The Memecoin market is full of opportunities, but it is also rife with "Rug Pull" traps. Taking five minutes to conduct a quick due diligence using Bubblemaps before investing can help you avoid 90% of scams. Let's look at a practical case to see how to identify danger signals.
Scenario: A new Memecoin has just launched on Raydium.
Step 1: Check the initial liquidity providers.
Enter the contract address of the Memecoin in Bubblemaps. First, find the large bubble that represents the Raydium liquidity pool. Click on it to see who initially provided the liquidity. If the wallet providing liquidity also holds a large amount (for example, over 20%) of the token supply, this is a huge red flag. It means that the project team can withdraw liquidity at any time, causing the token to plummet to zero.
Step 2: Analyze the correlation of the Top 10 holders.
Carefully observe the top ten holding bubbles. Are they dispersed and independent, or are they all connected to the same source wallet? If Bubblemaps shows that among the top ten wallets, seven or eight received tokens from the same "deployer" or "early wallet," this indicates that the chips are highly concentrated in the hands of the project team or insiders. They can easily collaborate to dump the tokens and harvest from latecomers. A healthy distribution should involve a large number of independent wallets purchasing from the DEX.
Step 3: Be cautious of "disguised" community wallets.
Some project teams may claim that a large wallet is a "marketing wallet" or "community treasury." Click on this wallet to check its outflow records. Is it making small payments in multiple batches to partners, or is it transferring large amounts directly to a CEX or anonymous address? The latter behavior is highly likely to indicate that the team is cashing out.
By following these three simple checks, you can filter out projects with obvious structural issues, greatly increasing your survival rate in the Memecoin market. #Bubblemaps $BMT
