On-chain tracking of the trading logic of 5 MEME coin smart money addresses, how to achieve hundredfold returns without rushing to open positions or relying on luck
For these smart money addresses, in addition to learning and imitating through following their trades, we should perhaps explore the scientific methods of MEME coin trading through analyzing their trading logic and behavior.Author: Frank, PANews
MEME coins are a dark forest, where competition is extremely fierce. Countless speculative players are competing within it, but it seems difficult for anyone to become a consistent winner. In this context, examples of those who became famous in one battle are more instructive. For these smart money addresses, besides learning and imitating through following their trades, we should perhaps delve into their trading logic and behavioral analysis to explore the scientific methods of MEME coin trading. PANews has compiled five typical smart money addresses from recent times, attempting to uncover the secrets behind their successful trades.
Case 1: Turning a Garbage Coin into a Golden Dog
Smart money AcLHpBGUgsRApF2eF3tPPxMsgsnyBAr53mdBvLM8ST8z
On May 16 at 10:42:30, the 1DOL token was created on pump.fun, with only the founder initially buying 5 SOL. This token had only 10 comments on PUMP, and there was almost no trading in the three days following its creation. The Twitter account showed that the account was banned. This was originally another case of failed issuance. Starting from May 19 at 4:28:18, the founder gradually sold 1.5 SOL.
At 5:39:58 on May 19, the address 4gQYeDooUUHXG6wXDaUR3sL68ZHr2niim2aiZiQNgvGv began buying 1DOL for 13 SOL. After the purchase at 4gQYe, it quickly sparked a buying frenzy in the market. The project's funding volume met the price curve progress on PUMP within one hour and was listed on Raydium.
Subsequently, the market cap of 1DOL once surged to $20 million, and the holdings of the 4gQYe address approached $2.26 million, yielding a return of 993 times. According to PANews analysis, this address belongs to a Twitter user named Sunday Funday, a seasoned MEME coin player who spent 421 on fundraising for BOME and thus gained approximately $18 million in profit.
PANews analysis indicates that Sunday Funday mainly seeks out crypto artists. He stated on Twitter that the success of BOME was due to his understanding of artists, which led him to place heavy bets and make big profits. Of course, after the success of BOME, Sunday Funday became a target for many players to follow. Therefore, every time he buys, it attracts many followers. Whether or not 1DOL was intentionally pushed to the altar or was a mere coincidence, the outcome has forged a new wealth code. However, given that the current size of the funding pool is only $230,000, Sunday Funday's millions in profits are merely paper wealth, difficult to realize.
On social media, many players questioned whether Sunday Funday was an insider trader, attracting other addresses to buy in order to gain high returns. In response to these doubts, Sunday Funday stated, "Did I buy because I believe in the artist? 100%. Did others buy because I bought? Maybe." As of May 21, Sunday Funday had not sold any tokens.
Case 2: Short-term Hunters and Long-term Stalkers on GME
3zdzNQPcJ4NdEsK2EEHbRMvupVqJPmk94YQyJpMSjPf1 is a short-term hunter who achieved $200,000 in profits through GME.
Initial purchase: From 2024-05-13 00:05:41 to 2024-05-13 03:13:54, spent about $16,000 to buy 18,640,537 GME.
After holding for about 9 hours, he began to sell, at which point the GME price had risen more than double its cost price. The initial sale was about $61,000, recovering costs and achieving a 4-fold profit.
During his buying process, the GME hype was just beginning to brew, and during the initial purchase period, GME rose by more than 30%. However, this player remained steadfast in buying and completed most of the position building (about 87% of the initial total position) within 5 minutes.
2nU4GehM5FLtdZcx8BiAHgMFW6ziDJbtFmXsKiwkzUdP is a long-term player who built a position in GME two months in advance. This player started building a position in GME on March 5 and continued until May 1, accumulating 69,400,000 GME with a total investment of $19,000. Until May 13, when Roaring Kitty returned to start selling, he made a profit of $468,000.
