$VVV Tokenomics Alert: Why the Selling Pressure is Just Beginning! 📉⚠️
Trading isn't always about green candles; it's about understanding the "Supply and Demand" dynamics. Currently, my short position on $VVV is facing some volatility, but the fundamental reasons for a bearish outlook remain stronger than ever.
Here is why I am holding the line on this Short:
1. The Airdrop & VC Overhang:
A massive 50% of the tokens were distributed via airdrops, and VCs hold another 35%. This is a classic recipe for immense selling pressure. When a large portion of supply is in the hands of "early birds" and investors looking for exits, every pump is likely to be met with heavy selling.
2. High Inflation & FDV:
With over ten million new coins created annually and an inflation rate of up to 14%, the supply is constantly expanding. When you combine this with a multi-billion dollar Fully Diluted Valuation (FDV), the current price seems unsustainable in the long run.
3. Market Cap vs. Reality:
A ten-billion-dollar market cap for a token with these unlock schedules is a major red flag. As more tokens hit the market, the dilution will likely force the price down.
Current Position Stats (from the screenshot):
Entry Price: 3.526
Mark Price: 4.533
Leverage: 5x Cross
Strategy: I am staying patient. In crypto, fundamentals eventually catch up with the price action.
Risk Management: Floating losses can be stressful, but if your thesis is based on solid tokenomics, patience is key. However, always keep an eye on your liquidation levels and manage your margin effectively.
What’s your take on $VVV? Is it a long-term hold or a "sell the news" event? Let me know your thoughts! 👇
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