Recently there was a massive rug pull of the $SQUID token. But was the Squid Game cryptocurrency rug pull a no brainer? Were there no red flags Or did everyone miss them?
The price of the token peaked from a few cents to a whooping $2,856 in a couple of days. While several other coins like SHIB and DOGE have managed to achieve comparable magnitude of appreciation in the price, this was certainly an exception and alarming !
But the question that we must be asking ourselves is, why did the price shoot through the roof in such a short period of time? The answer is simple — the craze around the Korean Netflix show “Squid Game” was frenzying across the entire world. As soon as the crypto natives discovered the token, they wanted to buy it in the pursuit of taking it to moon.
We arrive at a very simple conclusion with this episode then — that the underlying community and its raging sentiment drove the market upward. Had an investor been aware of the underlying sentiment or how the asset had been performing historically (although admittedly there was not much historical data to speak of in this case) or may be even went a little deeper into the fundamentals of the token like it’s tokenomics or utility or liquidity in the market, they’d have been able to use it to be more aware of the asset in question.
Why are Fundamentals of a token and Sentiments of the market so important for a trader ?
At the heart of any successful asset with strong fundamentals (like tokenomics, utility) in the space of cryptocurrency is the underlying community that drives the entire asset forward.
In the case of a DeFi protocol, the community will help in the building of various projects on the protocol. They will provide liquidity to the protocol and also give the protocol devs the chance to explore and experiment. This community is pervasive in almost everything that is related to cryptocurrency.
The only reason why Bitcoin is valued so much is because there is an underlying community that is supporting it — a community of users who believe in the cryptocurrency and use it to hedge against the rising inflation.
The same can be said for Ethereum (native currency ETH) the second largest cryptocurrency by market cap is the engine that powers the whole ecosystem of Decentralized Finance. The price of ETH is not only subject to intrinsic factors like tokenomics and network effects, but also by the overall growth of the DeFi ecosystem on its blockchain. The same fundamental applies to other blockchains as well. Other factors like circulating supply, overall liquidity within the market and trading volume also helps a trader in understanding the strength of a token.
And wherever there is community, there is sentiment. Remember that the crypto community does not consist of seasoned financial analysts who are looking at everything critically. In fact, it comprises of all types of people with the same target — all of them are looking for the next moonshot token.
That is why at the drop of a hat, they are willing to put all in to the next “big” coin that they come across. And all of them have the same vested interest of wanting the crypto industry to win — if it wins then they will be able to make huge profits.
Thus, if the sentiments of this underlying community and the fundamentals of a token can be tracked and analyzed, then it would be helpful for any trader who is thinking of investing in cryptocurrency. That data can be used to understand how the markets have performed historically and know exactly where the sentiment was high and why.
This will enable in the creation of much successful trading strategies overall.
And that is why We at Panther Quant, with the help of Artificial Intelligence and Machine Learning are determined to provide real-time sentiment analysis of the crypto markets along with analysis of the fundamentals of a token for the trader to derive at the best pairs to trade upon.
A glimpe of how Panther Quant will help the trader in every possible way !
Identify Trading Pairs In this stage, traders can select the trading pairs that they feel are the most profitable.
Back-test Strategy Based on Historical Data At this stage, traders have the option to backtest their strategy based on historical data , which will be provided by the platform enabled by machine learning.
Optimize the Trading Strategy Once the traders have had a chance to look at the result derived on the basis of the historical data, they can easily optimize their trading strategy to minimise the risk in the current market conditions. The platform will then optimize the risk-reward ratio as per the data analyzed and give the traders the best combination of entry/exit for your strategy.
Dry Run on Live MarketOnce the trading strategy is completely optimized, then it can easily be dry run on the market. This is where real-time sentiment analysis (on the trading pairs identified by the trader previously) and algo based machine learning enabled predictive analysis (analysing fundamentals of the chosen pairs ) on data fetched from more than 1000 different sources will be conducted. Based on that analysis, the trader will be suggested the top trading pairs at that given instance in the market.
Use/Sell/Lease your Trading Strategy as NFT
Panther Quant is bringing to its traders a ‘Functional’ NFT Marketplace like never before where a trader can not only create successful trading strategy but also convert it into an NFT (by a simple ‘drag & drop’ feature) and trade it with other traders on the platform.
Once the Traders have tested their trading strategy on the live market, they can either decide to create an NFT of that strategyand lease/sell it on the easy-to-use NFT marketplace or Alternatively, they can retain that strategy to themselves and keep utilizing it for further trades. The best part about this stage is that Traders have absolute control over how they would like to execute their trading strategy. The above steps can be repeated numerous times until the desired result is achieved.
The crypto market is growing rapidly and with the amount of information floating around, capturing the sentiments of the market and going through the fundamentals of every token is almost impossible for humans and this is precisely where Panther Quant will come at the rescue of the retail traders.
Panther Quant is going to be a metamorphic experience for every crypto trader around the globe !
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If you wish to learn more about us Follow Panther Quant [$PNTQ] on official social media handles only and do not miss any important announcements !
https://pantherquant.io
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