Three fish eaten on Pump.fun
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Three fish eaten on Pump.fun
For ordinary investors without insider information, the fish body offers a relatively balanced risk-return ratio.
Navigating Web3 tides with focused insightsBy Professor Suo
Introduction
In financial markets, just like at the dinner table, some people prefer fish heads, some favor fish bellies, and others enjoy fish tails. The same preferences are clearly reflected in the crypto market. So, what should you eat?
This article uses different stages of @pumpdotfun to symbolize the "fish head, fish belly, fish tail," exploring various investment phases in financial markets.
"Fish Head"
Definition: In financial markets, the fish head can be seen as:
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Left-side trading in secondary markets—buying before prices rise.
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Seed-round investments in primary markets.
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On @pumpdotfun, known as "insider pool" or "private round."
Here comes the fish head
Characteristics:
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High risk, high reward: Investing in the 0-to-1 growth phase, with extremely high multiplier potential.
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Suitable for: Only a small number of individuals with very high risk tolerance. These investors typically conduct deep research but still face significant risks.
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Profit potential: On platforms like @pumpdotfun, investing under 10,000 units could yield 10x returns if successfully launched; reaching 10 million units might result in 1000x appreciation.
Notes:
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Due to limited capital capacity, the fish head stage is primarily the domain of "on-chain elites" and "P-generals." Large players generally do not participate unless launching their own project or involved in a coordinated scheme.
"Fish Belly"
Definition:
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The fish belly is the part most people love—it has the most meat.
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On @pumpdotfun, the fish belly refers to the phase after an insider launch, where investors make decisions following a period of research and analysis.
Characteristics:
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Relatively low risk, relatively high return: After market validation, risks decrease and opportunities become more certain.
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General investors: Without insider information, they must rely on sector analysis to make investment choices.
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Examples: Investors who entered after tokens like $ACT, $PNUT, and $neiro were listed on @binance have enjoyed substantial gains.
Profit Strategy:
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When investing, forget absolute values and focus only on multiples. A fish head investor might turn 500 units into 50,000, while a fish belly investor only needs a 50% increase to double their money.
"Fish Tail"
Definition:
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Fish tail行情 refers to investors trying to profit by bottom-fishing based on luck near the end of a market cycle.
Characteristics:
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High risk, low return: With weak market conditions, bottom-fishing carries extremely high risk, and returns rarely justify the risk taken.
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Investor psychology: Some always believe they can exit at the top, but often end up trapped.
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Project team dumping: At this stage, project teams or whales often conduct final rounds of fund extraction.
Risk Analysis:
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Returns from investing in the fish tail are extremely low. Participation is unwarranted unless an investor believes there's still significant upside potential in the market.
"Conclusion: Choose Your Cut Based on Risk-Reward Ratio"
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Fish Head: High risk, high reward—suitable only for a few risk-tolerant individuals.
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Fish Belly: Lower risk, stable returns—ideal for most investors.
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Fish Tail: High risk, low returns—not recommended unless you have a special market insight.
Personal advice: I prefer the "fish belly," as it offers higher tolerance for error. For ordinary investors without insider information, the fish belly provides a relatively balanced risk-reward ratio.
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