Today in Markets

Why are Cosmos Tokens Pumping?

Celestia, Osmosis and Injective are on the move
Jan 4, 20241 min read

Certain Cosmos tokens are pumping hard, busy at work retracing the pain of yesterday’s drop: Celestia has ripped 65% off its local bottom, Injective has gained 30% and Osmosis is up 20%. What is contributing to the pump, and how can you capitalize on the opportunity?

Staking tokens to secure any chain is a low-effort, generalized route to qualify for an airdrop. With numerous protocols having airdropped tokens to stakers in recent weeks, this strategy has gained traction on CT as one of the best ways to hunt airdrops!

These popular Cosmos tokens have experienced a surge in demand as users have awoken to the fact that staking them could translate to additional yield in the form of airdrops.

To hunt these airdrops without exposing yourself to losses from a potential decrease in the prices of the tokens that you are staking, it is possible to adopt a delta neutral strategy, in which you hold spot tokens and short perps equivalent to your amount of spot exposure.

Taking a delta neutral approach to airdrop hunting will position you to receive future airdrops while locking in the current price of your asset and allowing you to earn yield from both staking the spot asset and the funding basis on the perpetual position.

Check back Monday for a guide on how to stake Cosmos assets, like TIA!

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

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