Making money from FOMO? The peak APR for the JINQIAN liquidity pool (LP) on Uniswap hit 83,832%.
1 hours ago
Tonight, the "short squeeze on underlying stocks" narrative surrounding JINQIAN/FAMI on Robinhood’s blockchain has been denied by the parties involved, putting an end to the on-chain hype. However, a review of the entire incident shows that the biggest gains were not only made by top on-chain traders; smart money also reaped substantial profits by setting up JINQIAN trading pair liquidity provider (LP) pools on Uniswap. According to data from Uniswap’s official page, during JINQIAN’s first rally from a $7 million market cap to $60 million, the peak APR of its main trading pair JINQIAN/ETH hit 83,832%, and has since dropped to 79,708%. As of press time, the JINQIAN/USDG trading pair still has a 6% transaction fee, with the pool’s annualized APR reaching as high as 126,440%. This means that if traders bought JINQIAN tokens during the rally, then established liquidity pools at higher price levels, timely collected LP fees, and sold off part of their JINQIAN holdings, their risk-reward ratio would be far higher than that of simply holding JINQIAN tokens. However, current market sentiment has become overly FOMO, and on-chain scams are on the rise. Even setting up LP pools for individual popular meme coins cannot fully avoid risks from token price fluctuations, so users should exercise caution with their investments.
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