there is really only a relatively small amount of supply hitting the market through unlocks, until a cliff hits around late July.
And the cabal has been diligently buying the airdropped tokens up to regain their full control over the price.
As long as the cabal has USDT funds to keep buying the remaining uncontrolled supply, in the same way it can dump, they can easily keep spiking the price and destroying shorts.
It reminds me of LUNA.
Yeah, we all know this isn't right.
The instinct is to short it.
But the more we collectively short it, the more it can go up.
It's the dokwon playbook, using shorts to fuel a rally.
A rally which will ultimately end, but my gut says that it will end when most have lost breath to short it.
Again this is not me giving you financial advice or a solicitation to trade it.
This is me telling you to be extremely cautious if you are trading cabal tokens like this.
Order storniert
One thing you can easily identify on this one is how the market maker consistently abuses liquidity to ensure collective losses.Keeps very consistent momentum with the 5/10 moving averages, and moves price into one direction
It's an easy trade, it looks simple. And it works.
But it works because the market maker knows it will take the win on the collective.
Because once it turns, the collective position size will not be given back in liquidity on the move back.
Once everyone tries to exit, only a part of the liquidity is given back and the price is moved past the collective entry price.
This is what having 95% supply is good for.
When the market maker pulls the sell side liquidity, there is barely any sellers on the books.
And since there isn't really that much supply out there to sell, the price moving down can be largely absorbed by the market maker.
It's also in a way conditioning traders.
A certain confidence builds for traders to bottom-fish/short-tops.
This will turn into massive losses later on, when the market maker decides to pull all liquidity and blast the price through these levels.
Anmerkung
Earlier I had a thought when I heard someone talk about the kind of losses these type of tokens cause to retail.I'm not too sure if that's what this is really about.
Although I'm sure retail fuels this, and surely the majority takes losses as usual, I think there is another angle to this.
In the past, Binance Labs and BNB based tokens have done very similar things. Large run ups into very long down-only charts.
Other exchanges have to hold inventory of these too, to provide liquidity to their customers.
Although they try to stay delta-neutral, in reality this isn't always so easy.
And market-makers have to take losses sometimes as well, when they get caught with delta at the wrong time.
Maybe this has caused other market makers to look for similar opportunities.
I'd coin the term 'Trojan tokens'
These are tokens which bad actors try to get listed on exchanges to cause losses to that exchanges market maker/insurance fund.
JELLYJELLY is a prime example of this.
It caused a huge loss in Hyperliquid's AMM.
And I wouldn't be surprised if it origins from the same cabal which runs this token.
Market makers do PVP aswell.
And I think on this one, we have a case where Bitget, KuCoin and OKX have one over on other exchanges.
KuCoin and OKX Ventures have allocations, and BitGet has been the alleged base of the cabal.
My instinct says other exchanges have been fooled into thinking this has a large supply, while that supply has been tucked away by the cabal.
This has caused a huge imbalance of perp-shorts to spot-longs.
Usually a market maker goes long spot for their perp short hedges, but there is barely any spot liquidity for this token.
The sell-side on the spot-market for LAB is insanely empty for the supply it advertises.
With -0.2% (shorts pay longs) funding, increasing premium on spot, over 75% shorts to 25% longs on Open Interest which is over 100M LAB tokens.
Yeah, they can sell it at any time, and that would sure destroy the price back to 0.xx, but the supply they have is of 0 cost to them, it is issued for free.
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Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.