BlockBeats News, September 2nd — Tonight, the "short squeeze of the on-chain JINQIAN/FAMI on Robinhood" narrative has been denied by the parties involved, bringing an end to the on-chain speculation. However, looking back at the entire event, the biggest beneficiaries were not only the top on-chain traders, as smart money also profited significantly by providing liquidity through forming the JINQIAN trading pair LP on Uniswap.

According to Uniswap's official data, during JINQIAN's first surge from a $7 million market cap to $60 million, the leading trading pair JINQIAN/ETH reached a peak APR of 83,832%, which has now dropped to 79,708%. As of the time of writing, the JINQIAN/USDG trading pair still has a 6% trading fee rate set, with an annualized APR as high as 126,440%.

This means that if a trader bought JINQIAN tokens during the pump and then provided liquidity to a high-priced one-sided pool, promptly collected LP fees, and sold some JINQIAN, their risk-adjusted return should be much higher than simply holding JINQIAN tokens.

However, the current market trading sentiment is excessively FOMO-driven, and on-chain scams are increasing. Even by forming LP for individual popular meme coins, one cannot entirely avoid the risk brought by the price fluctuations of related tokens. Users should be aware of investment risks.