TLDR:
Dumpy.fun, a Solana protocol for shorting memecoins, is launching a new platform called Squeezy.lol
Squeezy.lol will allow traders to take long positions on heavily shorted memecoins
The platform will include a “squeeze explorer” to show the most shorted memecoins
This could potentially trigger GameStop-style short squeezes in the $40 billion memecoin market
Dumpy.fun has moved to open beta, supporting 11 memecoins with plans for permissionless listings
Dumpy.fun, a protocol initially designed for shorting memecoins, has announced the upcoming launch of Squeezy.lol, a tool that will allow traders to take the opposite side of short positions.
Scheduled for release on August 27, 2024, Squeezy.lol introduces a “squeeze explorer” feature that will display the most heavily shorted memecoins. This tool aims to provide traders with the information needed to potentially trigger short squeezes, similar to the famous GameStop incident of 2021.
Pay attention if you’re bullish on memecoins:
– Deposit your memes to earn
– Expose bears shorting your bags with our explorer
– Rally your community to trigger a short squeeze
Coming soon to Solana
— squeezy.lol (@squeezydotlol) July 17, 2024
Short squeezes occur when the price of a heavily shorted asset rises rapidly, forcing short sellers to buy more of the asset to cover their positions. This can lead to a further increase in price, creating a feedback loop that can result in significant price spikes.
The memecoin market, currently valued at approximately $40 billion according to CoinGecko data, has seen a notable decline from its $53 billion valuation just three weeks ago when Dumpy.fun launched. This decrease suggests that shorting memecoins has been a profitable strategy for some traders.
Dumpy.fun currently supports 11 memecoins, including popular tokens like Dogwifhat (WIF), Wen (WEN), and Bonk (BONK). The platform has also announced plans to introduce permissionless listings, which will allow users to short newly created tokens of their choice.
In conjunction with the Squeezy.lol announcement, Dumpy.fun has moved from its private testing phase to an open beta. This means that users no longer need to join a waitlist to access the platform and can begin shorting memecoins immediately.
The introduction of Squeezy.lol is expected to usher in what the platform calls a “new era of PVP” in memecoin trading. PVP, or player versus player, refers to the competitive nature of trading in the cryptocurrency space, particularly in the volatile memecoin market.
By providing traders with on-chain records of shorts placed on Dumpy.fun, Squeezy.lol effectively offers a glimpse into the order flow of trades. This information could significantly alter the dynamics of memecoin trading, allowing for more strategic decision-making by market participants.
The launch of Squeezy.lol comes at a time when the memecoin market has experienced a decline. Since July, the market has lost approximately $13 billion in value. However, this new platform could potentially inject fresh interest and volatility into the space.
The post New Solana Platform Aims to Enable Short Squeezes in Memecoin Market appeared first on Blockonomi.
