bitcoin
bitcoin

$94799.262882 USD

-2.19%

ethereum
ethereum

$3316.149164 USD

-1.85%

tether
tether

$0.999504 USD

-0.02%

xrp
xrp

$2.359585 USD

3.26%

bnb
bnb

$692.929540 USD

-0.15%

solana
solana

$196.702817 USD

-3.08%

dogecoin
dogecoin

$0.340186 USD

-3.43%

usd-coin
usd-coin

$0.999860 USD

-0.02%

cardano
cardano

$0.940063 USD

-5.95%

tron
tron

$0.249653 USD

-1.30%

avalanche
avalanche

$37.516318 USD

-5.35%

sui
sui

$4.751136 USD

-1.73%

toncoin
toncoin

$5.304204 USD

-0.38%

chainlink
chainlink

$20.426967 USD

-4.56%

stellar
stellar

$0.420654 USD

0.14%

Cryptocurrency News Articles

MEME Addiction Article - How Professional MEME Creators Consume Investors' Energy and Capital

Jan 08, 2025 at 12:06 pm

The AI Agent track has attracted a large number of investors recently due to its extreme volatility, and its high-yield potential has created a unique trading experience.

MEME Addiction Article - How Professional MEME Creators Consume Investors' Energy and Capital

The AI Agent track has recently attracted a large number of investors due to its extreme volatility, and its high-yield potential has created a unique trading experience. Scalping transactions, PVP trading, and other high-frequency operating methods have emerged, testing investors at the psychological and emotional levels.

For investors, while enjoying the benefits brought by market fluctuations, they should be wary of the erosion of addiction and avoid emotional operations. At the same time, by deeply studying the long-term value and technical potential of the project, they can find a more stable investment direction in the fluctuations. The market needs to have both rationality and passion, rather than being dominated by a single stimulus.

Currently, MEME project screening follows two lines: "speculation" and value discovery. This article analyzes the high-frequency "speculative" operation methods and reveals how professional MEME creators consume investors' energy and capital.

15 times the case in 1 hour

Taking the MEME token Agora as an example, investors initially judged that the project had the potential to rise, and then carried out scalping transactions for arbitrage. Multiple scalping transactions allowed investors to quickly double their principal, and this was just the beginning. After the penultimate purchase, Agora quickly increased by 15 times within 30 minutes. Since the trading interface on the web side did not have stop-profit and stop-loss functions, the actual profit was far from 15 times. However, under the stimulation of the 15-fold increase, investors fell into a cycle of continued speculation and eventually lost everything in the volatility.

PS: Scalping is a high-frequency trading strategy in which traders make profits by capturing short-term price fluctuations in stocks, futures or other financial instruments. The core idea of scalping is to use short-term market fluctuations to quickly enter and exit transactions, making smaller profits for each transaction, but accumulating profits through multiple transactions.

The strategy of analyzing from 30 seconds to zeroing out the principal in 10 minutes

MEME trading is a high-intensity game of information capture and rapid execution, while PVP trading has evolved a framework indicator system for screening projects. In this mode, the analysis and execution links are extremely compressed, usually only taking a few minutes to complete, especially when the project market value has just reached N times the internal market value (about 68,000 US dollars). At this time, N is usually less than 10, that is, the market value is less than 600,000 US dollars, and the market competition is extremely fierce. However, once the project hits a high and falls back, such new projects are often quickly abandoned by investors and the heat drops sharply.

1. Project judgment and screening: On the new listings page, projects are sorted by launch time. At this time, projects usually have a trading volume of 3-5 times the market value, and a blue chip index of 0-1.2%. When quickly screening on the first-level page, focus on the following indicators: fast growth in the number of addresses, low market value (avoid selecting projects with a market value of tens of millions of dollars), and projects that have not experienced a sharp pullback within 1-5 minutes and are still setting new highs.

2. Release time: 30 minutes is usually a critical dividing line. Most projects will begin to show signs of market crash and closing about 30 minutes after release (data collected from around 6 pm Beijing time).

3. Market capitalization: Projects with a market capitalization of around $300,000 are usually more reasonable, while projects with a market capitalization of tens of millions of dollars may have a higher risk of running away.

4. Risk of running away: The GMGN platform will mark the operation records of developers in historical projects, such as pool withdrawal, market crash or developer running away. These marks are important indicators for evaluating project stability.

5. Blue Chip Index: As a growth indicator, the Blue Chip Index reflects investors’ purchasing power and community consensus by analyzing the blue chip tokens held by investors, providing an indirect basis for judging the health of the project.

6. Order book health indicator (X = trading volume / market value): Usually in the early stage of the project, the X value is close to 2, and then it shows a downward opening parabola trend. When the parabola reaches its peak, the trading volume hits a new high and the market value is close to the cycle high, which usually indicates that PVP trading activities have reached a climax. After that, the trading volume decreases, the market value decreases, and the "smart money" begins to withdraw.

In addition, the trading volume can be used to make a preliminary judgment on the token. For example, a record high in the amount of a single transaction may mean the entry of large funds, which has a positive

News source:www.panewslab.com

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!

If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.

Other articles published on Jan 09, 2025