Of late, I have been studying about memes and figured out that there is a huge potential in this niche. The way #DOGE #SHIB delivered in the last bull run we are witnessing some similarities again. With the recent run in PEPE there has been a flurry of new memes entering the market. But the question is how to identify the next #PEPE. Today, I will tell you 3 simple steps to check before picking up any meme project.
Liquidity: Checking the liquidity of a meme token is indeed crucial. Locked liquidity can provide some assurance that the token's value won't be easily manipulated or subject to large fluctuations due to sudden sell-offs. Websites like UncX Network can help you verify if the liquidity is locked and provide details about the locking period. Make sure the liquidity is locked for at least 6 months.
Contract Type: Renounced contracts mean that the owner has relinquished control over the contract, which can be seen as a positive sign. It can imply that the token is community-driven, and decisions regarding the token's future are made by the community rather than a single individual or entity.
Burned Tokens: Tokens with a burn function can be appealing as they involve removing a portion of the token supply from circulation. This deflationary mechanism can potentially increase the value of the remaining tokens over time.
Make sure, that out of these 3 conditions at least 2 are satisfied before you enter the trade. If you are unable to comprehend any of the above points while scanning the contract just ensure the 1st condition of liquidity is satisfied.