In the era of rampant shitcoins, it seems we have all forgotten what the true drop to zero trap is.

Yesterday's injection really caught me off guard; these types of shitcoins are basically all operated by the same group of people. Recently, there has indeed been an increase in investors shorting these things, and many have been deceived by this repeated pump-and-dump strategy. Many brothers in the group have their leveraged long positions trapped at high levels, which is the fundamental reason I have always opposed chasing these types of coins—there's no logical support, it's all about capital games, and you're not only competing with the operators but also fighting against your own human nature.

Let's specifically talk about the two popular coins recently. One has such a terrible appearance that it's hard not to criticize it. It claims to be a blockchain game, but the actual experience is worse than some webpage games from ten years ago. It's completely a garbage project with no fundamentals or story. The problem is that the manipulators are too disgusting, constantly pushing the prices up and down, making both long and short positions uncomfortable. I personally rely on observing changes in funding rates and open interest to judge the market, and this approach has actually made my trading quite comfortable. These kinds of things are very likely to drop to zero eventually. If you really want to play, you must keep your position very small, and the proportion of total funds cannot exceed a tiny bit.

On the other hand, I initially viewed it as a complete shitcoin, but now institutions have started to build positions, so there is some fundamental support. In the short term, we still have to wait for an adjustment opportunity. Regardless, the risk tolerance requirements for this type of project are very high, and managing positions well is the right approach.