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Solana memecoin protocol teases new ‘short squeeze’ platform
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2024-08-21 02:08:28
Tom Mitchelhill3 hours agoSolana memecoin protocol teases new ‘short squeeze’ platformA memecoin shorting protocol called Dumpy.fun says it will release a new “squeezy” tool allowing traders to take the other side of the short trade.582 Total views6 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onA Solana protocol initially designed to short memecoins is launching a new app that will do the exact opposite, allowing users to go long on heavily shorted tokens.
In an Aug. 20 X post, the Dumpy.fun protocol — which borrows its namesake from the highly profitable Solana memecoin deployer pump.fun — said it would launch a short-squeeze tool called “squeezy.lol” next week on Aug. 27.
The shorting platform said the new tool would usher in a “new era of PVP” — referring to the aggressive, player vs. player style of trading that memecoins as an asset class encourage. Source: Dumpy.fun
The Squeezy.lol platform will allow memecoin traders to “take the other side” of dumpy.fun users with a new tool called the “squeeze explorer” that shows the most shorted memecoins.
The platform said the new tool would allow investors to spot the heavily shorted assets and offer traders the opportunity to mobilize memecoin communities to trigger a “short squeeze.”Source:squeezy.lol
Dumpy.fun allows its users to short Solana memecoins with small amounts of leverage, which, given the sharp decline in the price of Solana-based memecoins over the last few weeks, may have presented a profitable opportunity to many traders.
Related:Why is Solana’s Dogwifhat (WIF) memecoin crashing?
“Shorting” an asset, such as a cryptocurrency, is when traders bet that the price of that asset will decline. A short squeeze happens when the price of a heavily shorted asset rises quickly and forces short sellers to buy more of the asset to cover their cost basis.
The GameStop saga of 2021 stands as one of the most famous examples of a short squeeze, with thousands of retail traders forcing hedge funds to liquidate their short positions as the price of the company’s shares rallied over 1,500% in a month.
Dumpy.fun currently offers support for 11 memecoins in total, including Dogwifhat (WIF), Wen (WEN), and Bonk (BONK), but said it would introduce permissionless listings, allowing users to short newly created tokens of their choice.
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