The losses are increasing but continue persistently

Regarding today's investment decision on PIPPIN, it is necessary to be particularly cautious of its extremely high volatility as a Meme coin and the current market's specific risks. Below is an analysis of its current situation and operational ideas for your reference.

📊 Current Market Main Risks

Before considering any actions, you must understand the two core risks in the current market:

- High "short squeeze" risk: The PIPPIN contract market has a unique "hourly settlement" negative funding rate mechanism. This means that short position holders pay fees to long position holders every hour. Under this mechanism, the market experiences intense "short squeeze" conditions, with well-known short sellers incurring cumulative losses of up to $4.945 million over the past month and a half. Short selling is akin to going against the trend, with extremely high risks.
- High control risk: On-chain data shows that PIPPIN's token supply is highly concentrated, with 93 wallet addresses controlling about 80% of the tokens. This means the price can be easily manipulated by a few "whale" holders, making ordinary investors vulnerable to passive positions.

💡 Two operational ideas for reference

Considering the above risks, you can refer to the following ideas based on your risk appetite:

- If you pursue a conservative investment approach, it is recommended to stay on the sidelines for now and be patient. The current market structure is extremely unfavorable for shorts, and the risk of chasing high positions is also significant. You can wait until market sentiment cools down and funding rates return to normal levels before seeking opportunities.
- If you are an experienced trader capable of bearing high risks:
- Cautiously follow the trend: If you still consider trading, avoid shorting in the short term. If the price can stabilize above key support levels (e.g., in the $0.45-$0.47 range), consider taking a small long position for short-term gains, but set strict stop-losses and be aware that you may also need to pay funding fees.
- Focus on airdrop opportunities: Instead of engaging in high-risk speculation in the secondary market, pay attention to low-risk "airdrop" opportunities brought by the PIPPIN ecosystem. For example, its partnership project with Mind Network allows users to earn PIPPIN airdrops by locking other tokens (such as FHE), which is a relatively low-risk participation method.

💎 Summary

In summary, today's short-term trend of PIPPIN is dominated by the contract market’s "short squeeze" situation, reducing the effectiveness of technical analysis. For most investors, the wisest choice may be to stay on the sidelines and avoid the current high-risk vortex.