5 minute Alpha #2 — Rocket Finance $TOMB fork on $FTM, how to profit from pump and dumps
Tired of watching 30 minute, 45 minute, 60 minute youtube videos to find some juicy alpha? I was, so I started this youtube series to deliver genuine juicy alpha in 5 minutes or less. You can find the series here → https://www.youtube.com/channel/UC8TL2f74TVL_xuB46-J5Psw
First we had $OHM fork season, then $STRONG fork season, now alas $TOMB fork season is upon us. Merry $TOMB fork season everyone! Jokes aside, it seems everyday there are new $TOMB forks popping up. Yet, many of them explode and then quickly fade away without the backing of papa Henry Yeh and his billions. So how can we, retail investors — the small fish, profit from these forks. Well I detail my strategy in my 5 minute alpha youtube video on Rocket Finance here → https://youtu.be/R3Jt2n8jiRw . Of course, this is not financial advice and purely an education speculation on what one might choose to do. Here is my interview with the founder of Rocket Finance, dNNar0L:
Interview
Herbysbreadloaf Question #1: Tell me about how the idea of rocket finance started?
dNNar0L: I wanted to create a defi for close to a year but there weren’t any sustainable projects back then which could live more then 24 hours. After I saw tomb forks a few weeks back I decided that this is it. Thus rocket has been “born”
Herbysbreadloaf Question #2: What distinguishes Rocket from other seigniorage protocols?
dNNar0L: Nothing special. We just thought about a different tokenomics and Iwant to be fully transparent with all the dao wallet decisions we make, that is why we implemented the dao wallet tracker.
Herbysbreadloaf Question #3: Often with seigniorage protocols there is a heavy pump in the beginning and then a slow price decrease over time, what things have you put in place to help prevent or mitigate the sell pressure?
dNNar0L: The sell pressure is planned to be mitigated when it gets closer to peg when we plan several advertising strategies + autocompounder implementation if needed. We also have in mind a 3'rd LP token set which creates buy pressure on both tokens.
Herbysbreadloaf Question #4: What are some of the future plans for Rocket finance? Any alpha leaks that you can share?
dNNar0L: Future plans are to keep this protocol alive as much as we can, to drain the dao funds back into the protocol and when this will eventually drain die we are planning to re-launch on another ecosystem with improvements learned from the first one
Herbysbreadloaf Question #5: I saw that you are KYC-ed through OxGuard, are there plans for an audit of the protocol?
dNNar0L: KYC was in my plan to use it the same way but it was heavily demanded by the community so I had to burn one of the best cards, that is why we grew from 0 to 2.5k members in less then 3 days.
Interview Takeaways
From this interview, there are obviously some red flags. First and foremost, when asked what distinguishes Rocket Finance from other $TOMB forks, dNNar0L responded “nothing special” which is very concerning. Although, he does mention the public DAO wallet which is noble in intention, but like Taiki Maeda says, most DAOs will vote to pump their bags but not think of the long term prosperity of the project. Also worrisome is that when asked about future plans for the protocol, the answer was just to “keep the protocol alive as much as we can” and then take what they learned and relaunch on a different ecosystem. So even the founder seems to think the protocol is not built to last, so why should we as investors expect it to last?
Strategy
So if we know this is a pump and dump and for once we’re actually early, how can we profit as retail investors? This is not financial advice, but my personal strategy is to farm only a small bag in the genesis pool using $wFTM to earn $ROCKET then immediately sell that $ROCKET. Once the genesis pools are over then I will closely watch the charts and the discord to see the uptake of new investors. If the protocol picks up steam, then I’ll put part of my profits from the genesis pool into $ROCKET / $FTM LP and immediately sell off my rewards/emission for a stablecoin like USDC. Some might say this is a conservative strategy but if you go full degen on one of these pump and dump protocols you’re gonna get burned. Regardless, ape wisely, live wildly, and be safu my frens.
-HerbysBreadLoaf