Last month I wrote Uniswap - To The Top, in which I stated Uniswap was not a token to be taken lightly, and it is known to swing hard - the last 72 hours has been evidence of that.
“To expect the unexpected shows a thoroughly modern intellect.” ― Oscar Wilde
Uniswap (UNI) was having a pretty rough start in the market a couple days ago, but as I was casually grocery shopping, I took a glance at the market and immediately headed for the car in the parking lot. First, UNI dove a bit, and I wanted to deposit more money as quickly as possible, and I had anticipated a large spike after the Bitcoin (BTC) pump to 57,000 USD. UNI is known by some as a pump and dump currency.
I did not anticipate a whopping 65% gain in daily average, putting UNI well above its former all-time high of $21.49 USD to a whole new level at $32.63 USD after being down to $19.51 USD. Of course, Bitcoin dove and now we are seeing a -10% or more drop overnight. I recall selling a 400 UNI airdrop for around $1,500 USD last year and being quite happy with the return as I was “late” to cash out compared to others in the ICO. However, it would have been worth over $10,000 USD these last few days - that puts things in perspective, does it not?
One of the things I found to be a marker for how long the pump would last should be evident to anyone who knows that Uniswap is an ERC-20 token that runs on Ethereum (ETH) and thus is subject to ridiculous gas fees. While you are not required to pay gas fees to flip Uniswap (no one would if they were) on centralized exchanges such as CoinbasePro and Binance - the token itself is still heavily influenced by the current Ethereum gas (gwei) prices, based on the number and size of current tx’s (transactions). I saw the market meet resistance only after gas fees reached 285 gwei or more after a long climb, and as soon as they dropped, I saw more pumps. Coincidence? I don’t believe in them.
I proceeded to invest $100 USD at a time during lows and flipped in an upward market after cashing out in a lower profit range before my grocery run. It is extremely difficult, if not impossible, to anticipate a random 65% shift in a token that seems to be having a hard day in paradise. I successfully traded upward with the sacrifice of sleep and any sense of a weekend, and now I am carefully watching the market attempt to restabilize, using only sharp drops for quick turn arounds in flips until I am confident that the new mid-market price has been established.
Uniswap is currently worth $27.85 a token after diving down to $26.45 briefly. However, it is difficult to say if this is the beginning of another pump and dump or just a last-minute show-down from the bulls as Bitcoin correlates with the token. I suspect it’s a bit of both, as well as bears in the market trying to claw their way back into something resembling a normal range. Getting through this one without losing a cent in any trade made for a long weekend, and the show isn’t over yet.
While I did not anticipate this large of a pump, I knew UNI was overdue for one. Uniswap is the most used DEX (decentralized exchange) in volume and has had double the volume of USDT, its runner-up, two days ago when Bitcoin breached 57K. For those that HODL and waste the opportunity to make gains in both FIAT and tokens, this is a non-issue, but for those of us who are active in the market, the question begs to know - where is the new bottom?
It is essential to say that I would never trade Uniswap if it were subject to gas fees, so to me, the token has virtually no utility outside making money, and it is perfect for that if you know what you are doing. For Ethereum enthusiasts, I could see some use and value in it within the Uniswap exchange, but given Ethereum has wholly failed to deal with their layer two gas solution - I see no use for the token outside flipping for profit.
I once had a roommate in Fort Lauderdale, Florida who was an engineer. He frequently spoke about how people would buy anything if it was marketed and packaged correctly and would use dog feces in a mason jar as an example - I didn’t quite understand his obsession with the topic. Now, that is what I think of every time I profit from UNI, which has been consistent for several months. So, when people ask me what I trade, I can say, “I hold Bitcoin and flip shit,” with a serious look on my face.
Shit is synonymous with tokens not worth their own value in transactions, in this instance. Basic Attention Token (BAT), which is also an ERC-20 token, serves a purpose and is drained by Ethereum’s blockchain instead of being fueled by it. No, ERC-20’s are heavily reliant on Bitcoin pumps, as is Ethereum itself, even while remaining up 65%+ in the market.
With that being said, I will be flipping this particular pile of crap until I grow sick of it as it is highly profitable. I do not doubt another pump any more than I doubt another drop - I expect them both in due time and will be prepared to work both ends of the market, day or night. If you are wondering why I am so committed to flipping a currency I do not care for; it is because when I evaluate an investment, the first thing I look at is social support - and Uniswap has a sh*tload of that.
Why it does is lost on me, but the profits are not. Knowing how volatile this token is and being prepared for rapid trades and cutting bait to get out clean quickly has acted as a “pooper scooper” in my trading toolbox. NVIDIA was forced to patch their new 3000 series graphics cards so they will not mine Ethereum effectively and release new hardware specifically for mining Ethereum which would be exciting if ETH didn’t have terrible congestion problems like it is stuck in its second week of COVID.
Currently, Uniswap is the best shit for flipping ever, but be careful where you step!
As always, comments, suggestions, and friendly debates are highly encouraged.
Stay smart & Stay safe.
-Thomas Wolf
Cryptowriter is conducting podcasts that can be found on YouTube, Spotify, Anchor, PocketCasts, and more to come.
DISCLAIMER
I am not a certified financial, tax, or legal advisor, analyst, or planner. The above information should not be considered advice but as an opinion intended to share information and ideas for entertainment and independent research purposes. Cryptowriter and its writers are not responsible for any losses or damages incurred as a result of misinterpreting personal opinions for professional advice.
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