PSA: What's happening with moons and why you shouldn't FOMO in right now.

I'm the biggest moon bull there is with a significant investment in moons. I wrote a lengthy post here detailing why I think moons have great potential.

HOWEVER. The current price is completely unsustainable. There is a very high chance it will crash down hard, and I don't want to see anyone getting burned and think moons got rug pulled or are a scam or whatever.

So here's what's happening.

Two weeks ago, Moons moved from the rinkeby network to the Arbitrum L2 network

Essentially, this created two different types of moons: L2 Arbitrum moons, and L1 Rinkeby moons.

Currently, there is only a single exchange that affects the price movement of moons; HoneySwap.

HoneySwap trades between xDai and xMOON; but xMOON can only be made from L1 Rinkeby moons, and not L2 Arbitrum moons.

So what's happening for the past two weeks is, the vast majority of moons (all the moons in reddit vaults) were moved from Rinkeby to L2 Arbitrum.

Of the moons that are left, people have been slowly buying xMoons from Honeyswap and exchanging them into L2 Arbitrum moons, reducing the total supply of xmoons/rinkeby moons.

So what's happening is that the buy pressure is still there, but the supply gets lower and lower, which artificially increases the price.

When people are selling their L2 moons on Celesti.trade or whatever, these moons do not affect the price at all.

This is why the price keeps going up. Because the supply of xmoons has almost dried up

Remember, xmoons are the only moons that affect price, but the supply is limited and getting smaller and smaller.

Once L2 moons get on exchanges because someone made a bridge or they provided liquidity on Uniswap or BSC or whatever, and L2 moons start affecting the price, we can expect a huge drop in the price because the sell pressure would be correctly reflected in the pricing of moons.

Again, I'm super bullish on moons mid-long term, but this current price is artificial and will not last.

I'm glad if you're considering moons as an investment, but now is not the time to FOMO in, IMO.