The crypto market has entered a period of significant decline since Bitcoin peaked in early February and dropped below the $100K threshold. With Solana Meme coins collapsing after Libra's downturn, even the last active market sectors have gone quiet—SOL plummeted by **67.8%** from its $295 high to $95.
Amid this downturn, previously inflated VC-backed tokens and Meme coins have started crashing. Tokens like ACT and OM experienced rapid devaluation, sometimes halving multiple times within days. Meanwhile, valuation bubbles burst—new VC tokens like SHELL now trade at just $30M market caps, far below their initial hype.
For traders, high-valuation tokens with low circulating supplies present prime shorting opportunities. Below, we analyze Binance Futures-listed tokens to identify the most promising candidates.
Key Criteria for Shorting Tokens
Target Profile:
- High FDV (Fully Diluted Valuation) but low circulating supply
- Recent listings (post-January 2023)
- Minimal unlock schedules (avoid tokens with gradual vesting)
Data Sources:
- Market caps: CoinGecko
- Listing dates: Binance Futures API
- Unlock ratios: Token Unlocks (primary), CoinGecko (secondary)
Top Short Candidates
High Market Cap (>$100M), Low Unlocks (<25%)
| Token | Market Cap | Unlock % |
|--------|-----------|----------|
| OM | $62B | 10% |
| TRUMP | $3.2B | 18% |
| STRK | $1.8B | 22% |
| DRIFT | $1.1B | 15% |
🚨 Example: OM’s 10% circulation against a $62B FDV makes it a high-risk, high-reward short target.
Low Market Cap (<$100M), Extreme Low Float (<2%)
- KAITO
- USUAL
- PLUME (CoinGecko data)
⚠️ Caution: Some tokens (e.g., ONDO) have low unlocks but infrequent vesting events, reducing immediate sell pressure.
Additional Filters
Avoid:
- Past "pump" tokens (SUI, PENDLE)
- Revenue-generating DeFi tokens
- Korean-backed projects (UXLINK, IP)
Target:
- Formerly strong tokens now underperforming
- Projects with no clear utility or overhyped narratives
FAQs
Q: Why focus on low-circulation tokens?
A: They’re vulnerable to massive sell-offs when unlocks hit, crushing prices.
Q: How to confirm unlock schedules?
Q: What’s the risk of shorting Meme coins?
A: High volatility, but current market fatigue favors shorts.
Pro Tip
Use stop-losses to manage sudden pumps. The best shorts combine weak fundamentals and high FDV.