Trading Forks
And avoiding getting rugged
The majority of my efforts this week were focused on the Avax Friend Tech fork, which gave me great amusement as I dodged in and out trying to avoid the multiple exploits that took place!
Overall, my adventure into the land of the red triangle was a profitable one, and I traded fairly well.
The thing I like about Friend Tech forks is that it's fairly easy to predict when the attention will begin to wane.
During the early phases when tons of big accounts are joining, the meta is hot because there's a chance you can get a Pranksy or Dingaling super early and make a 50x.
This gives participants hope, so they stay engaged on the platform. The big accounts like it because they get the dopamine hit of their price rocketing up and their fees going up only. Bonus points too if the chain's founders are also promoting it heavily.
In the early phases, the new platforms are mostly bot-free. This means if you have no life like me, you can sit and stare at the activity feed for hours on end, refreshing every 30 seconds and pretty consistently sniping new users that are almost certain to go up.
This is hugely +EV as you don't need much starting capital to make decent returns, so you're not risking much of your portfolio on some dodgy fork that has a >50% chance of rug pulling and your precious internet coins being transferred directly to Kim Jong's missile program.
However, after a while, the inflow of creators is greater than the inflow of traders coming in. As word spreads about the amazing fees they create, most of the big CT accounts scramble to take advantage. At the same time, the botters take note and deploy their tools, sniping 50%+ of the supply of each new big account and promptly dumping them all on those manually trading.
At this point, the fork is at the end of its lifecycle.
The fun times are about to end.
The dopamine from the creators starts to reduce as their charts go -50% when a bot unloads 50 keys at once.
The manual traders start to get bored of having to compete with the bots and deploy less capital.
The shillers saying how it's the new best thing go quiet when the website begins to struggle under the load of the bots and new joiners.
Reality starts to set in.
Luckily for me, I determined that at this point it was likely no longer +EV to keep funds in THE ARENA and sold 75% of my portfolio and promptly converted the red triangle coin to United States dollar coins.
When I woke up in the morning to find that my remaining 25% was in the hands of North Korea's finest, it was mildly annoying but not super surprising!
Despite the bad ending it was a good learning experience and it gave me another opportunity for profit and to practice my trading and timing skills.
The rest of my time this week has mostly been spent in the Monad Discord, playing with Dalle-3 and making amusing images.
The Monad community really feels like an oasis in the middle of a desert.
While the rest of CT is losing their minds, calling out the latest scammer, or becoming jaded and waiting for red candles to send the charts to zero, the Monad Discord is simply unaware of this miserable existence and is instead producing the most ridiculous memes I've seen in a long, long time.
I'm assuming most normal human beings will find this a pretty odd way to spend their time. But for those of us who are perpetually online and enjoy the absurd, it's a pretty fun community to be part of.
Below is a collection of some of the recent community-led artistic endeavors.
Have a great week!