MEME Addiction Prevention: Unveiling the Strategies of Professional MEME Creators

Golden Finance

The MEME market has recently attracted a large number of investors due to its high-frequency volatility and potential for substantial gains. However, this type of trading also carries significant risks, making it crucial for investors to approach it cautiously and avoid falling into the trap of addiction.

To achieve optimal results in MEME trading, it is essential to conduct thorough research on the long-term value and technical potential of projects. This approach will help identify more robust investment directions amidst the volatility.

The market, to function effectively, requires a balance of rationality and passion, rather than being dominated by a single stimulus.

Currently, the screening of MEME projects follows two lines: "speculation" and value discovery. This article analyzes high-frequency "speculative" trading methods, revealing how professional MEME creators exhaust investors' energy and capital.

1 Hour 15 Times Case

Taking the MEME token Agora as an example, after investors preliminarily judge that the project has the potential for an increase, they engage in scalping trading for arbitrage. Multiple scalping trades quickly double the investors' capital, and this is just the beginning. After the second-to-last purchase, Agora rapidly surged to a 15-fold increase within 30 minutes. Due to the lack of take-profit and stop-loss features on the web trading interface, the actual profit was far from 15 times. However, stimulated by the 15-fold increase, investors fell into a cycle of continued speculation, ultimately losing everything amidst the volatility.

PS: Scalping is a high-frequency trading strategy where traders capture short-term price fluctuations in stocks, futures, or other financial instruments to make a profit. The core idea of scalping is to quickly enter and exit trades based on short-term market fluctuations, gaining small profits on each trade but accumulating returns through multiple transactions.

30 Seconds Analysis to 10 Minutes Capital Zeroing "Strategy"

MEME trading is a high-intensity game of information capture and rapid execution, and PVP trading has evolved a structured indicator system for project screening. In this model, the analysis and execution phases are extremely compressed, usually completed in just a few minutes, especially when a project's market cap has just reached N times the internal market cap (about $68,000). At this point, N is usually less than 10, meaning the market cap is below $600,000, and market competition is exceptionally fierce. However, once a project peaks and then falls back, these new projects are often quickly abandoned by investors, leading to a sharp decline in interest.

Release Time: 30 minutes is usually a critical dividing line, as most projects begin to show signs of dumping and profit-taking about 30 minutes after release (data collected around 6 PM Beijing time).

Market Cap Size: Projects with a market cap around $300,000 are generally more reasonable, while those reaching tens of millions of dollars may carry a higher risk of exit scams.

Exit Scam Risk: The GMGN platform marks developers' operational records in historical projects, such as withdrawing liquidity, dumping, or running away. These markers are important indicators for assessing project stability.

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 indirect evidence for assessing project health.

Order Book Health Indicator (X = Trading Volume / Market Cap): Typically, in the early stages of a project, the X value approaches 2, followed by a downward-opening parabolic trend. When the parabola peaks, trading volume hits a new high, and market cap approaches a cyclical high point, indicating that PVP trading activity has reached its climax. Afterward, trading volume decreases, market cap drops, and "smart money" begins to exit.

Additionally, trading volume can provide a preliminary judgment on tokens. For example, a single trade amount hitting a new high may indicate the entry of large funds, which is positive for the market. However, many trading platforms currently do not provide trend changes in single trade amounts or statistics on trading frequency, so relying solely on trading volume data may not be sufficient for comprehensive market analysis.

TOP 10 Address Indicator: This indicator analyzes the top ten addresses by token holdings and their proportion of total supply. Generally, a holding ratio below 20% for the top ten addresses is considered healthy, indicating a more dispersed token distribution, stronger community consensus, and relatively lower selling risk.

Profit Expectation Formula: As the market cap of a token grows from $300,000 to $3 million, its success rate is often very low. Investors typically invest 1-10 SOL in a single project, but excessive liquidity addition may lead to a price surge, triggering greed among holders and rapid profit-taking. For example, if the success rate of a project selected by investors is P=10