These days I've noticed that the partners in the group have started discussing various on-chain memes again, and I've seen that some partners also seem to have made quite good gains. As shown in the image below.
The recent hot trend of Memecoin, it feels like the hot trend of Non-Fungible Token in the late stage of the last bull market. In addition, these days, the topics that are discussed more on social media are various MemeCoin, such as MOODENG, GOAT, MEDUSA, CHEEMS and so on. Seeing others always able to capture these opportunities in the first time, but when you see it and try to participate, you often become the one who buys the top, aren't you feeling frustrated?
So, how can we better discover and capture similar new opportunities? In this issue, we will continue to look at the perspective of on-chain tools, and give you a brief review from the method level.
Before we start sharing, let's briefly explain the differences between MemeCoin, on-chain meme, and large MC memecoin:
MemeCoin, literally translated, refers to meme coins, since Meme belongs to the concept of meme, we can see them as a kind of thought and behavior, and have a certain degree of propagation, with specific phenomena or certain symbolic significance, in short, MemeCoin must have community attributes, and have real users and clear project initiators (or supporting teams/groups). Even some representative MemeCoin will also be favored by market makers or institutions, such as BONK, FLOKI, TURBO, etc., which are openly supported by the market maker DWF. As shown in the image below.
On-chain meme, on the other hand, belongs to the three-no product, that is, no community, no team, and no landing (no specific official website, no token economy, maybe just a cute avatar), on-chain meme is generally created anonymously, and mainly relies on violent pump to attract uninformed retail investors to buy the top, with the risk of rug at any time. Currently, the vast majority of tokens belong to on-chain meme, and there are at least tens of thousands of new on-chain meme appearing on various chains every day. I just checked the data on DEXTools, and there are at least 7 million on-chain meme supported for trading on the chain now. Because on-chain meme has a lot of speculative properties, most retail investors dare not take a heavy position, so "100x warrior" will be the majority.
While some rare coins developed from MemeCoin will have a long-term wealth effect (for example, some may be listed on CEX exchanges), these belong to the large MC memecoin.
Next, let's get into the main topic, how to discover and filter MemeCoin:
Step 1: Find the recently well-performing tokens and discover smart money wallets
In this step, we can use a relatively large number of on-chain tools, such as DexScreener, AVE, birdeye, bullx, GMGN, etc. Next, let's take GMGN as an example for a simple demonstration.
After entering the GMGN platform (which supports simplified Chinese display), first select the chain you are interested in (the platform currently supports 5 chains: SOL, Tron, Base, ETH and Blast), then click the "Hot" button in the top navigation bar. As shown in the image below.
In the time dimension column, filter by 24H, and in the token dimension column, sort by market cap. Then find some tokens with relatively short creation time and fast market cap growth. As shown in the image below.
Here we take GOAT in the above figure as an example, click on the token name to enter the details page, and then we continue to click the "Traders" button at the bottom of the corresponding page and sort by "Realized Profit". As shown in the image below.
Step 2: Find potential smart money wallet addresses and add them to the tracking list
Among the wallet addresses listed above, we are mainly looking for those that have regular transactions and remain active, and then add these wallets to our own observation list and closely monitor the profits and win rates of these addresses.
Here are a few things to note:
- Those with relatively high realized profits, but the wallet address is relatively new and has only transaction records of that token, this type of wallet may be an internal wallet
- Even if the seemingly normal smart money wallet looks good in all aspects, it may still be problematic. As mentioned in the previous article (October 13th), some projects now buy old wallets to conduct honey traps
- Truly effective smart money wallets are hard to find, maybe out of 100 so-called smart money wallets, there are less than 10 real and valuable addresses, this depends on how much effort you put into this
On the GMGN platform, there are actually other data dimensions provided, interested partners can go and explore and discover by themselves. In addition, there are also many tools for checking the Pnl of smart money wallets, such as alphatrace (currently only supports ETH chain), Cielo (supports SOL, SUI, Tron and other chains), etc. Here we will give a simple demonstration of Cielo.
After using GMGN to find potential smart money wallet addresses, we can continue to use the Cielo tool to further verify the authenticity of the wallet transaction data and create our own tracking list.
Enter the Cielo platform, search for the corresponding wallet address, on the query result page we can see some basic information of the wallet, such as through the Activity page we can check the historical transaction activities of the wallet, and through the Token Pnl page we can see the situation of all the tokens the wallet has participated in trading. As shown in the image below.
If you think the wallet is worth observing or tracking, you can click the "Add" button in the top right to add it to the observation list, and in the observation list, you can also set a note name for each wallet address or classify them. As shown in the image below.
Step 3: Use Telegram Bots to track wallet transactions in real-time
Many people like to add the observation wallets to websites like the Cielo mentioned above or their own Excel sheets, but this kind of monitoring may not be able to be done in real-time. In this case, we can also consider using some Telegram bots for tracking.
For example, EVMTrackerBot, which is a bot tool launched by the Cielo platform we just mentioned. After enabling the Bots function on the Settings page of the Cielo website, the Alerts of the wallet addresses you have added will be automatically triggered and notified through the EVMTrackerBot. As shown in the image below.
There are also many similar bot tools like EVMTrackerBot, such as TrojanOnSolana, MonitorAlpha, MaestroBots, etc. Interested partners can go and experience or research them by themselves.
