This is a very unique instrument to trade.
The standard: professional, delta neutral market makers run the game.
Here directional takers are in control.
~2 billion USD daily volume
~3 billion market cap (15 billion fully diluted)
~3% liquidity: 1 million USD
~90% controlled supply
They have their own algorithms abusing level 3 data (stoploss/liquidation prices)
With unlimited buy/sell power, abusing god mode positions (exempt from liquidation, margin limits and requirements)
That and the super thin liquidity
Causing maximum pain on leverage traders.
There is barely any liquidity on their own books.
Market makers are not participating, exchanges are not participating.
Operating on the principle that most traders will not realize their profits
And use their liquidation price as a stop loss.
They make around 15% (!!!) of trade value per liquidation, by far the highest yield for liquidation of any exchange. (1$ price liquidation price gets filled at 0.85$)
And from my research, it seems they are handled by their own liquidators, bypassing maker orders on the books completely.
Push price into liquidations, let go, leave no liquidity for profitable positions to exit
Repeat.
The scheme is on par with FTX and LUNA.
Will it fail the same way? It could.
If it does, who will take the fall?
Their anonymous founder?
Trade with extreme caution.
The standard: professional, delta neutral market makers run the game.
Here directional takers are in control.
~2 billion USD daily volume
~3 billion market cap (15 billion fully diluted)
~3% liquidity: 1 million USD
~90% controlled supply
They have their own algorithms abusing level 3 data (stoploss/liquidation prices)
With unlimited buy/sell power, abusing god mode positions (exempt from liquidation, margin limits and requirements)
That and the super thin liquidity
Causing maximum pain on leverage traders.
There is barely any liquidity on their own books.
Market makers are not participating, exchanges are not participating.
Operating on the principle that most traders will not realize their profits
And use their liquidation price as a stop loss.
They make around 15% (!!!) of trade value per liquidation, by far the highest yield for liquidation of any exchange. (1$ price liquidation price gets filled at 0.85$)
And from my research, it seems they are handled by their own liquidators, bypassing maker orders on the books completely.
Push price into liquidations, let go, leave no liquidity for profitable positions to exit
Repeat.
The scheme is on par with FTX and LUNA.
Will it fail the same way? It could.
If it does, who will take the fall?
Their anonymous founder?
Trade with extreme caution.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.