That’s right, I got rug pulled by SnowDog (SDOG). I FOMO’d into SDOG after I found out that they were going to do a buyback on Day 8. I bought 2 SDOG for around USD$1,800 each. When I woke up this morning, they were at $120 each. So I lost a total of $3,360.
I also hold SnowBank (SB). SDOG is a product by SB. So obviously, this rug affected the price of SB. SB was at a nice $2,500 right before the SDOG buyback. This morning, they were at $1,300. I made a decision to close off all my SB position at the point.
I was lucky that I bought SB at $300 each. I have already recovered my initial investment on SB, and on top of that, made a rather nice profit out of it. I would have made more profit if not for the SDOG rug pull. So overall, my profit in SB managed to cover my losses in SDOG, and I still made a $2,000 profit out of this.
What did I learned?
- First and foremost, with these rebase protocols, always recover your initial investment at the earliest time.
- Always take profit. Even though as tempting as it is to stake and auto compound, remember that a gazillion APY of zero value is still zero.
- Take profit frequently, if you can every week. A month in crypto feels like a year in tradition stock market.
Remember, the longer we are in the game, the chances of us being the exit liquidity becomes higher.