On October 24th, OKX and Binance successively listed the $GOAT contract, with $GOAT's market value peaking at 800 million USD, firmly establishing itself as the leader in AI memes. As AI memes began to go viral, countless wealth codes surfaced like machine guns every day. Many partners privately message me, expressing anxiety about watching others make money, becoming reluctant to jump in, buying timidly, missing out on gains, selling off after making a little profit, and of course, more often than not, losing everything. To address this, I've summarized a set of meme profit-making methodologies, including meme selection and timing choices for entry, allowing everyone to better grasp the wealth codes of memes based on their own investment styles.
With so many memes, which one should I rush into?
When you see a popular meme, should you rush in? I have summarized three checks, three observations, and two assessments.
The three checks are to examine contract safety. Avoid situations where the pool is pulled just minutes after being listed.
1) Check if it's open-source. http://tokensniffer.com
2) Check if it's a honeypot contract. https://honeypot.is
3) Check if the creator has relinquished permissions. https://therugcheck.com
All three are essential and must be done for safety checks when diving into new coins.
The three observations involve collecting on-chain data information.
1) Check if the pool creator has previously scammed others. The simplest way is to search across all channels on the internet; generally, those with a dark history will be exposed.
2) Check the holding ratio of large investors; it's best if the total holdings of the top ten investors do not exceed 20% of the total coin amount, otherwise it indicates unilateral pump and dump.
3) Check the number of holding addresses; the more holding addresses, the better, as this is key to whether it can succeed later.
Two assessments: assessing market value and popularity.
1) Assess market value; for newly initiated memes, a market value not exceeding 200,000 is more stable. For projects that have already gained traction, a market value not exceeding 5 million is best. Of course, for some leading potential coins with new narratives, this market value standard can be relaxed, allowing for phased entry.
2) Assess media popularity. The most intuitive way is to search for keywords across various channels, looking at the frequency of project mentions and whether the individuals mentioned are relevant KOLs in the field. Additionally, you can analyze the project's official Twitter; here’s a recommended Twitter analysis tool: https://tweetscout.io. This site can provide a comprehensive score for Twitter accounts based on interaction numbers, follower counts, and other social data; a score of 200 is suggested as an excellent benchmark. If the social score is below 200, it indicates that the project's community is not active and the quality of activity is poor, so one should be cautious about participating at this stage or consider abandoning the project.
How to choose the timing for entry?
99% of MEME coins come quickly and leave quickly, so we just need to seize the phase-based profits. Here are four choices for entry timing:
1) Rush to the original creator with a new narrative first. For example, $GOAT is the first AI meme, while other clones need to have new stories; otherwise, they will quickly be submerged.
2) If favorable news is released mid-way, you can continue to increase your holdings, such as a large institution investing or the project team making progress. However, it should be reminded that after favorable news is released, do not rush to chase the big green candles; wait for the market sentiment to calm before increasing your holdings.
3) Observe changes in market value and gradually increase your holdings when it goes live on various levels of exchanges. Typically, meme coins take a long time to go live on top centralized exchanges; for example, Shiba Inu took several years, Bonk took half a year, Pepe took 2 months, while bome is an exception, taking just 3 days. Based on past experience, generally, when a meme's market value reaches the tens of millions, it will start to be listed on some second and third-tier exchanges; at this point, you can consider increasing your holdings. When the market value reaches over 100 million and community enthusiasm remains strong, it will be listed on more second-tier exchanges. When the market value breaks 500 million, it will list contracts on some major exchanges. Taking $GOAT as an example, the several recommended time points in our group also follow this rhythm: October 16th at 270 million USD; October 19th listed on Bitget with a market value of 480 million USD; October 23rd listed on Bybit, market value 748 million USD; October 25th, OKX and Binance announced the listing of contracts, market value reaching 833 million USD. Therefore, anyone who has seen the analysis and bought in the group can catch at least 2-3 times the profit.
4) Buy when the token price pulls back. Of course, this is based on the premise that we have checked using the methods shared above, ensuring that the fundamentals have not changed, trading volume has not declined, and the overall market is stable; then we can hold onto our coins or appropriately increase our holdings.
Lastly, one reminder: doubling the initial investment is a basic principle for meme coins. As long as the principal is there, there is still a chance.
The next article will focus on introducing some tools and websites for meme coin trading.