On-chain Analysis: Smart Money on Space ID
Unlock sky-high profits with the methods of these 04 $ID Smart Money! Copy trade like a pro and skyrocket your earnings with $ID tokens.
Note:
This is the second part we published about Space ID. To find out what Space ID can offer to Web3 users and what active incentive programs you can make make profits from, visit Part 1.
Analysis
Data as of May 12, 2023.
If you spot any issues with this Report, please let us know here.
Take a look at Smart Money on Space ID in this dashboard here.
SpaceID's governance token, the $ID, is pivotal in the project's decision-making process through DAO community-driven proposals. It offers several utilities, such as:
Staking: Staking users can be entitled to discounts on trading fees and Web3 domain registration fees.
Payments: The $ID token is an accepted form of payment within the SpaceID ecosystem and for Web3 Name SDK Integration.
Governance: Token holders can vote for or against SpaceID DAO proposals and influence the platform's governance.
BNB Chain vs. Ethereum - Who is the Favorite Child?
BNB chain currently dominates $ID trading in both transaction count and user count partly because of its cheaper fees. Meanwhile, Ethereum is showing rising activities. It's intriguing to observe if Ethereum will catch up with the BNB chain in the future.Â
The cause of increased trading within Ethereum's consistent user base is also worth exploring since this could mean a select few traders on the chain are making more and more trades over time.
Smart Money Profits: Method Explained
For this section, "Smart Money" refers to investors who buy when prices are stable and sell when prices increase. These savvy traders managed to earn impressive returns on investment (ROI) in relatively short periods.
Accumulating $ID price: $0.43 and $0.46 | March 18 to April 13, 2023
Profit taking $ID price: $0.80 to $1.01 | April 14 to 24, 2023
Wallet Breakdown and Strategies
0x5e...dfb1 - The Perseverance
The owner of this wallet netted around $4,000 (a 66% ROI) in 22 days.
Strategy: Sell when prices appreciate.
He started by purchasing $ID tokens on March 27 via PancakeSwap, but he made a mistake. The slippage was huge ($2,000 dollar in USDT swapped for $1,796 in ID token) but he kept moving forward until reaching the accumulation of around 12,000 $ID tokens.Â
When the token price increased on April 16, the owner sold about two-fifths of their holdings and continued selling for the next two days. They sold the remainder when the $ID price reached the apex at $1 per token on April 18.
0x9d...388e - The Patience
This wallet's proprietor made a profitable trade of $3,800 profit on a $4,500 investment (an 84% ROI) in just eight days.Â
Strategy: Open Long/Short position on USDT, which is borrowed by collateralizing $ID
He bought 12,845 $ID tokens through Gate.io and Binance on April 6th and borrowed USDT against his holdings on OpenLeverage due to an anticipated event but he was uncertain about its timing.Â
Later on the same day, the owner closed their position, which implied that he was apprehensive about holding a long position overnight, probably because of the usually high overnight fees on Long/Short positions.Â
On April 8, the wallet did it again with 10,000 ID tokens (worth $4,500) collateralized to borrow USDT. On April 16, the owner paid off the USDT debts and deposited their whole $ID token holdings on Binance, valued at $8,350.
0x55...64cf - The LP Champ
This liquidity provider (LP) earned a yield of $4,000 in five days.
Strategy: Add liquidity to the USDT-ID pair on PancakeSwap
He engaged in a series of transactions starting from April 9. Initially, he purchased 17,500 $ID tokens using BNB and provided liquidity to the USDT-ID pair on PancakeSwap.Â
This action caused the value of his LP share to rise significantly from $16,500 to $18,500, resulting in a profit of $2,000.Â
His attempts to replicate their previous achievements resulted in a minor loss later.
On April 14 when $ID price is accelerating, he decided to sell his ID tokens, earning an additional $2,000 in profits.Â
0x16...019f - The Known
This wallet belongs to "Jacky," a member of the Galxe project team and serving as a Community Manager for ALPACA. He managed to generate an estimated profit of around $16,000 by investing an initial sum of $36,700.
Strategy: Add liquidity to the USDT-ID pair on PancakeSwap but with a bigger capital.
Since March, Jacky has been exploring and getting involved with $ID. His strategy involved adding liquidity to the ID-USDT pool on PancakeSwap, using 40,000 $ID tokens and USDT on April 6.Â
After a duration of 10 days, he chose to withdraw his liquidity, which amounted to $13,400, surpassing his initial investment value. Following this, he proceeded to sell his $ID holdings gradually on the Binance platform.
$ID Token Repurchases: To Buy or Not to Buy? & Their Portfolios Now
As of May 12, 2023, the assets held in the wallet with the address "0x9d...388e" have been transferred to a centralized exchange (CEX). Consequently, we lack knowledge of the wallet's behavior, leaving us uncertain about the owner's intentions.
As of May 12, 2023, wallets "0x5e...dfb1" and "0x55...64cf" show a potential long-term hold or inactivity because more than half of their portfolios are now in stablecoins or large-cap altcoins.
On the other hand, Jacky invested $17.3K into $ID tokens from April 27 to May 3, and then transferred $2.8K worth of these tokens to another wallet. Jacky's decision to allocate a quarter of his wallet ($14.2K) to $ID tokens suggested a high risk tolerance, implying that he may have been influenced by market sentiment or employ other personal strategies.
However, not long after, Jacky strategically divested ID tokens by May 12, possibly for liquidity, donation, or payment, and invested in BNB. This might be due to his anticipating its growth or seeking stability.Â
Jacky's portfolio predominantly contains big-cap altcoins like ETH, WBNB, WETH, DEGEN, BNB, indicating a cautious approach, but also includes the mid-cap ALPACA, showing a balanced, risk-assuming strategy.
Conclusion
Smart money investors on Space ID have utilized various strategies, such as leverage trading, providing liquidity, and following the price action. Jacky's aggressive investment in $ID tokens indicates a potentially higher risk tolerance and a positive outlook on the future performance of these tokens.Â
The successful short-term trading carried out by these wallets highlights the potential for profit-making in the $ID market. However, the timing of buying and selling tokens is crucial to this strategy, and investors need to be aware of market trends and volatility.
Until the next Report!
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