$ZEC just took a look at the popular coins on Binance Square, as well as the coins most discussed in chat rooms and groups, and that is ZEC. Most people are currently underwater from short positions.
My advice is simply: do not try to short this kind of coin.
Reasons are as follows:
1. The more you short this kind of coin, the harder it will pump. Refer to previous examples like pippin, TRB, and LAB. Shorting will not make you money because you cannot withstand the drawdown.
2. ZEC is a privacy coin. It has strong whales, Grayscale, mining farm owners, and big players in the black-and-gray market who hold a huge amount of spot and have highly concentrated control. The higher they push it, the more valuable the coins in their hands become. As long as you keep shorting, the big players holding spot will only be happier.
3. At present, there does not seem to be much more short interest left above to liquidate, so why is the price not falling? Because there is no spot selling pressure and no one is dumping, and on top of that, Bitcoin, Ethereum, and various altcoins are all taking off, creating a bullish atmosphere. The whales holding spot are even less likely to sell.
4. All pumps are for distribution. The higher they pump, the more they make. But if you short, you have a liquidation price. The hype is very high, yet it just will not fall; instead, it only attracts more people to short, piling up shorts and triggering cascading liquidations like fireworks.
My advice is simply: do not try to short this kind of coin.
Reasons are as follows:
1. The more you short this kind of coin, the harder it will pump. Refer to previous examples like pippin, TRB, and LAB. Shorting will not make you money because you cannot withstand the drawdown.
2. ZEC is a privacy coin. It has strong whales, Grayscale, mining farm owners, and big players in the black-and-gray market who hold a huge amount of spot and have highly concentrated control. The higher they push it, the more valuable the coins in their hands become. As long as you keep shorting, the big players holding spot will only be happier.
3. At present, there does not seem to be much more short interest left above to liquidate, so why is the price not falling? Because there is no spot selling pressure and no one is dumping, and on top of that, Bitcoin, Ethereum, and various altcoins are all taking off, creating a bullish atmosphere. The whales holding spot are even less likely to sell.
4. All pumps are for distribution. The higher they pump, the more they make. But if you short, you have a liquidation price. The hype is very high, yet it just will not fall; instead, it only attracts more people to short, piling up shorts and triggering cascading liquidations like fireworks.
