Trader 0xSun Explains How JINQIAN and FAMI Differ From Typical On-Chain Short Squeeze Setups

Trader 0xSun said a normal on-chain stock squeeze typically involves a compliant issuer such as Robinhood minting tokenized stocks tied to real share prices, a Meme coin paired with the tokenized stock, retail buying the Meme coin, and market makers buying the underlying shares to arbitrage the gap and re-anchor prices. According to Odaily, he said this process can push the stock higher and trigger a short squeeze. 0xSun said the JINQIAN/FAMI case was different because an unknown project issued the FAMI token on-chain and retained minting rights, while the project’s compliance status and whether the liquidity pool was locked could not be confirmed. He said that if the issuer is not a compliant RWA issuer, FAMI is essentially just an on-chain token with the same name as the stock. He said the project issued the JINQIAN Meme coin and paired it with FAMI, with a relatively large liquidity pool. Because FAMI’s own market value was very low, retail traders rushed into JINQIAN, which pushed up FAMI as the pool asset. He added that some traders then bought the FAMI stock directly, sending the share price higher. 0xSun compared the situation with Base’s early Meme coin Bald, saying it also lacked a locked pool and ended with the liquidity being removed. He said such cases have no clear certainty and that traders must judge whether the upside potential is greater than the risk of going to zero.