Funding rate question

[JeffBrad12]

To be honest, I have never seen -4%. Most of the exchanges I have used have a cap of -3%. Which particular crypto exchange do you use? That can be a very sweet arbitrage opportunity right there
I use these tools to check funding rates across... Nothing close to even -3% right now

1. https://coinalyze.net/funding-rates/?order_by=6_USDT_stablecoin_m&order_dir=asc
2. https://www.coinglass.com/FundingRate

Such funding fees are extremely rare and occur only during abnormal market movements. For example, on the Bybit exchange, a -4% funding fee occurred at least a couple of times on the COAI/USDT trading pair during a sharp price surge last October. As shown in the screenshot below, the funding fee jumped sharply to -4% at that moment and then stabilized at -2% for several hours.

I was there, when the horror of COAI funding rate creeping up my short position lol . I thought I got a good profit from all the fuds but funding rate eat it all.Every coin that is under suspicion of market manipulation by both market maker and the founders themselves usually don't leave any room for retailer to profit.
They will squeeze you dry if you even dare to short in their market because these are low floats and 99% of supply is in control by both MM and founders. Moving price 30-50% is a piece of cake, enough to squeeze.

[dwyane36]

I was there, when the horror of COAI funding rate creeping up my short position lol . I thought I got a good profit from all the fuds but funding rate eat it all.Every coin that is under suspicion of market manipulation by both market maker and the founders themselves usually don't leave any room for retailer to profit.
They will squeeze you dry if you even dare to short in their market because these are low floats and 99% of supply is in control by both MM and founders. Moving price 30-50% is a piece of cake, enough to squeeze.

Opening short positions when such coins are pumping so hard, especially when the funding fee is eating into your position by 2% or more every hour, is far too risky, and making any profit from it is extremely difficult.
Imho, during these pump-and-dump schemes, an ordinary trader can only make money if he was lucky enough to open a long position at the right entry point and then either close the position for a profit during the pump, or collect the funding fee while it’s high.