On July 12, Smart Money, crypto KOL 0xSun (@0xSunNFT) published an article discussing the participation and trading strategies for token issuance on pump.fun. It suggests that investors can formulate different hedging strategies based on the public sale situation.

0xSun suggests that if the public sale is slow, it is completely fine not to participate. If the public sale participation is progressing quickly, you can participate in hedging on the premise of keeping sufficient margin. The risk is the 24-72 hour token distribution interval after the public sale ends. "One situation is that the pull-up contract explodes short orders. The countermeasure is to keep enough margin, which is equivalent to reducing the utilization rate of funds to improve security. The second situation is that spot trading opens earlier than the token transfer time. By manipulating the spot price to pull up the price, even if the contract price does not follow, it will become a negative fee rate. If retail investors who hedge do not close their short positions, they will be tortured by the fee rate. If they close their short positions, the coins in their hands will become naked longs, and they will have to bear the risk of currency price fluctuations."