Just a quick post today before I sleep!
Disclaimer: I have done around 30 mins of research, please let me know if I am wrong in any of my calculations and as always, this is NOT financial advice.
Today, I was day trading for fun (as I always do before any exams) and noticed a token down from ~$12 to $1.20... that was SUSHI Coin.
Of course, my first instinct was to buy some! I ended up buying it and dollar cost averaging all the way down to $1.12 before it started shooting up, and I mean like absolutely shooting up!
I was satisfied with my profits at around ~$1.30, I sold it and called it a day, not bad making $200 in about 45 mins. I came back to check on the coin throughout the day and just saw the price keep going up, $1.50... $2.00... then $3.00, I was in absolute shock. Imagine if I didn't cash in my longs... imagine if I longed more at the bottom...
After a while though, I decided to stop blindly shorting and longing coins like I've always done and actually do some research and that's when I found this, the Etherscan for the coin.
I noticed the current inflation rate was rather insane, in fact at 1:28 AM AEST (as of writing) there are 64,640,640 SUSHI tokens. Let's have a look back on this number in a bit...
SUSHI Coin Inflation Rate
I do need to sleep soon, so luckily I have some rough data from 30 mins ago. Since then, there has been roughly 200,000 SUSHI coins created, yes you read that right 200,000.
Doing some basic maths, that's around 9.6 million tokens per day, or in other words close to 15% inflation per day. Do you remember what else had insane inflation rates?
That's right... but even Bitconnect didn't have THAT high of an inflation rate, which is likely why it lasted so much longer than any other ponzi schemes.
Inflation Since 1:28am: ~20% daily
It is now 1:33am AEST, Etherscan shows 64,686,506 SUSHI coins, an increase of 45,866 in just 5 minutes. Using this rate, that's approximately 13,209,408 tokens per day (almost 20% of total supply). This massive inflation rate can be verified on Coinmarketcap too, albeit they do update it a lot slower than Etherscan which I presume is live.
Price Prediction: $0.75 within a week
Given the extremely high inflation rate of SUSHI coins, I predict the price will go down to $0.75 within a week and even with a pump and dump, the price will get back up to a maximum of $6.00. With this prediction going forwards, I have decided to short 1111 SUSHI coins on Binance. My liquidation price is around $7.24 so even if there is one more pump and dump, I'm hoping it won't reach that price. Or else I will be down roughly $5k USD :)