How To Make Colossal Gains Compliments of Panic Sellers!

Usually, FUD works against you. Here's an opportunity where the market is mispricing an asset from panic sellers.

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I could have 6x an investment in February. Instead, I panic sold and recognized a 25% loss. And it's all because of a Tweet. I established a position in an Arbitrum project called POI$ON at $0.27. At the time, the market cap was around $450,000. The platform was already established. There were barely any users. But, it was a tremendous value. And, correctly, I recognized that.

Unfortunately, I read a Tweet incorrectly stating the developer would rug and panic sold my position for $0.22, a 25% loss in a few days. In my defense, I asked about the Tweet in the POI$ON telegram and received a very vague answer: "This has been addressed already," I was told. I wouldn't say I liked the answer, fell for the FUD, and agonizingly watched as the POI$ON price increased by 700% in two weeks.

FUD (Fear, Uncertainty, Doubt) sucks. It's why people weren't buying Bitcoin at $17,000 but now want to load up at $30,000. I'm confident I've found a unique opportunity to profit from misplaced FUD and panic selling from speculators.

The platform is called AutoDCA.io; the token I'm referring to is $DCA. In this piece, I will share my thesis on why the AutoDCA.io story is stronger today than when it was priced 250% higher (one week ago). I will outline how it can climb much higher via several potential catalysts. Finally, and most importantly, I will share how I plan on using this situation for potential asymmetrical gains.

What happened with the $DCA presale and token generation event?

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The $DCA public presale filled in less than 10 minutes. I thought I was fortunate because I could purchase a nice-sized bag in the private presale. Unfortunately, when the liquidity was added two days later, and $DCA began trading, the momentum disappeared, and the $DCA price went on a quick death spiral.

It was as if someone yelled fire in a crowded theater before the show began. Red candles filled the 5-minute graph, and hopes of fast riches were replaced with feelings of regret. As stated, I bought a good-sized bag in the private presale and was disappointed. However, I made my buying thesis before the presale and brazenly held all my tokens while the value melted.

In fact, I even bought more when the price dumped by 50%. Of course, I didn't think it would drop 80%, but I knew it was a steal at 50% of ILO's valuation.

I checked out the AutoDCA and Zyberswap Telegrams. To say the sentiment was negative is like calling a salad from Chili's healthy. Everyone had their "professional" opinion on how things were mishandled. I especially liked the people accusing the devs of ripping off investors. All they had to do was open the docs and see the devs don't get anything for six months. The last thing the team wants to see is the price going down.

Wisely, I kept my opinion to myself. There's no reason to be the guy who gets pummelled trying to stop a riot. And I'm glad I did.

How the AutoDCA team responded

Nothing had changed from the presale being filled to the token trading introduction. The platform was up and running. However, the initial circulating market cap dropped from $950,000 to $190,000. Smarter money than me began accumulating. At this point, I didn't feel comfortable buying more. I wanted to see if the team would respond and take action.

Not only did the team quickly devise a plan to attract investors, but they did so quickly and delivered the message. Here's the plan:

Smart investors immediately bought, and the $DCA price quickly doubled. However, after doubling, it had less than a $500,000 circulating market cap!

How panic sellers provided a golden opportunity

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The speculators buying into the ILO and hoping for a quick flip for profit provided an excellent entry point for savvy investors. Let's do some simple math. The platform was valued at less than $500,000. There was around $80,000 in Eth liquidity, $100,000 in non-dilutive USDC rewards, and still over $500,000 that can be used for marketing and platform development.

The numbers were astounding. But they only told a small portion of the bigger story. The bigger story is that:

  • The development team assessed the situation, responded, and made a tremendous decision to renew investor interest in the project.

  • The plan makes sense: improve the platform, monetize the platform, incentivize token stakers, and get the platform's value proposition in front of more users and investors.

  • The plan has attainable goals, staking was implemented within days, and loyal investors are now rewarded with juicy USDC for not succumbing to the FUD.

