Using this new deceptive tactic, anyone can fool experienced traders and print 5-6 figures daily.
#Memecoins have exploded in popularity over the past few years, becoming a key part of the crypto space.
With meme coins, it's entirely possible to become a millionaire overnight and that's exactly why many people are currently choosing them over fundamental tokens.
However, popularity always attracts scammers and malicious actors.
Memecoins have always been a high-risk, high-reward sector, and with the increasing number of scams lately, it's now true more than ever.
Scammers invent new hidden methods every day and even experienced degens often fall victim.
Here's how you can stay away from their traps and increase your chances of finding a future 1000x gem
Find new meme coins.
➢ Most of memecoin traders use dexscreener or DEXToolsApp to search new tokens;
➢ Tokens with the highest trading volume naturally attract more attention, even in case other metrics don't stand out.Check the metrics.
➢ Every degen usually checks 3 main metrics: volume, market cap and holders;
➢ Market cap is often ignored as most people aren't afraid to buy unknown coins with low MC hoping to catch the next 100x;
➢ Eventually, they find a decent-looking coin with a good volume and a reasonable number of holders. Seems like a great deal, right?In reality, 9 out of 10 such tokens are scams and all those numbers are fake.
➢ This is called wash trading and it's done specifically to attract real traders and inflate the value of the coin;
➢ Wash Trading is a type of market manipulation where malicious actors try to drive a token's value by artificially pumping its trading volume;
➢ These malicious actors are either devs themselves or a fraudulent market maker entity.
The most common method is to use a special automation software.
➢ With such software, you can buy the same token simultaneously from thousands of wallets;
➢ They also "bundle" transactions to buy in the same block when the token launches;
➢ This allows you to automatically "snipe" the launch and then sell for a huge profit later.
It's a very simple yet very effective method.
➢ Anyone can snipe their own token to increase the number of holders, do some wash trading to attract real buyers, and then sell for a huge profit.
➢ There are even some ready-to-use platforms offering bundling and wash trading services - and it's not really expensive;
➢ For example, you can buy fake volume from ~1500 wallets just for 9 $SOL ($1200).
It's not possible to expose these scams via Bubblemaps.
➢ Since the wallets are not linked between each other, there's no way to know what you're dealing with;
➢ Moreover, all these wallets may look like real holders.How can one detect these scams?
There are several red flags you can notice right away
➢ Little to no activity on the social media channels or the comments look botted;
➢ The majority of buyers have no prior transactions on the blockchain;
➢ A lot of mirror trades with almost identical amounts placed one after the other (i.e. bundled transactions);
➢ The majority of buyers' wallets are funded from an unknown CEX or mixers the same day the coin is deployed and their first tx was with that exact coin.
Always remember that the memecoins are very easy to manipulate, especially during the early stages.
It's crucial to recognize these manipulations and know when to take profits.
Don't get trapped in the scams and always DYOR before buying any token, especially meme coins.