200% Gain Shorting Catdog: My Strategy
Based on the insightful investigations by @dethective and @bubblemaps (thank you for your enlightening threads!), I decided to short the $CATDOG crypto.
@bubblemaps / @dethective on X (formerly Twitter)
I apologize for sharing my performance only now, but this strategy can be applied to other cryptos launched in the future by the team of scammers led by the Ardizor "mafia.". If this humble article can prevent some of you from falling for one of this team's scams in the future, all the better.
As explained by these two accounts, $CATDOG is a crypto manipulated by Ardizor and his aliases, who together have nearly 2.7 million followers.
So, if I were to give you one piece of advice to end this article, it would be:
Be wary of a crypto project when numerous influencers shill a crypto, especially if it's done in a coordinated manner. They are likely being paid by the team behind the project and are taking advantage of their large following to dump their bags on their communities.
Avoid Crypto Scams: Follow Crypto Rug Muncher on Telegram and X (formerly Twitter).
Types of Rug Pulls :
- Liquidity Rug Pull: This is the most common type of rug pull. Developers create a token and list it on a decentralized exchange (DEX), pairing it with a popular cryptocurrency like Ethereum or BNB. They encourage investors to provide liquidity to the pool. Once enough liquidity is added, the developers drain the pool, leaving investors with worthless tokens.
- Ownership Rug Pull: In this scenario, the project's developers retain a significant portion of the token supply or have control over the project's smart contract. They can then manipulate the token's price or even mint more tokens, diluting the value of existing tokens and causing investors to lose money.
- Dump and Rug: This involves influencers or insiders heavily promoting a project to create hype and drive up the price. Once the price reaches a certain level, they sell off their large holdings ("dump their bags"), causing the price to crash and leaving other investors with losses.
- Soft Rug: This is a more subtle form of rug pull where developers gradually abandon a project or slow down development, leading to a loss of investor confidence and a decline in the token's value.
- Hard Rug: This is a sudden and dramatic rug pull where developers abruptly disappear with investor funds, leaving no trace or explanation.
Another investigation made by Handsome Finance :
Unfortunately, I couldn't short $CATDOG as soon as I knew it was a scam because I didn't realize it was listed on MEXC (affiliated link). However, I still managed a decent profit (closer to 200% because I increased leverage later).
I started with 2x leverage and increased it to 5x shortly before their so-called buyback, which preceded the end of $CATDOG.
