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 seem to have made quite good gains. As shown in the image below.
The recent hot trend of Memecoin, 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 at 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 sort out from 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 difference between MemeCoin, on-chain meme, and large MC memecoin:
MemeCoin literally means meme coin, since Meme belongs to the concept of meme, then we can see them as a kind of idea and behavior, and have a certain degree of propagation, with specific phenomena or certain symbolic meaning, 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. are all openly supported by the market maker DWF, as shown in the figure below.
On-chain meme 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 usually created anonymously, and mainly relies on violent pump to attract uninformed retail investors to buy the top, and there is always the risk of rug. 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 overweight, 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 content, how to discover and screen 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 (currently the platform supports SOL, TRON, Base, ETH and Blast five chains), then click the "Hot" button in the top navigation bar. As shown in the figure 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 figure below.
Here we take GOAT in the above figure as an example, click on the token name to enter the details page, and then continue to click the "Traders" button at the bottom of the corresponding page, and sort by "Realized Profit". As shown in the figure 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 insider wallet
- Even if the seemingly normal smart money wallet, it may also be problematic, as we mentioned in the previous article (October 13th), now some projects will use the way of buying old wallets to lure orders
- Truly effective smart money wallets are relatively difficult 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 at the same time), 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, enter the corresponding wallet address for search, on the query result page we can see some basic information of the wallet, such as through the Activity page can view the historical transaction activities of the wallet, through the Token Pnl page can view the situation of all tokens participated in transactions by the wallet. As shown in the figure below.
If you think the wallet is worth observing or tracking, you can click the "Add" button in the upper right corner to add it to the observation list, and in the observation list, you can also set a remark name for each wallet address or classify and manage them.
Step 3: Use Telegram Bots for real-time tracking of wallet transactions
Many people like to add the observed 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, so 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 figure below.
And there are many similar bot tools like EVMTrackerBot, such as TrojanOnSolana, MonitorAlpha, MaestroBots, etc., interested partners can go and experience or research by themselves.
Step 4: Conduct necessary checks on the token community activity and token contract security
If you find through monitoring some smart money wallets that they are actively buying certain new Memecoin, and you also decide to participate in following their trades, then before actually trading, you can also consider checking some aspects of the token.
For example, quickly check the token's social media.
The goal of this is to ensure that the token community can maintain a high level 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 a brainwashing or CX nature (considering only the price aspect, not the nature of 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. Telegram needs to be joined and experienced, while Twitter can be assisted by some tools for auxiliary inspection.
Here we 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 some very new projects cannot be queried, 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 to completely verify the security of many MemeCoins from the root, we can still try to reduce the risk of trading tokens to some extent through checking aspects such as pool locking status, Mint discarding status, and blacklist.
What we often see now is the so-called . Pixiu is a common term we use, and the foreign habit is to call it Honeypot Token. Pixiu is a mythical beast in China, and because it violated the precepts in the Heavenly Palace, it was beaten by the Jade Emperor and its anus was sealed, so it can only eat and not defecate, and it can help people gather wealth. But in the crypto field, Pixiu has become an ominous beast, the natural enemy of the "cabbage", which means that the corresponding token can only be bought but not sold by ordinary people, only the internal addresses of the project party can sell.
For such problems, we can also use some on-chain tools for additional inspection, such as honeypot (supporting Ethereum, BSC and Base chain), rugdoc (supporting BSC chain), rugcheck (supporting SOL chain), solsniffe (supporting SOL chain), bscheck (supporting Ethereum and BSC chain) and so on.
But one more point to remind here is that these tools generally only perform some relatively routine detection on the contract code, so for the same contract address, some honeypot detection tools may show it as normal, while others may indicate a risk, and some new contracts may not be detected by the current tools in time. Therefore, in terms of security, if you cannot effectively check with 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, whether there is a conspiracy group, etc.
Step 5: Conduct quick trading
There are two ways to do 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 platform, the ones with relatively high usage rates currently include Photon, bullx, etc. Here we take Photon as an example for a simple demonstration. This platform claims to be the fastest trading platform on Solana, which can realize the quick buying and selling of any token, execute 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 on the same chain there are 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 MemeCoins.
At least tens of thousands of MemeCoins appear every day, but the vast majority of them will go to zero. Yet this does not stop people from participating in MemeCoins, perhaps because for retail investors, it is not whether they will go to zero that matters, 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 this level may not easily find the secret to getting rich, but having a method is better than having no method, and the key here is that you should combine the method with practice and think more about the operation logic of smart money. If you can persist, perhaps over time you can recognize which tokens are likely to rise, and thus be ahead of others in your token selection and trading ideas.
At the same time, you also need to 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 of "zero-out capital" to play with MemeCoins.
Identifying the right MemeCoins 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.
MemeCoins can be seen as the best carrier of market sentiment, and the crypto market can bring out the greed of human nature to the extreme.
Although MemeCoins/on-chain memes can bring a large number of users in a relatively short period of time, and since the Solana Meme craze last year, we can also find that many public chains are copying the Meme Summer. Even if users represent capital and liquidity, perhaps MemeCoins/on-chain memes cannot bring value deposition to a public chain, because value deposition requires good product support, and the time from product appearance to maturity is needed.
Risk and opportunity are often together, it's up to you how to make the choice and balance. If you still can't form your own method on the MemeCoins thing, then try to keep yourself calm, no need to participate just for the sake of participating, don't get impatient just because you see others get rich overnight with MemeCoins, it's better to 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 homepage. The above content is just personal perspective and analysis, and is only for learning and communication, and does not constitute any investment advice.
