RE: LeoThread 2025-08-20 14:04

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I believe @monkmasters proposed this idea first

A shorting product for LEO

This would allow people to short LEO / hedge their LEO POWER / long-dated LEO holdings

The key is designing something that accretes yield to @leostrategy and doesn’t strain the LEO economy. Shorting is a natural part of markets and it’s not inherently bad

Since no other shorting market exists, I think this could be a widely used product if LeoStrategy designs something cool. It can also introduce the ability for Hive haters (of which, we have no shortage) to short LEO and continue hating us

Meanwhile, LeoStrategy profits from them and turns profit into more LEO buys



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What will happen to those who just hold their Leo staked as LP, will this not be a negative effect on them?

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Meanwhile, LeoStrategy profits from them and turns profit into more LEO buys

Which ultimately burns the shorts. LOL

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And then we can have a short squeeze? Or how does that work. Would love to see the haters get short squeezed like Wall Street Hedge Funds did on Game Stop. That would be a wild time. Haha.

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Sounds interesting and I am ok as long as LeoStrategy get profit from it but don't have any interest in shorting LEO/ other token type something. No reason behind it. I just don't think it ok for me. But I support the idea as you said LeoStrategy profits from it an LeoStrategy will use if for LEO ecosystem.

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shortin $LEO is a risky business…

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ahh Monk and I had the same idea (my $PURGE)

Yeah I would be highly in favor of a shorting product:

  • team issues it themselves, signals trust.
  • gives an opportunity to optimize portfolio beta (along side with $SURGE and HP delegation)

However;

My main concern is the OTC trades tbh. With the last OTC trade a great deal of the liquid funds from Strategy was used with two results: 1. Strategy captured a large batch of $LEO

  1. The price dumped (as there was hardly any buying pressure.

From the 3loD perspective this is a large risk as there is information assymetry between the strategy team and general investor especially with OTC deals and the timing thereof. Therefore from an internal auditors perspective I would deem this as a large risk (not pointing at bad intent, but finding it an easy to exploit combination between OTC trades and shorting products).

If I would have a vote on this => no, not in combination.

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to illustrate this;

Use the Thormaxi example: - if there was a shorting product before Thormaxi reached out to the team for a OTC trade.

  • A. Thormaxi (could had => not saying he did or would) purchased shorts benefitting when the deal was materialized

  • B. Or - the team (could have => not saying the did or would) get shorts when they reviewed the offer.

  • C. Thormaxi and the team could both benefit from buying shorts when they agreed on the deal => before getting the deal done. When OTC I personally feel the system is to easy to
    exploit

Without OTC trades - these issues would not be present.

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I don’t think the OTC had any material impact on the price

What’s really happening is a rotation from people who are unstaking. I’d like to actually see the data on this

The sellers are - from what I’ve seen - people who have hundreds of thousands of LEO and are unstaking it and selling now that the price is up

I’m not particularly concerned. I wish they would’ve dumped sooner at cheaper prices but we’ll let them exit here before returning to the bull run

Do you really think a ~$20k OTC would have this kind of drop?

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hmm if it was only 20k it should not been the case - I followed tne whole “sunset” batch that thormaxi got and incorrectly assumed that this will be all part of the otc trade (making it bigger than it was).

The information assymetry remains there. But you are 100% correct that my example is not correct as the impact should not be that big!

!PIZZA

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I really don't understand how goes all this thing that you're proposing but the word "short"...
I wouldn't take any minute worring about haters, I think the efforts must be focused on what's really interesting to keep building the smartest and strongest system that has ever been made.
I wouldn't spread attention and capital, I think LEO is the star that should shine brighter every time.
Just my humble opinion on this.

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