In 2025, we want to be the "Emperor of the Chain". Recently, the traffic on the chain has exploded, and the Trump narrative has emerged. Meme coins have become the biggest dark horse in this round of bull market! However, the operation on the chain is difficult. Today, I will make a tutorial on how to use GMGN to play meme coins (no Guangzi)
GMGN is a website that combines Meme coin data dashboard and trading tools. On-chain transactions are activities and transactions conducted directly on the blockchain, independent of centralized exchanges such as Binance and OKX. Usually, only the token address (CA) is needed to buy. Paste a string of letters like "FUAfBo2j·······NucisEHqnNebaRxM1P" in the GMGN search box to find this token.
Every day, there are hundreds of thousands of Meme coins launched on-chain, and there may be concentrated buying by smart money. When choosing what to focus on, it is best to consider your own trading habits to avoid too many wallets causing information noise. It is recommended to track wallets with a style similar to your own to ensure the efficiency of the information flow. Note that checking contract security should not be overlooked, as many smart money also randomly buy without considering contract safety.
Tracking smart money means tracking the wallet addresses of users who have achieved higher returns on-chain, observing their chosen investment targets. After focusing on smart money, GMGN also provides a feature to bind Telegram notifications, so that you can receive immediate notifications once the wallets you follow take any actions, including buying, selling, increasing positions, adding funds, establishing positions, and liquidating, etc. You can also click on any smart money address interface for more detailed information, including holding analysis, profit and loss distribution, trading activities, etc.
When a new project successfully deploys using the automatic token distribution tool http://pump.fun, users can use SOL to purchase the project's tokens. When its market value reaches $69,000, the project's liquidity will be automatically added from http://pump.fun to Raydium.
Before reaching $69,000, we call it the internal market. At this time, the project is in a very early stage, and the risk is extremely high;
Upon reaching $69,000 and successfully adding liquidity to Raydium, we call it the external market. At this point, the project has further developed, and the risks have decreased.
Finding golden dogs, the most common way is to scan for promotions, following a large number of Chinese and English KOL accounts related to Meme coins on Twitter, and joining various discussion groups to get the latest information and updates. Another method is to scan the chain, closely monitoring tokens that move from the internal market to the external market, quickly assessing whether these tokens are worth investing in.
It is recommended to mainly focus on tokens that have entered the external market. Although there is still a high risk in the external market, compared to the internal market, the risks have significantly decreased and are relatively friendly for newcomers. Most external markets achieving a market value of millions are also few, leaving considerable space for profits.
Note that entering the external market does not guarantee a 100% increase; there are also many tokens that quickly go to zero after opening in the external market. Please always remain cautious during the investment process! By patiently monitoring and analyzing the performance of these tokens, we can judge their potential and investment value, ultimately achieving profitability.
Once you have learned how to use GMGN to find new coins on-chain, the next step is to analyze and choose worthwhile targets from a pile of Meme coins.
Specifically, it should be judged based on hotspots, narratives, market capitalization, community, and market dynamics whether to buy. Different types of Meme coin strategies also vary:
Hotspot Type: These tokens often become popular rapidly within a short time due to specific events or trends, and may have high initial gains, with potential space reaching more than 10 times, transitioning from a market cap of millions to tens of millions.
However, if the hotspot is not sustainable, the price has no support points, there are no endorsements from celebrities, it has not reached a new narrative level, has not formed a large influence community, and has not experienced an exciting low-probability event, it may gradually lose liquidity, with prices continuously declining.
Narrative Type: These targets often do not rely on short-term hotspots for growth but gradually rise from small to large market capitalization around a certain narrative or community.
Unlike the instant surges of hotspot-type tokens, they may experience multiple stages of stable growth, usually with a market cap between a few million to tens of millions of dollars, and at their peak, even surpassing a hundred million.
Liquidity Pool Size: Ideally, the liquidity pool should be above 100 SOL. Although it is possible to participate with lower values (such as tens of SOL), the risks are higher as it is easily affected by large holders' sell-offs. However, also be wary of some scammers using large pools to mislead users.
Real Transaction Count: Observe the real transaction count after the opening. If the transaction count exceeds 60 within 1 minute, or exceeds 600 within 5 minutes, it indicates that the token is relatively safe. Ensure that these transactions are real and not wash trades.
Mint Permission Abandonment: If the project team has abandoned the permission to mint new tokens, it is relatively safe. This means they cannot arbitrarily mint new tokens, thus reducing the risk of sell-offs.
Blacklist: Confirm whether the project team has the right to blacklist any wallet. If 'no', it is relatively safe; if 'yes', there may be risks as it means that certain users may be restricted from selling tokens.
Burning Liquidity Pool: Check whether the liquidity pool (LP) has been burned. The higher the burn rate, the lower the risk since the project team cannot withdraw liquidity. A 100% burn indicates that the project team cannot withdraw funds, providing the highest security. If the LP has not been burned, there is about a 60% chance of a 'rug pull' (where developers suddenly withdraw funds). This step is critical to assess the project's security.
Top 10 Holdings: Monitor whether the total holdings of the top 10 holders are less than 30% of the total supply. If so, it indicates that the token's holdings are decentralized, reducing the risk of manipulation by a single large holder.
Monitor for Wash Trading: Observe whether there is any occurrence of wash trading; the lower the wash trading ratio, the better. A high ratio may indicate that the project team is manipulating the market, increasing investment risks. It is recommended that the wash trading ratio does not exceed 20%. Ideally, having no wash trading at all is a better situation.
Analyze Large Holder Attacks: If a large holder rapidly intervenes at the opening while the liquidity pool's depth is shallow, there is a 90% chance this will lead to a price crash, so caution is needed.
By using the above indicators, you can more effectively filter out Meme coins that are safe and have investment potential, reducing risks and increasing success rates.
The advanced version will continue next time; by the way, BTC has reached a historical new high again.
However, recently the on-chain activity has been very high, Bitcoin is still on the way to the peak, and the Meme track continues to create wealth myths. As a newcomer, it is very easy to develop FOMO emotions, which is understandable. But I remind everyone once again, there are hundreds of thousands of Meme coins appearing on-chain every day, and most will go to zero. The probability of finding a golden dog is extremely low. In summary, the higher the return, the higher the risk, please be responsible for yourself!
#BTC☀ #memecoins