Both players achieved high returns through the GME token, but their operational styles are clearly different. From the results, it seems that the long-term player has the upper hand. However, the short-term hunter 3zdzN also has similar long-term layout tokens, but their price trends have been declining. Clearly, short-term operations may be more suitable for the player at address 3zdzN.
Case 3: Lottery-style Player Hits a $100,000 Jackpot
7BBgSsxsjtS8NSZqKZp7qmsoDenupqBaCNZPj8Tvh7g8 (alienbot.sol)
The user of this address resembles a lottery player, preferring to invest 0.2 to 0.3 SOL in newly launched tokens. Of course, most tokens end up going to zero. This player completed 450 such transactions from May 6 to May 8, spending a total of 57.3 SOL (about $8,700), with 99% of the projects yielding no returns. Only one PumpnDump successfully formed, earning $106,000. Although media reports mention that this user won $100,000 with 0.3 SOL, the cost behind that $100,000 is not low (alienbot.sol has other associated addresses with the same investment strategy, and the total cost far exceeds 57.3 SOL).
Many players on social media questioned whether this address is an insider trading address, but PANews analysis suggests that the player's success may purely be the result of winning the lottery. However, this strategy is not suitable as an investment plan, as there are over 16,000 tokens issued daily on the Solana chain, and such trading methods may ultimately lead to losses.
Case 4: Suspected Wash Trading with Potential Earnings of Nearly Ten Million
5YYaPTFHuW3cgFvgd6oHZy1HgPWGKa59NJKhHVKoMCAX is suspected of being a wash trading address for MANEKI, having invested over $100,000 just one minute after MANEKI opened.
MANEKI opening time: 04-22-2024 14:55, purchase time: 04-22-2024 14:56:48, purchased 718 SOL, accounting for 11% of the total supply of the token. Subsequently, this address distributed these tokens to 15 addresses. The current value of the tokens is approximately $9.55 million, while the total funds in the liquidity pool amount to only $15.5 million. After the tokens held by this user were exposed by @ai_9684xtpa, they have not yet been sold. Wash trading is indeed an important avenue for many smart money players, but in today's environment where on-chain tracking tools are highly developed, the actions of wash traders seem increasingly difficult to hide.
Summary:
1. Seizing the opening is not the choice of smart money.
In the analysis of several smart money addresses, only one lottery-style player and one wash trading address adopted the strategy of seizing the opening. Instead, their choices placed more emphasis on the project initiators or the narratives behind the projects.
2. There are no consistent winners; following blindly is unwise.
Through the analysis of smart money addresses, it was found that almost every smart money player completely changed their capital scale after seizing 1 to 2 opportunities, and in terms of success rate, most of the tokens they bought ended up going to zero. Therefore, blindly following smart money is also unreliable.
3. They are lucky, but also promoters.
From PANews' observation of the trading scale and timing of these smart money addresses, these addresses almost do not have true small retail investors. Instead, they possess a certain level of investment strength and generally invest tens of thousands of dollars. Moreover, these smart money players are often the main promoters of the price increases of these MEME coins. For instance, Sunday Funday's purchases directly attracted numerous followers to 1DOL, suggesting that their profits may not be mere luck, but rather the contribution of their fans.
4. Do the 10U warriors still have a chance?
During the analysis of addresses, PANews found that there are many addresses with similar or even lower costs before and after these smart money purchases. However, these addresses often clear their positions in a short time, ultimately missing out on significant profits. Thus, it is not that smart money is always lucky; rather, they have specific holding strategies, such as recovering part of their costs after price increases. Even in cases where they are optimistic about a project's trend, they continue to increase their positions, which differs from the quick in-and-out habits of ordinary players. For most of the 10U warriors, opportunities seem to always exist, but whether they can truly hold on is the main reason hindering them from becoming smart money.
