MOB Short Squeeze Has Traders Reminiscing GME Days
MobileCoin (MOB) is up more than five times in the last 48 hours after a trader was borrowing what was at one point $120k worth of the token per hour to short it, according to crypto influencer who goes by Donny Crypto on Twitter. MOB is the MobileCoin project’s token and is intended for use…
By: Owen Fernau • Loading...Byte
MobileCoin (MOB) is up more than five times in the last 48 hours after a trader was borrowing what was at one point $120k worth of the token per hour to short it, according to crypto influencer who goes by Donny Crypto on Twitter.
$MOB is set up for a short squeeze that will make GameStop look like child’s play. One party is paying 120,000 USD per hour to hold their position. It’s paying 3000% interest (not a typo). Buy MOB only on FTX. https://t.co/uwd9sXjuNX
— $MOB boss donny (@DonnyCrypto) March 27, 2021
MOB is the MobileCoin project’s token and is intended for use as a currency for private mobile payments. The project is aimed to integrate with messaging apps and allow users to privately transact without providing information to a third party wallet.
The move has left traders guessing as to why someone would build a $150M short position against this token. Going short means borrowing an asset in order to sell it at market price, with the plan of buying and returning the asset at a lower price, pocketing the difference.
“It’s likely part of a larger strategy that makes the overall portfolio less sensitive to movements in the market, or delta neutral,” Donny Crypto told The Defiant.
Delta neutral is a portfolio strategy which typically involves both options and their underlying securities, making changes in the security’s price net out to zero. This allows a trader to make money only on the volatility of a given asset, which may be an advantage to some.
Still, other traders simply jumped along for the ride, with some speculating a short squeeze -when short sellers are forced to buy more of the token to cover their positions- could be coming.
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