Meme Coin research or how not to fall victim to the market

Let's talk about how to reduce risks when farming Meteora or buying memcoins. In order not to get scammed or become exit liquidity for unscrupulous teams or other token holders, you need to take the initial analysis of the token more seriously and look at it from different angles. Scammers have long ago learned to camouflage themselves very well, but a closer look can still reveal signs that point to low-quality or unscrupulous projects.

Let's understand what you need to pay attention to when choosing a pool / analyzing a token.

Price and Volume

The first thing to pay attention to is volumes and price history. For example, the logic could be as follows: minute volumes of pools I try to get into should exceed 100k$. MarketCap of pools that I try to choose starts from 2m$ (the logic is simple, if the token is folded twice, the MC will be equal to 1m$ (the value that affects psychologically + 0.5 Fibonacci level), and from this value a rebound is likely. Next, I look at the initial price behavior. I prefer an organic gradual rise, rather than a sudden jump after a token migration with huge volumes followed by a sharp drop. Such situations usually occur at token launches, when people warm up in social networks for a long time, then publish CA before migration and then there is a “sniper battle”, the price flies away by 1-2m$ and after that “snipers” quietly fix their profits, and the price of the token tends to zero.

For me, the most preferred behavior is shown in the chart below. The price is gradually going upward with subsequent corrections. Each new price level is accompanied by volume growth and “change of hands”.

The picture below is an example of a token chart whose price flew up and then went into a correction followed by a drop in volume, which is very likely to result in sharp price movements and unlikely to go up.

Social

In the upper left corner of the https://gmgn.ai/ you can see the project's social media, website, and repository.

We are looking for confirmation that this token was launched by a specific project or person. If a token contract is specified in a tweet, do not rush to be 100% sure that this information is true. The account could be hacked. Look for additional information in other social networks or use Twitter search, before you could have already made such an analysis and posted information on it.

If the token was released on pump.fun, search for it and go to the token developer tab.

In the “coins created” tab we can see what other tokens were issued by the developer and what the price behavior of these tokens was.

Token audit

In the top right corner of the gmgn website, there are some useful metrics to look at when choosing a token to provide liquidity or trade.

In the audit tab you can find such token red flags as the volume of tokens in the top 10 holdings, “Blacklist” of the token, “NoMint” - no possibility of further token issuance and “Burnt” - whether tokens were “burnt” for liquidity when the pool was created.

These parameters are definitely worth paying attention to and it is good when they are all green. When launching tokens not from the pump.fun site, the Burnt parameter may be red, so you should check the legitimacy of the token. For example, TRUMP token had this parameter red.

There is also a “BlueChip” parameter. This is the percentage of wallets that own this token and that also own BlueChip tokens (recognized and high-value tokens). The higher this percentage is, the higher the credibility of the token. However, other indicators should always be taken into account.

Next, we go to the “snipers” tab. It shows the volume of token that the “snipers” were able to buy and what percentage they have at the moment.

It is desirable that the percentage of “snipers” at the time of opening a position has as low a value as possible.

Bubble Map

The gmgn site has a very handy built-in tool called Bubble Map. It shows the correlation between the wallet owners of a given token.

Two maps of token distribution among participants are shown for comparison purposes

You should not choose a token where the entire sapplay is controlled by a single wallet.

Dev Holding

Go to the Avtivity > DEV tab, click on any transaction, and you will see the value Unrealized. It's ideal if the token developer holds a small portion or has sold all of it at all. Selling tokens by the developer can “drop” the price and cause a subsequent avalanche of sales (by bots and hands), which can devalue the token.

This, of course, does not negate the fact that a developer could make a simultaneous sale and purchase on two unrelated wallets, but still a developer's sale of his tokens inspires more confidence in the token.

The developer can also block his tokens on the https://app.streamflow.finance, which is also a positive thing.

Bundles

Bundles (“bundles”) are combinations of several transactions into one for their simultaneous execution. I.e., when creating a token, someone can simultaneously buy out his token in several transactions and control a large part of the supply. We talked more about them in the “Bundles” section.

This indicator is very important to consider when choosing a token!

Smart Wallets

The presence of Smart Wallets adds “legitimacy” to the token to some extent. The number of Smart Wallets can be viewed either in gmgn in the Holders > Smart tab, or by using third-party bots, such as for example https://t.me/smartwalletfollowing

A large number of Smart Wallets usually indicates interest in the token from market players.

Holders

Be sure to look at the Holders tab on gmgn. Sometimes you can find a large number of red marks there.

Realized и Unrealized Profit

In the Traders > All tab you can sort the wallets by realized and unrealized profit and see how much potential profit someone has now and who has already sold how much. If there is still something to sell in the Unrealized column, you should think: will the token continue to grow? If everyone has already sold, then the pressure on the price will be minimal.

These parameters and metrics can help you choose a token for LP or trading. However, it is worth remembering that no one can give you any guarantees about the price movement of a token.