Have you ever encountered a meme that goes to zero after chasing the rise, but takes off after cutting losses? How do traders actually operate? Is there insider information on the addresses holding the top 100? How can one operate to avoid being cut by traders? This article will deeply analyze trader addresses and trading data through several types of coins.

What is the main purpose of trading?

Before analyzing trading methods, we need to clarify the main purposes of pumping and dumping. The purpose of a trader's pump is to prevent low-priced chips from falling into others' hands, selling at a higher price to gain higher profits. The purposes of dumping vary: one is to wash out other low-priced chips and gather them for themselves, quickly cashing out high-priced chips; the other is simply 'I’m outta here!' taking the money and running.

Since this is the purpose, the rise must be rapid. How can a rapid pump be achieved? Only large buy orders can achieve rapid rises. Therefore, during a pump, there will definitely be one or more addresses making large purchases. If you see two addresses both making purchases of at least over a thousand dollars continuously, that is called a pump. So when looking for trader addresses, you can filter for buy order records greater than $1,000 and identify which address is the trader's pump address.

Similarly, how can traders collect the initial bottom chips? It must be through rapid sniping at the very beginning, at the lowest point, pulling away most of the chips. Thus, looking at the earliest trading records, one can see all the actions of the trader collecting bottom chips.

Several types of memes

Once we know the main purposes of meme pumping and dumping, we can use the trader's mindset to differentiate between different memes.

A single wave

It can be said that 90% of the memes in the market belong to this category. The current market is different from a year ago; due to the introduction of Pump, creating tokens does not require high time or monetary costs, just filling in the token name, official website, Twitter, and paying 0.02 sol. Therefore, most token creators are just trying to ride the wave and feel the market. In Pump, more than ten thousand tokens can be issued in a day, and it is impossible for the capital to support each token rising multiple times. Hence, most memes will follow a single wave.

Take the token 'Birds' below, which within 25 minutes went from a market value of 2.2 million to crashing down to 100,000, and since then, the token has shown no further fluctuations.

DEV runs away, the trader enters

Meme is an emotional market, and a good narrative is one of the essential conditions for a hundredfold coin. When a wave of DEV cashing out occurs, some traders will secretly lie in wait, absorbing these tokens with low chips, and then release some positive news to revitalize the tokens.

For example, this token, DEV left at the peak, and the token crashed from a market value of 2.4 million to a minimum of 260,000. During this period, the trader continuously accumulated chips, established the CTO community, and continued to launch activities on Twitter, ultimately reviving the token.

Of course, do not forget that traders are active in a token to earn money, so there will always be a risk of dumping. Just like the BOGGS in the image below, DEV ran away on the first day, and after a few days, the trader took over and began to build the CTO community, raising it to a 4 million market value in a week, but then suddenly dumped and ran away a week later.

DEV is the trader

Most of these coins are issued by large institutions or influencers, creating tokens for their own use, just like the previously trending Desci track PRO and ANTI. DEV does not sell, relying on doing things, narratives, and funds to pump.

Trader's operating methods

After having a basic concept of meme types, we can look at the trader's operating methods.

Single wave trading methods

First, let's look at the single wave trading method using BOGGS as an example. In BOGGS, we can see that the trader snipes the buy of this token when opening. After a period of time post-issuance, two addresses simultaneously bought this coin, with both purchases valued at $367.24.

Following these addresses, we will find that the sniper buy is a DEV address. After checking the DEV address, we find that it has only one buy and one sell.

However, when we shift our focus to the two addresses below, we will find that these are the trader's actual addresses, buying at the first opportunity after the opening and continuously buying and selling, accumulating at lows and selling at highs, ultimately profiting $3000.

At this point, we will find that the DEV seemingly only made $200, but in reality made $3000.

At this point, if we analyze using our meme-catcher tool, we will find that all three addresses have strong correlations.

DEV trading methods and secondary rises

For the secondary rise, we take qAI as an example. On the surface, DEV did not move at all, but in reality, operations were fully underway. When we check the top traders for profits, we can easily find that the trader's alternate account was constantly selling from the first pump to the second.

Moreover, when the first dump reached the bottom, another address appeared, continuously buying during the bottoming process and started selling as it reached a market value of 2 million.

We can see that the trader was continuously building a bottom before January 3rd, and on January 4th, qAI released a video outlining its vision, which caused qAI to stop falling and begin a slow rise. On January 6th, the pump occurred.

During the pump, the trader of qAI was also continuously selling, ultimately stabilizing from a peak market value of 2.3 million to around 1 million.

It can be seen that the trader's operation is not just about buying low and selling high, but also involves manipulating information. They release positive news to attract funds.

Using the meme-catcher analysis tool, we find that the associated addresses are three and two respectively, with the top 100 accounting for 91.38%. It shows how terrifying the trader's accumulation is.

Finally

In the meme market, one must remember that memes are always emotional markets. When emotions explode, it is very easy to chase the rise, and in panic, it is easy to cut losses. Traders are counterintuitive, continuously selling at high points and accumulating at low points. When the chips are sufficiently abundant, traders will release positive news and attract funds to enter the market with new addresses, ultimately repeating the process of selling high and buying low, achieving considerable profits.