The Solana protocol, originally designed to buy memecoins in the short term, has launched a new app that does the exact opposite, allowing users to long tokens that have been sold in large quantities in the short term.
In an August 20 post, the Dumpy.fun protocol, named after the highly profitable Solana memecoin distributor pump.fun, announced that it would be launching a short squeeze tool called “squeezy.lol” next week on August 27.
The short-selling platform said the new tool will usher in a “new era of PVP,” referring to the aggressive player-versus-player style of trading that Mimecoin promotes as an asset class.
Source: Dumpy.fun
The Squeezy.lol platform allows memecoin traders to take the “opposite” of dumpy.fun users through a new tool called the “squeeze explorer”, which shows the most sold memecoins.
The platform said the new tool will allow investors to identify heavily shorted assets and give traders the opportunity to mobilize the Mimecoin community to create a “short squeeze.”
source: It’s thrilling. LOL
Dumpy.fun allows users to short-term trade Solana Mimecoins using small amounts of leverage, which could have been a lucrative opportunity for many traders given the recent price drop of Solana-based Mimecoins in recent weeks.
relevant: Why is Solana’s Dogwifhat (WIF) Mimecoin Crashing?
“Shorting” an asset, such as a cryptocurrency, is when a trader bets that the price of that asset will fall. A short squeeze occurs when the price of a heavily shorted asset rises rapidly, forcing short sellers to buy more of the asset to cover their cost base.
The 2021 GameStop incident is one of the most famous examples of a short squeeze, with the company’s stock skyrocketing more than 1,500% in a month as thousands of individual investors forced hedge funds to liquidate their short positions.
Dumpy.fun currently supports a total of 11 Mimecoins including Dogwifhat (WIF), Wen (WEN), and Bonk (BONK), but has announced that it will introduce permissionless listings, allowing users to buy newly created tokens of their choice in the short term.
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