Shorting is Better than Airdropping? The Ultimate Shorting Guide Before Token Release
Short selling before release = Earn more!Original source: The Smart Ape X account
Author: The Smart Ape
Compiled by: Shenchao TechFlow
I make more by shorting before the launch than by participating in airdrops!
$ZRO, $ZK, $STRK airdrops = thousands of dollars.
Shorting before the launch = earning more!
Here’s the ultimate guide to shorting tokens before launch!
For months, the hype before market launches has been rampant.
New protocols allow people to get early access to tokens before they launch.
But what many don’t know is that you can also short these tokens before they hit the market! This is what you should be doing now!
When a new token appears before the market, people know very little about its tokenomics, and they usually tend to go long.
This has been the case with almost all major launches recently: $STRK, $ZRO, $ZK, $W, etc.
Shorting $W would yield a 4x return at launch, and so far, it has yielded 9x.
Let’s see how to short before the launch.
Here are the platforms where you can short before the launch:
Browse them to find the best prices; you will usually find them on WhalesMarket.
Shorting:
Go to the "Pre-market" page
Select the token you are interested in
Browse the "Sell" section
To short, you need to short at the highest price. Therefore, you need to look for the highest bid, which is different from looking for the lowest price to go long.
You will see many bids; you can either accept the full bid (click "Sell") or partially accept the bid (click "Partial").
Connect your wallet
Deposit collateral
Fill in the bid
Now you know how to short before the launch!
By shorting this way, your collateral will be locked until the launch.
To confirm your profits (assuming you shorted $50,000 worth of $BLAST):
After the launch, buy $50K worth of $BLAST from the market
Repay the loan to reclaim your profits and collateral
Shorting can be more difficult to understand than going long.
Mechanism:
Deposit collateral (usually $ETH)
Borrow tokens to short and immediately sell at market price
Close the short position by buying tokens from the market, returning the tokens, and reclaiming collateral
A few months ago, I shorted $BLAST at $4.6 on WhalesMarket. $BLAST had just launched, and we had very little information about its tokenomics. Today, its price is about $0.046, which means I have made a 100x profit so far!
The price may drop further after launch.
When to short?
The sooner, the better.
Prices are usually higher at the start and decrease over time.
After the launch, prices typically drop even more. We can see this well in the chart below, which shows a significant difference between the start and end.
My strategy is to monitor the listed projects before the launch. Then, I evaluate the FDV based on similar projects that have already launched.
The only remaining information is the total supply. This is not always known, but you can be among the first to know on X.
Once you know these elements, you can assess the fair price of the token by calculating: FDV / total supply.
If the pre-market price is above this price, you can short using the method above. You will find that pre-market prices are rarely below this price unless it is at the end of the market.
This opportunity is still not well known to the public, but you know how it is: the longer it takes, the more people discover it, and the harder it becomes to profit from it.
To get ahead, start now with the next token for pre-market trading.