The golden opportunity still exists!

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As I write this, the narrative gets even better. Today, the circulating market cap sits at $465,000. Staking is live on the platform, and $100,000 will be rewarded in the next 90 days. Of the $465,000, we know 21% is staked for at least 30 days. So these stakers are earning an insane 347% APR. And if they compound their rewards, they can accumulate more $DCA at a 20% discount!

Approximately $100,00 of the $465,000 is Ethereum providing liquidity. The LP stakers are rewarded with a nice yield and earn trading fees. This means that nearly half of the circulating market cap is absorbed by happy investors. Staking has only been live for 24 hours, so I expect the staked amount to increase over the next few days.

Effectively, I can purchase a token that people lined up to buy for $0.005 for $0.0025 (the price as I write). Most panic sellers and short-term speculators have probably exited. I can earn 347% APY in USDC over the next three months, and the team has provided me with confidence that they are committed to the project and plan to improve the platform and add more paying users.

So what am I doing? That's right. I'm buying and staking a lot more. I've examined other ILO projects with worse platforms and no rewards trading at ten times the valuation of $DCA. I'd mention the projects, but I don't want to spread too much hate to all of the Camelot ILOs.

Catalysts that can drive the $DCA price significantly higher!

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If you are still with me, you can agree that the valuation is extremely attractive. People couldn't wait to get in at a $950,00 valuation. Unfortunately (or fortunately for new investors), the circulating market cap has been cut in half due to panic selling and short-term speculators. Meanwhile, the team has proactively responded with $100,000 in non-dilutive USDC rewards and a plan to begin profitability.

The incredibly low valuation shouldn't inspire me to buy more $DCA. The $100,000 in USDC rewards may tempt me to buy and stake more $DCA. But, the potential catalysts and possibilities have motivated me to accumulate more $DCA. Let me highlight a few of these narratives that can catapult the $DCA price higher.

  1. At the time of writing, there are only 258 $DCA token holders. It's like deja vu with the POI$ON token I shared at the beginning. This is nothing. There are nearly 328,000 $ARB token holders. At a minimum, only 0.0078% of Arbitrum users own $DCA. The $DCA token isn't listed on CoinGecko or Coinmarketcap yet. Think of the exposure this will bring.

  2. The platform is expanding to DCA options on zkSync. After the Arbitrum airdrop, every sane DeFi investor wants a piece of a probable zkSync airdrop. So adding zkSync assets to the platform will draw in a new group of investors and users.

  3. The team releasing new solutions. The possibilities offered by AutoDCA.io are virtually unlimited. Imagine being able to purchase a token when it drops by 10%, accumulate a pool of tokens in a specific category, or get incentivized to grow your portfolio for your favorite token(s). These are ideas the AutoDCA team is working on.

  4. The team has funds for marketing and development. They aren't bootstrapping or struggling to keep the lights on. This means they can focus on building and improving the experience for investors and users.

Key Takeaways

The FUD in $DCA has already shaken out short-term speculators. The team has confirmed its commitment and reduced the risk of holding the $DCA token by offering amazing rewards. The valuation for the platform is unbelievable and could easily be multiples higher. And only 258 people have taken action to take advantage of this opportunity.

Every project touts that it's still early. But with only 258 $DCA investors, we are in the Jurassic era of AutoDCA. I feel bad for the ILO investors who got shaken out. But fortunately, they can still re-accumulate their $DCA holdings and join the ride as it climbs towards new highs.

At the time of writing, I am holding and staking $DCA. I have not been paid or sponsored to write this article. I did participate in the ILO.

$DCA can be purchased exclusively on Zyberswap: https://app.zyberswap.io/exchange/besttrade

$DCA Telegram group: https://t.me/AutoDCA

This information should not be taken as investment advice. Digital assets like crypto and NFTs involve risk, so you should always perform due diligence before investing. $DCA is a highly volatile and risky investment. Unstaking requires a 30-day un-bonding period.

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