Capitalizing on FOMO Sentiment? JINQIAN’s LP APR on Uniswap Peaks at 83,832%

BlockBeats News, September 2nd - Tonight, the "short squeeze of the Robinhood on-chain JINQIAN/FAMI" narrative has been denied by the parties involved, bringing the on-chain manipulation to an end. However, looking back at the whole event, the biggest beneficiaries were not only the top on-chain traders, as smart money also reaped substantial profits by providing liquidity through the JINQIAN trading pair on Uniswap.

According to Uniswap's official data, during JINQIAN's first surge from a $7 million market cap to $60 million, the leading trading pair JINQIAN/ETH reached a peak APR of 83,832%, which has now dropped to 79,708%. As of press time, the JINQIAN/USDG trading pair still has a 6% trading fee rate set, with an annualized APR as high as 126,440%.

This means that if traders bought the JINQIAN token during the pump and then provided liquidity to a high-priced unbalanced pool, subsequently claimed the LP fees in a timely manner and sold some JINQIAN, their risk-adjusted return should be much higher than simply holding the JINQIAN token.

However, the current market sentiment is overly FOMO-driven, with on-chain scams on the rise. Even when providing liquidity for individual popular meme coins, one cannot completely avoid the risks associated with the token price fluctuations. Users should be cautious of investment risks.