Many coins will try to replicate the Daily DCA Culture of $GIGA.
All but a couple will fail.
Why?
DCA Culture only works if people aren’t trading.
DCA is perfect for $GIGA and only $GIGA because $GIGA has barely any volume, buyers, or sellers.
Here’s an example:
$GIGA did roughly 3% volume/market cap today.
$2.5m buys + $2.5m sells
If all 85,000 holders DCA’d $1, the price appreciation would be roughly +2.5% per day.
On the other hand, Crypto Twitter’s favorite trading coin, $WIF, did 40% volume/market cap today.
$177m buys + $177m sells
If all 250,000 holders DCA’d $1, the price appreciation would be roughly +0.07% per day.
DCAing daily only works when there are no sellers or traders, or the price impact will simply get lost in the noise.
Not to mention, it’s significantly harder to get traders to stop trading and turn them into DCA investors than it is to get investors to invest $1 daily, instead of just sitting on their hands.
Gradually, as the $GIGA DCA gang grows, this will be obvious as hell.
Show original
7.76K
97
The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.