Sweatcoin has the potential for a scam pump

Hello friends. Intro to scam coins A scam coin is any totally useless cryptocurrency that was created purely to generate profit for the creators and their VC friends. There is no arguing that Sweatcoin matches the description perfectly, as do almost all cryptos. Sweatcoin founders have bestowed 22% of the supply of their token upon their own company for a good profit, and also bestowed 11% of the supply to themselves for the hard work of creating this scam. One of the only big cryptocurrencies which is not a scam coin would be Bitcoin since the founder never made money from it. The only other one we can think of is Nano, since the founders didn't give themselves any at all, and set out to actually change the world instead of just extracting value from retail. With scam coins, the only way for the founders of a project to sell off their tokens at a great profit is for them to pay a pumping firm such as FTX to pump their coin. This is quite expensive for them, but it pays off in many multiples because they will be able to get an amazing price for their coins. Even if it costs them several million dollars worth of their scam coin to secure a deal with FTX, the added liquidity to sell into and the higher prices they will surely obtain from the pump will make the deal totally worth it. The general structure of a scam coin pump looks something like this: The main idea is that you want to reach a new all-time high, which will cause many short stop-loss orders to be hit and will also trigger a huge amount of FOMO from breakout buyers. This liquidity can be used to sell the coin for a great price, and both the project developers and the pumping firm walk away with a huge profit at the loss of retail traders. ---------------------------- Fundamentals In terms of the fundamentals of this SWEAT scam coin, it is trading at a price of around 1.5 cents with a circulating market cap of 46 million dollars. Since only 20% of the tokens are unlocked and 80% of them will be unlocked gradually at a future date, the fully diluted market cap is a much larger 330 million dollars. This constant flow of supply onto the market from token unlocks has forced the price into a powerful downtrend and compressed both the token price and market cap substantially from the initial values. It will be another 25 days until the next unlock event for this coin. Since the organic value of a crypto token is a product of speculation from traders, it would make sense to look at the valuation metric of the number of wallets created on the Sweatcoin chain. That apparently comes out to a massive 13 million of them, which puts the current value of the coin into perspective at a price of $3.54 per user. Since each user will potentially provide value to the coin by speculating on it, that could be one metric to watch. If the number of users can grow substantially, the pump may be even larger. When we continue with the comparison to the Optimism Scam Coin token, we can see that this one reached a huge market cap of $443 million dollars before it reached the Scam Top and insiders started selling coins for a high price. In the context of this brand-new scam coin, we think a similar market cap is not out of the question. ---------------------------- Trading Strategy These kinds of coins are risky, so it's a bad idea to use any sort of leverage and it's also a bad idea to trade with very much capital. You should only be putting a small percentage of your account into coins that you know full well are scams since you also know they could easily go to zero. The case in which I am wrong and this coin goes to zero is the case in which the founders of the project are not aware of how to optimally extract the maximal value from their communities and walk away with a fat stack of cash. If they decide to forgo pumping the token up before selling it, they could easily crush the price down by another 99% from all of their selling pressure, and kill the coin in so doing. However, my view is that the probability that the founders of Sweatcoin know what they are doing and have a plan to extract value by pumping the coin is quite large. Our plan is to buy small amounts of this coin for these cheap prices, and hold them either until we reach a new all-time high or until it becomes clear that there will never be a pump in which case we will realize a loss. We will layer in thin bids at lower and lower prices to get a good deal, and hopefully, ride this scam all the way to the peak. If we are right and the coin reaches a new ATH, we will be able to unload our coins for a big profit of over 500%.