On the hunt for extremely overvalued cryptos
Today I was casually browsing info about various cryptos and noticed something new, crypto with ticker ALICE. That sounds quite strange so out of curiosity I checked full name. It is "My Neighbor Alice". Now that really peaked my interest.
Just someone with strange sense of humor to name crypto My Neighbor Alice or did I missed some new blockchain game? Quick search show that I indeed missed a game. Shorty I found official video just 2 days old and under minute long. Good way to check new game.
Ok this is not my preferred game genre, but looks pleasant. I think I saw those graphic assets before, so they are probably stock, which is fine for Early Prototypes. They have functional walking simulator and from "Anyone here?" in chat working server but not many interested players. As aspiring developer I of course wish fellow gamedevs good luck.
One thing remains - to check how they use blockchain. They are on binance - that's very interesting... token costs over $11 and supply is 100M. My jaw dropped.
WTF???
Are they trying to get over billion dollars valuation? (let's put aside that "currency tokens" aren't entire game) Billion? with B? That is over hundred times splinterlands assets valuation. Or roughly 4 times Hive blockchain market cap after today's rally.
Do they have some major hit title like GTA, League of Legends or Half-life to reflect this valuation? No they have Early Prototype. This is pure insanity.
I was reluctant to short crypto, never done that before, but seeing this changed something. I opened margin account on binance and lost my virginity.
I entered short position at ~$11.55 and plan to remain in it until ALICE loses ~90% of value.
I wonder how many similar thing are out there. From now on I am on hunt for extremely overvalued cryptos. I wont touch many, but I will strike if I see some insanity like this.
And why not keep journal, documenting future triumphs and hilarious defeats...
Thanks for reading. This of course wasn't any investment advice.