One trade ended up netting $300,000 less ๐
$PUMP dropped 16% in 24 hours
I took a look on-chain
One address dumped 1.264 billion tokens all at once
and got back 5.483 million $USDC
at an average price of around $0.0043
The problem wasn't that they sold
It was that they sold too fast
They sold everything in one go and ate 5% slippage
If they'd split it up and sold gradually
they could've made about $300,000 more
Zooming out, things don't look much better
Three wallets dumped a combined 2.9 billion tokens
cashing out around $12.58 million
When that much gets sold all at once
it's no wonder the price tanks
My main takeaway after looking at this:
On-chain, it's not just about having a good eye
You also need enough liquidity
When the order book is thin
you think you're taking profit
but really, you're discounting your own trade
The biggest fear with a large position isn't a price drop
It's finding the exit too small when you want out
When you see a concentrated sell-off like this
do you run along with it
or wait for the selling to finish and see if buyers step in?
#้พไธๆฐๆฎ #Memeๅธ
Not investment advice. DYOR. Trading involves risk.
$PUMP dropped 16% in 24 hours
I took a look on-chain
One address dumped 1.264 billion tokens all at once
and got back 5.483 million $USDC
at an average price of around $0.0043
The problem wasn't that they sold
It was that they sold too fast
They sold everything in one go and ate 5% slippage
If they'd split it up and sold gradually
they could've made about $300,000 more
Zooming out, things don't look much better
Three wallets dumped a combined 2.9 billion tokens
cashing out around $12.58 million
When that much gets sold all at once
it's no wonder the price tanks
My main takeaway after looking at this:
On-chain, it's not just about having a good eye
You also need enough liquidity
When the order book is thin
you think you're taking profit
but really, you're discounting your own trade
The biggest fear with a large position isn't a price drop
It's finding the exit too small when you want out
When you see a concentrated sell-off like this
do you run along with it
or wait for the selling to finish and see if buyers step in?
#้พไธๆฐๆฎ #Memeๅธ
Not investment advice. DYOR. Trading involves risk.