Scammers make $100,000 a day by creating memecoins.
But I have exposed their scheme, and I hope you do not fall for it.
Deep dive into memecoins and traps set by scammers 🧵👇
The bull market cycle is in full swing, and meme coins are starting to get attention - even on TikTok. But with all this hype, more and more scammers are flooding in, eager to scam your money. The craziest and most frightening thing is that even experienced traders can fall into these scam traps.
To understand how ridiculous this situation is, it all comes down to PumpFun. Of course, it was not created for scammers, but no one can stop them. With so many tokens being created every day, scammers take advantage of this, and they often go unnoticed. That's why I want to share this with you, so you won’t fall into their traps.
Moreover, due to the sheer number of memecoins, finding hidden gems becomes increasingly difficult.
If we look at Dune's analysis of PumpFun, only 1.4% of all tokens issued on the platform are able to enter Raydium.
And more interestingly - many tokens entering Raydium eventually drop to zero, making this 1.4% even smaller.
Finally, among that small portion of tokens, some are still fake - that’s the reality.
Most of the time, you can discover them through proper analysis, but...
The tricks of the scammers have become so skilled that even experienced traders fall into the trap, unable to understand how the tokens suddenly drop 99%.
That's why I want to show you exactly how it happens.
1. Create a token on PumpFun and quickly pump it into Raydium (you can see an example in the video below - 1-3 candles, the token on Raydium). New wallets get funded from CEX or mixers, without prior interaction with any tokens. Then, tokens start being bought from numerous wallets as if they were real holders, but without any promotion or advertising - this is unusual.
The wallets are not connected to each other, everything looks just right.
2. What do traders do when they see this growth?
They access @bubblemaps through trading platforms or directly on the website.
But after checking the token, they didn’t see any suspicious activity - the wallets were not linked, as I mentioned earlier. The token supply was reasonably distributed, and no one held a large amount of tokens. At this point, traders would think, 'Well, everything seems fine, let’s continue analyzing.'
3. Next, the following will happen:
At some point, token holders start buying ads from KOLs, paying out of pocket with some tokens.
KOLs start paying with tokens without even realizing that it will soon be discarded, resulting in losses for everyone.
Many traders see their influencers supporting a specific token and decide to trade too.
This increases the trading volume, the market cap gets higher, and the token eventually becomes popular on DEXScreener.
4. Next comes the key moment for the scammers - pulling the rug.
At this point, many traders have stopped checking the bubble chart, but this is exactly when all the tokens bought at the beginning start to concentrate in one wallet and are sold off when there is enough liquidity.
However, another scenario is becoming increasingly common.
Scammers do not transfer tokens to one wallet, but sell from hundreds or even thousands of wallets.
This happens if the entire process is automated, which is easy to set up nowadays.
5. But the most important question still remains: how do you avoid this outcome?
First, when you see tokens from PumpFun rising, go to the token page and check the activity in the comments.
Usually, if the token is organic, several diverse comments will appear immediately, such as mentions of dex payments, banner creation, etc.
If there isn’t any of this content, and the token is rising, it’s best to skip it and continue looking for gems.
6. You can also check the first batch of buyers for the token. Usually, the users will leave at least 2-5 comments and like posts.
For the scammers, you won’t see these. These accounts are new accounts that have never interacted with PumpFun.
And pay attention to the wallet funding of the first batch buyers. As I mentioned earlier, it usually comes from CEX or mixers, with the first transaction being a token purchase.
That's all for now - please choose wisely. If you think it’s good, you can follow me.