Step 4: Conduct necessary checks on the token community activity and token contract security
If you find that some smart money wallets are actively buying certain new MemeCoin through monitoring, and you also decide to participate in following their trades, you can also consider checking some aspects of the token before actually trading.
For example, quickly check the token's social media.
The goal of doing this is to ensure that the token's community can maintain a high degree of activity, because a community that can continuously generate activity is more likely to push the token to new heights. Many communities that appear to have brainwashing or CX properties (only considering the price aspect, not considering other aspects) can often play a certain role in promoting the price of the token.
The token community generally refers to the Twitter (X) and Telegram corresponding to the token. Among them, Telegram needs to be joined and experienced by yourself, while Twitter can be assisted by some tools for auxiliary checking.
Here we will use the getmoni tool as an example for a simple demonstration. You can quickly check the fan classification situation of the corresponding token Twitter account through this tool, and you can also see how many VCs are following the token. As shown in the figure below.
Tip: The getmoni tool only supports querying the Twitter accounts of the projects they have recorded. If you cannot find the results for some very new projects, you can try other similar tools, such as lunarcrush, TwitterScore, tweetscout and so on.
For example, quickly check the security of the token contract.
Although it is difficult for us to completely verify the security of many MemeCoin from the root, we can still try to reduce the risk of trading tokens to some extent by checking aspects such as the pool locking status, Mint discarding status, and blacklist.
What we commonly see now is the so-called 'crypto honeypot'. The 'crypto honeypot' is a token that ordinary people can only buy but not sell, and only the internal addresses of the project party can sell.
For such problems, we can also use some on-chain tools for additional checks, such as honeypot (supporting Ethereum, BSC and Base chains), rugdoc (supporting BSC chain), rugcheck (supporting SOL chain), solsniffe (supporting SOL chain), bscheck (supporting Ethereum and BSC chains), etc.
However, it should be noted that these tools generally only perform some relatively routine detection on the contract code, so the same contract address may be shown as normal in some honeypot detection tools but risky in others, and some new contracts may not be detected by the current tools in time. Therefore, if you cannot effectively check the security through the tools, you can only make a comprehensive judgment, such as the situation of the team, the design of the official website, the activity of the community, and whether there is a conspiracy group, etc.
Step 5: Conduct quick trading
There are two main ways to conduct quick trading: one is to use some Telegram Bots for sniper trading, and the other is to use some Quick Buy DEX platforms.
There are many Telegram Bots, such as BonkBot, Maestro, Banana Gun, etc. Different trading Bots support different chains, you can choose according to the list below. As shown in the figure below.
For the Quick Buy platforms, the ones with relatively high usage rates currently include Photon, bullx, etc. Here we will take Photon as an example for a simple demonstration. This platform claims to be the fastest trading platform on Solana, and can realize the quick buying and selling of any token, as well as the execution of limit orders. It also supports the quick trading of tokens on TRON, Base, ETH and Blast chains. As shown in the figure below.
In conclusion:
The current crypto market is still facing the problem of overall lack of liquidity, and with the popularization of one-click token issuance platforms (such as Pumpfun, Wagmi, Makenow, Fourmeme, etc.), various tokens with the same name have appeared on different chains, and even the same chain has disputes over tokens with the same name but different capitalization, which has also greatly distracted people's attention and emotions, making it increasingly difficult for ordinary retail investors to play with MemeCoin.
At least tens of thousands of MemeCoin appear every day, but the vast majority of them will go to zero. Nevertheless, this does not stop people's enthusiasm for participating in MemeCoin, perhaps because for most retail investors, what they care about is not whether it will go to zero, but the so-called opportunity to get rich quickly.
For most retail investors, they believe that buying BTC and ETH now cannot make them rich overnight, so "sifting gold from the shit" seems to be seen by many retail investors as their only opportunity to get rich.
In the above text, we have shared a period on the perspective of on-chain tools. Although the operation at the method level may not easily find the secret to getting rich, it is better to have a method than none, and the key is to combine the method with practice and think more about the operation logic of smart money. If you persist, perhaps over time you can recognize which tokens are likely to rise, and thus take the lead in your token selection and trading ideas.
At the same time, you should also understand that copying or following the trading of smart money may also result in losses, so before deciding to do so, you need to make a risk/return assessment in advance and make a wise position allocation based on your risk tolerance. For example, if you plan to invest in 20 coins and the maximum loss you can bear for each coin is $1,000, then you can allocate $20,000 as the "zero-out capital" to play with MemeCoin.
Identifying the right MemeCoin at the right time is a process that requires you to spend time and energy to learn and explore. Perhaps there is no unique or perfect method, but the important thing is to find a method that suits you.
MemeCoin can be seen as the best carrier of market sentiment, and the crypto market can also bring out the extreme greed of human nature.
Although MemeCoin/on-chain meme can bring a large number of users in a relatively short period of time, and we can also find that many public chains have been copying the Meme Summer since the Solana Meme craze last year, perhaps MemeCoin/on-chain meme cannot bring value accumulation to a public chain, because value accumulation requires good product support, and the time from product appearance to maturity is needed.
Risk and opportunity often coexist, it's up to you how to make the choice and balance. If you still can't form your own method in the MemeCoin thing, then try to keep calm, no need to participate just because others are buying MemeCoin and getting rich overnight, instead, stick to buying some BTC, and learn to be friends with time.
That's all for this issue. You can check more articles through the Followin homepage. The above content is just my personal perspective and analysis, and is only for learning and communication, and does not constitute any investment advice.
