After you see that smart money has made millions of dollars on a meme coin with only a few hundred U costs, your nerves are aroused, and your hope for life is rekindled. You decide to eat the food you delivered yourself. You start to gear up and endure the high cross-chain gas fees to exchange your only 50U for SOL and prepare to rush in, fantasizing about getting rich overnight, or at least 10,000 U, so that you don’t have to buy cockroach rice on Meituan, and you can order a 50-yuan takeout without gritting your teeth. You are even fantasizing about breaking your 50U into separate investments, fantasizing that you only need to hit a 100-fold meme coin. As a result, after waking up, you see that the K-line has become a straight line parallel to the horizontal axis, and your only 50U is gone. Tonight, you secretly decide to work hard to deliver a few more takeout orders, strive to earn another 50U and rush in again, looking forward to the patronage of the goddess of luck. In fact, there is no goddess of luck, only the ancient Greek god who controls the K-line. The smart money you see is also the project party’s trumpet, and the trading volume you see is also brushed out. Most of the token holders are also the project party’s trumpets. There is no so-called smart money, they are all the project party’s own people. You finally find out that you are the only fool.
There is not much data available for meme coin investment analysis, except for market popularity and narrative, which are indicators such as trading activity, liquidity and chip distribution. However, meme tokens generally have fake transactions and market manipulation, which can be detected by the above indicators. We can see that the two addresses holding $800 worth of MAGA in the figure below belong to the same entity.
We can also see the KAIJU token in the picture below. There are quite a lot of holders, but the amounts held by multiple addresses are very similar. It is suspected that they are shills of the project party. The price returned to zero soon.
We can look at the functions of the dogwiftools tool (https://dogwiftools.com/), which can help project parties use small accounts to obtain initial token allocations in advance (this is the so-called smart money you see), and can also automate transactions and comments. Is it shocking after seeing it? By using the dogwiftools tool, tokens can be created and issued quickly and continuously, relying on automated systems to make it look like multiple wallets are buying tokens. This creates a false impression of organic interest and attracts investors.
(Follow me, I will share how to identify this kind of embarrassing meme coin later)
