Author: Revc, Golden Finance

The AI Agent sector has recently attracted a large number of investors due to extreme volatility, and its high return potential creates a unique trading experience. MEME trading stimulates excitement and addiction through 'rollercoaster-like jumps' in balances, instantly releasing dopamine that can be thrilling yet addictive, putting investors to the test psychologically and emotionally.

For investors, while enjoying the profits brought by market volatility, it is crucial to be aware of the erosion of addictive psychology and avoid falling into emotional trading. Meanwhile, by deeply researching the long-term value and technical potential of projects, one can find more robust investment directions amid the volatility. The market needs a balance of rationality and passion, rather than being dominated by single stimuli.

Currently, MEME project selection follows two lines: 'speculation' and value discovery. This article analyzes high-frequency 'speculative' operating methods, revealing how professional MEME creators deplete investors' energy and capital.

1 hour and 15 times case

Taking the MEME token Agora as an example, investors initially judge that the project has the potential for an increase, then engage in scalping trading for arbitrage. Multiple scalping transactions quickly double the investor's principal, and this is just the beginning. After the second-to-last buy, Agora rapidly increased to 15 times in 30 minutes. Due to the lack of take-profit and stop-loss features on the web trading interface, the actual profits have not reached 15 times, but spurred by the 15-fold increase, investors fall into a cycle of continued speculation, ultimately losing everything in the volatility.

PS: Scalping is a high-frequency trading strategy where traders profit from capturing short-term price fluctuations in stocks, futures, or other financial instruments. The core idea of scalping is to quickly enter and exit trades using the market's short-term fluctuations, making small profits on each trade, but accumulating gains through multiple transactions.

30 seconds of analysis leading to zero principal in 10 minutes 'strategy'

MEME trading is a high-intensity game of information capture and rapid execution, while PVP trading has evolved a structured indicator system for project filtering. 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 (around $68,000). At this point, N is usually less than 10, meaning the market cap is below $600,000, making market competition exceptionally fierce. However, once a project peaks and falls back, such new listings are often quickly abandoned by investors, and the hype rapidly diminishes.

1. Project judgment and screening: In the new listing page, sort by launch time, at which point projects typically exhibit trading volume 3-5 times their market cap, with blue-chip indexes in the range of 0-1.2%. During quick screening on the primary page, focus on the following indicators: rapid growth in address numbers, relatively low market cap (avoid choosing projects with market caps reaching the million-dollar level), and projects that have not shown significant pullbacks within the 1-5 minute timeframe while still continuously hitting new highs.

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

3. Market capital size: Projects with a market cap around $300,000 are usually reasonable, while projects reaching the million-dollar level may carry higher risks of running away.

4. Risk of running away: The GMGN platform will mark developers' operational records in historical projects, such as withdrawing from pools, crashing, or developers running away. These marks are crucial indicators for assessing project stability.

5. Blue-chip index: As a growth indicator, the blue-chip index reflects investors' purchasing power and community consensus by analyzing the situation of blue-chip tokens held by investors, providing a side basis for judging the project's health.

6. Order book health indicator (X = trading volume / market cap): Typically, in the early stages of a project, the X value is close to 2, and then presents a downward-opening parabolic trend. When the parabola peaks, trading volume hits new highs, and market cap approaches cyclical highs, indicating that PVP trading activity has reached its peak. Afterward, trading volume decreases, market cap declines, and 'smart money' starts to exit.

Additionally, initial judgments on tokens can be made through trading volume. For instance, a single transaction amount hitting a new high may indicate large funds entering the market, which has positive implications for market performance. However, many trading platforms currently do not provide statistics on changes in single transaction amounts or trading frequency. Relying solely on trading volume data may not be sufficient for a comprehensive analysis of market trends.

7. Marked traders: Typically, these are leading MEME communities and DEX platforms that reflect whether the promotion has covered mainstream communities, but such addresses usually withdraw from pools quickly.

8. TOP10 address metric: This metric is used to analyze the top ten addresses by token holdings and their proportion of total supply. Generally speaking, a holding ratio of less than 20% for the top ten addresses is considered healthy, indicating a more dispersed token distribution, stronger community consensus, and relatively lower selling risks.

