$PONS It looks like it's going to be hard to recover 1.

Post

--Bearish

$PONS It looks like it's going to be hard to recover
1. Revenue continues to decline: only about $236,000 in 7 days, or roughly $33,800 per day.
2. On-chain activity remains sluggish, and it looks like it may stay that way for a long time.
3. The buyback yield can't even compete with PUMP.

牛奔策略

Is There Any Hope for My PONS Long Position?

I’ve been holding a long position, and so far there’s still no sign of a recovery.
PONS has fallen from its all-time high of around $0.97 to about $0.19, a drop of more than 80%. But the problem is that both the price and the business are declining—and the business is still deteriorating rapidly. Maybe my long position has a chance of recovering once the business stops falling.
1. PONS’s greatest source of value is still its buybacks
One of the main reasons I initially followed PONS was its real value capture: trading volume → fees → protocol revenue → PONS buybacks. To date, PONS has generated approximately $203 million in cumulative fees, around $36.75 million in cumulative protocol revenue, and roughly $23.91 million in cumulative returns for token holders. It’s not a project supported entirely by a narrative. But conversely, if its valuation is based on revenue and buybacks, then a decline in revenue means its valuation must be reassessed too.

PONS-10.47%