2026-01-17 08:24:58

Funding rates are originally a good thing. They solve the problem of perpetual contracts having no expiration date—when the contract price rises above the spot, longs have to pay shorts to cool things down; conversely, when the spot is more expensive, shorts have to pay longs. This inverse adjustment should gradually bring the price back to reality.

It used to be fine when the spot liquidity was large and the pools were deep enough, and the long-short ratio could be directly reflected in the funding rates. When more people shorted, shorts earned a discount, and the funding rate turned negative; when longs flooded in, longs got liquidated, and the funding rate turned positive. The logic was self-consistent.

But since the Alpha project started to appear with all sorts of tricks on contracts, things have gone awry.

These Alpha tokens' pools are shallow like mosquito legs, with some whales even controlling 98% of the circulating supply. Now, whale tactics are very simple: build positions at the bottom or top, then manipulate the pool price to reverse the funding rate. When the pool price is pushed up, the contract price must follow downward, and the funding rate immediately turns positive; conversely, when the pool price drops, the funding rate turns negative. This completely detaches from the reality of long and short positions.

RIVER is a typical example. The long position size is ten times that of the short, so logically, longs should be liquidated, but instead, shorts keep paying longs. What does this indicate? It shows that the funding rate no longer reflects the true supply and demand of the market but has become a tool for whales to harvest profits.

How to break this cycle? Honestly, there’s no short-term solution; we can only wait for the industry to self-correct.

For retail investors, the only way is to learn how to avoid traps. Before taking action, check three things: how much liquidity there is, whether the pool depth is sufficient, and if the control ratio is too high. Projects that use pools worth only tens of thousands of dollars to manipulate contracts worth hundreds of millions are tempting but best left alone. Nobody knows where the top will be.

The market is bloody and full of opportunities, but only by preserving your principal—this old hen—can you survive longer in this game.

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SignatureCollector

· 01-19 06:35

Now I understand, fees have become a tool for the big players to cut the leeks. The RIVER example was perfect, the bulls were played like pawns. The pool is shallow like urine, still dare to get in? I advise you to think carefully. The reverse manipulation of fees is a trick that retail investors simply can't beat the big players at. Preserving principal is more important than anything else, otherwise no matter how much you earn, it's useless. This is the common problem with Alpha coins; the circulation is tightly controlled, and you basically have no chance. To put it simply, it's now about whose pool is deep enough; shallow ones should be avoided.

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GateUser-00be86fc

· 01-18 14:10

It's the same old trick from the whales, the fees have been turned into tools for market manipulation. Retail investors really need to open their eyes and see clearly to make money. The pool only has a few hundred thousand, yet they dare to trade contracts worth billions? Isn't that asking for death? That RIVER trade was absolutely crazy. The bulls are ten times the size of the bears, yet they still have to pour money in. It's so absurd that I am speechless. Currently, trading these Alpha coin contracts is just gambling on when the whales will cut their losses. Only when three indicators look good should you go in, to have a better chance of surviving longer. The fee mechanism was originally quite fair, but now it's been turned into a joke by small-cap coins. They talk about self-correction, but instead of waiting, it's better to learn how to avoid traps yourself. Don't be greedy, and you won't lose. This market can really drive people to collapse, but you still need to keep your principal. Maybe next time, you'll be able to make a profit.

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ImpermanentLossFan

· 01-18 00:39

Damn, the fee structure has long become the casino's ATM, and there's no way to avoid it. Another Alpha coin with a shallow pool is bleeding retail investors; the casino's tactics are nothing new. The RIVER example is truly incredible—bulls need ten times the funds and still have to send money in the opposite direction. The logic is utterly absurd. I agree with the statement in the article—keeping the principal as the old hen is the only way to survive longer. No doubt about it. Now, the contract market is just a big casino; fee data has long lost its value. Rather than studying fees, it's better to first see how many points the coin's casino controls. If it exceeds 80%, just stay away. In the past, you could judge bullish or bearish trends by the fee rate, but now it all depends on the casino's mood. It's truly frustrating. Deep's pool is worth ten Alpha coins; the gap is huge. Let's wait—wait for the industry to self-correct or for stricter regulations. Retail investors can only be exploited now.

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BTCRetirementFund

· 01-17 08:55

Really, the fee structure has been messed up by the whales, and now it's impossible to see the true supply and demand. That RIVER example was amazing—bulls being whipped in reverse, it's too outrageous. I won't even touch coins with shallow pools; it's too easy to be manipulated. That's why you have to learn to avoid traps; capital is the key. I've seen it all along—fees for small-cap tokens are entirely a game played by the whales. But on the other hand, how much longer do we have to wait for the market to self-correct?

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OnlyUpOnly

· 01-17 08:47

Damn, been cut again by the market makers, and the fee structure has long been useless. --- I also participated in that RIVER trade. Do I still have to pay ten times the long-short ratio? I can't play this game. --- The pool depth is as shallow as a mosquito's leg, and yet people still dare to touch it. No wonder. --- The key is how to identify which pools are black pools. Looking for a reliable checklist. --- Preserving principal is more important than anything else. This phrase hits too close to home. --- Alpha coins are just a trap. I no longer trust fee adjustments. --- If there's no short-term solution, it just means retail investors will continue to be harvested. --- Really, now the contracts are completely the market makers' ATM. --- Pools worth hundreds of thousands leverage billions in contracts. I avoid such projects now. --- It's obvious that fees are no longer based on supply and demand but are just tools for harvesting.

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MevWhisperer

· 01-17 08:43

Yeah, fee structures these days are just the bankrolls for the big players, no surprise there. Damn, the RIVER example was incredible—over ten times long positions still have to be paid to the shorts? That's just a one-sided leek-cutting script. A shallow pool the size of a mosquito's leg but manipulating contracts worth hundreds of millions—this game’s rules are already damn broken. Retail investors really need to wake up; only by understanding the pool depth can you act wisely, brothers. Preserving your principal is the key to longevity—this really hits home.

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GhostWalletSleuth

· 01-17 08:43

Wow, the RIVER thing is really outrageous... You can even reverse trade with a tenfold long-short difference, what’s the point of playing anymore? Fees have been exploited by the big players so much that someone should step up and put an end to it. I no longer pay attention to coins with shallow pools—pools of a few hundred thousand dollars manipulating billions in contracts? Dream on. Just wait for the industry to evolve on its own; retail investors should keep avoiding the traps for now.

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fork_in_the_road

· 01-17 08:39

The depth of the pool is like mosquito legs, the market maker just made me laugh, this is the true nature of Alpha coins --- The RIVER case is incredible, bulls ten times, bears still getting cut, the fees are not determined by the market at all --- Basically, the pools of small coins are too shallow, giving market makers opportunities for reverse manipulation. How can retail investors play? --- Avoiding traps is the key, a few hundred thousand dollars in the pool can leverage billions in contracts. I really dare not touch such projects --- Principal is like a mother hen, it must be well cared for, otherwise the market would have cut you out long ago --- Fees have become a cutting knife, this broken situation indeed shows no hope in the short term --- Circulating volume, pools, and control ratios—if you don’t clarify these three, getting in is just pure money transfer --- The logic of fees used to be consistent, but now it’s been played out by market makers --- Once Alpha coins appeared, the entire ecosystem changed flavor, it feels like there’s no turning back

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