9. Profit expectation formula: As a token's market cap 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 can lead to price surges, triggering holders' greed and rapid profit-taking. For example, if the success rate for projects selected by investors is P=10%, and funds are lost when failed, then according to 1/P=10, a single project needs to achieve a 1000% return to break even. In such cases, projects with market caps in the hundreds of thousands of dollars resemble a probability game.

10. New coin priority strategy: As the screening and analysis framework for MEME tokens matures, creators often tend to issue new tokens to more easily manipulate related indicators. This new coin issuance model not only caters to the market's preference for 'innovation' but also increases the likelihood of attracting funds in the short term.

11. Same concept, prioritize Base: Taking the recent Percy concept promoted by Musk as an example, the performance of the Base network significantly outperforms that of Solana. This is because Base network users are mostly seasoned DeFi users, whose purchasing power is typically 3-4 times that of Solana users. Additionally, whale entries are more frequent in transactions on Base, further enhancing its market performance and liquidity.

12. Doubling your capital strategy: Since PVP is a high-frequency and high-risk trading model, users can easily be affected by emotional fluctuations during the process. The 'doubling your capital' strategy is a relatively scientific and psychologically lighter method. By reclaiming the initial investment after doubling the profits, investors can more easily hold the remaining assets for the long term, thereby freeing themselves from the pressure and distress caused by short-term emotional fluctuations.

13. Motivation analysis for pool adjustments: In medium to large projects, investors typically pair tokens with SOL and invest in Raydium liquidity pools to obtain up to 999.99% APR over 24 hours. The core essence of DeFi is to short volatility, and when paired assets show a one-sided market trend, liquidity providers may face impermanent loss. When investors increase liquidity pool assets, it usually indicates their optimism about the corresponding asset's short-term rise, but the extent may be limited, reflecting signals of short-term consolidation. Conversely, when investors reduce pool assets, it often suggests a bearish outlook on a particular asset, possibly accompanied by selling or readjusting the asset's exchange ratio.

14. Observation of new address activity: Regular market-making is seen as a danger signal, such as large amounts triggering buy and sell orders. The trading habits of developer addresses can also be studied.

By understanding the above methods and having a preliminary analysis of domestic projects, congratulations, you are about to fall into the trap of professional MEME operators, who will create a perfect MEME on the indicators to fit your project analysis and screening framework, then fabricate narratives, AI + founder interactions + hackathons, among other things. Coupled with the emotional ups and downs brought by high-frequency trading, your judgment of the project will rapidly diminish, trading discipline will be broken, and losses will follow. Therefore, this article is a 'MEME addiction prevention article'; regardless of which channel investors learn about the 'wealth code' from, there remains an information gap because PVP must attract buyers. Thus, new Web3 users should avoid becoming addicted to the MEME sector and gradually cultivate their ability to discover value.

For framework-type AI Agent projects, attention can be paid to the Forks page in the GitHub repository to see which projects have referenced Eliza's code. However, even so, it's essential to carefully evaluate the project's development progress and actual potential to avoid blindly following investment trends.

Last MEME shock suggestion - arrange your time reasonably and take care of your rest!!

Summary

MEME trading is not only a test of innovation and risk tolerance but also fully demonstrates the potential of cutting-edge concepts like AI Agents in technological breakthroughs and decentralized narratives. Such high-volatility markets provide sharp investors with quick profit opportunities while also driving the exploration and development of blockchain technology, token economic models, and AI application scenarios. In this environment, investors must continuously optimize their instant decision-making abilities and market adaptability to find and apply advantageous strategies in a high-risk market.

However, the high-frequency volatility of the MEME market also carries great risks. Dramatic price fluctuations can easily trigger emotional trading, causing investors to fall into a cycle of 'blind speculation'. The dopamine rush from short-term gains may lead one to ignore the logic of long-term value investing, while an over-reliance on short-term trading often results in significant capital losses. This is especially true for projects that lack solid technical support or real application scenarios. Once the hype subsides, they can easily devolve into pure speculative tools, causing investors to suffer substantial losses. Such losses not only undermine individual investment confidence but can also have negative effects on the healthy development of the entire cryptocurrency industry, further exacerbating market instability.

For investors, rationality and a long-term perspective are particularly important. When participating in MEME trading, one should combine technical analysis with project value discovery to avoid being swept away by short-term fluctuations. Only by finding a balance between risk and reward can one achieve genuine sustainable profits in this highly volatile market.