The Deadly Trap Behind Profitable IPOs: How Retail Investors Can Use a "Chain Trap" to Fight Back Against Market Makers' Sniping?
With the issuance of new-generation cryptocurrencies such as Monad, MMT, MegaETH, and others, many retail investors participating in new coin offerings face a common dilemma: how to secure their substantial paper profits.
A common hedging strategy is to hold the spot asset and open equivalent short positions in the futures market to lock in profits. However, this approach often becomes a "trap" for retail investors in new tokens. Due to poor liquidity in new coin futures and the presence of numerous locked-up chips in the market, "malicious actors" can exploit high leverage, high funding rates, and precise market manipulation to forcibly liquidate retail investors' short positions, erasing their profits. For retail investors lacking bargaining power and OTC channels, this is almost an unsolvable game of cat and mouse.
In the face of market makers' sniper attacks, retail investors must abandon the traditional 100% precise hedging and instead adopt diversified, low-leverage defensive strategies: (from a mindset of managing returns to managing risks)
Cross-exchange arbitrage