Mechanism Capital co founder: New funds will continue to buy meme coins

Co-founder of Mechanism Capital, Andrew Kang, pointed out in a tweet that some heuristic methods are suitable for PvP market conditions but not for PvE market conditions.

Firstly, it is not advisable to focus excessively on high funding rates or prices that only rise and do not fall. In a bull market, funding rates may continue to rise while short positions may not be sustainable.

Secondly, attention should be paid to fund rotation. New funds will not diversify investments like cryptocurrency traders; they will choose meme coins they like and then continue to buy them every day/week with each paycheck. Traders who short meme coins due to their rotation will eventually be eliminated.