Are there more and more mouse warehouses? How to use on-chain tools like GMGN and BullX to discover and track real smart money
In an article a few days ago (on August 25) about the topic of MemeCoin, we also mentioned that it seems to have become increasingly difficult to discover and track the smart money (wallets that entered early and have high PnL) involved in MemeCoin trading. This is because scammers may create dozens or even hundreds of wallets for trading, and to avoid being tracked and to prevent these wallets from being associated with each other, they also use protocols like Elusiv to handle funds. As a result, ordinary users find it challenging to detect the connections between these wallets, as they appear to be genuine buyer/seller wallets for MemeCoin. As shown in the image below.
Although this is a difficult problem to solve, we can also see that some tool platforms seem to be making efforts to mark such wallets with potential indicators. In our previous series of articles on the topic of MemeCoin, we have introduced several practical on-chain tools, such as DexScreener, DEXTools, AVE, Birdeye, Defined, hotcontracts, geckoterminal, etc. Next, let's briefly introduce two currently popular tools:
The first tool is GMGN
Tool address:
https://gmgn.ai/trend/fvHTkhvp?chain=eth
GMGN currently supports four chains: Ethereum, Base, Solana, and Blast, and it also offers a Simplified Chinese interface. On each MemeCoin information page, we can see that they have categorized the trading wallet addresses, including smart money, KOL/VC, whales, sniper bots, large holders, developers, and wash trading, etc. As shown in the image below.
Additionally, this tool can query the latest trading activities of specified wallets, token holdings (including purchase costs), historical win rates, etc., as shown in the image below.
Overall, this tool is quite user-friendly for newcomers and easy to use, and it also provides a detailed Chinese version user guide. As shown in the image below.
The second tool is BullX
Tool address:
https://bullx.io/
Recently, I found that many KOLs are also recommending this tool (besides those paid promotions, perhaps more so because the tool currently comes with airdrop tasks). I tried it out, and it does seem quite useful. However, currently, this tool requires a connection to Telegram before you can access the website and start using it. If you cannot access it, you can try to authorize login through the following address:
https://t.me/BullxBetaBot?start=access_GV1HE5FQ98
BullX currently supports six chains: Ethereum, Base, Solana, Blast, BSC, and Arbitrum. The specific usage is quite similar to the GMGN mentioned above. After entering the MemeCoin detail page, click on the Top Trades section to see the marked wallets, with those marked with a red mouse label indicating wash trading (i.e., insider wallets). As shown in the image below.
Additionally, this tool can also monitor Pumpfun and Moonshot launch platforms in real time, which looks quite intuitive, as shown in the image below.
Overall, this tool appears to be clean and straightforward, though it currently does not support a Chinese interface, but it does provide tutorial videos for beginners. As shown in the image below.
In summary, the core idea of discovering and tracking smart money is to use the on-chain tools we mentioned above to find wallets with high returns (mainly early trading wallets while trying to exclude wash trading). While tools like GMGN and BullX can easily identify those wash trading wallets, other wallets that are not marked do not necessarily mean they are not wash trading or insider wallets, which may require further digging, analysis, and judgment on our part.
It is also important to note that tracking smart money is merely a supplementary reference. Based on this, you still need to conduct necessary research on the MemeCoin you wish to participate in. As the saying goes, "Where there is a high road, there is a high devil," it is difficult to know where a new trap might lie.
Conducting your own research may take considerable time and effort, but it is a necessary path for ordinary people to achieve success. If you are only thinking about directly purchasing some MemeCoins recommended by others (such as various KOLs) or thoughtlessly following high win-rate wallets for copy trading, while fantasizing about turning $1,000 into $1 million in just a few days, then I suggest you turn off your phone and computer and take a walk outside to breathe some fresh air and relax.
Regarding MemeCoins, the vast majority do not have any specific value; their entire significance lies in attracting attention. Therefore, the core idea of finding MemeCoins should also be to attempt to discover and seek that attention in advance, while utilizing various tools is merely a means to better achieve this goal.
Next, let's take the recently popular BULL token on the TON chain as an example for a brief analysis review:
First, we will use the DexScreener tool to look at the price chart of BULL, as shown in the image below. From the candlestick chart, it is evident that this is a typical hundred-fold coin, with a single-day increase exceeding 100 times on August 25, with the price rising from $0.003 to around $0.33. The current price is basically maintained around $0.16.
Next, let's look at the market cap data. The BULL token was officially listed on August 23, with a market cap of around $200,000 in the first two days, then maintaining around $3 million for a while, followed by a surge on August 25. As shown in the image below, the current market cap is $1.6 million.
So, what happened before the BULL token's surge? Let's briefly review:
On August 13, TRON founder Justin Sun announced the launch of the SunPump launch platform (the first Meme fair launch platform in the TRON ecosystem), marking TRON's entry into the Meme space.
On August 16, SUNDOG launched on SunPump, and within less than 3 hours, its market cap surpassed $10 million.
On August 19, with Justin Sun's tireless promotion (social media promotion, X Space promotion, promoting SunPump and TRON in communities, and even Justin Sun personally engaging in memes to drive attention to SunPump), the market cap of SUNDOG, which had been online for only 3 days, first surpassed $100 million.
Just 10 days after SunPump's launch, the number of MemeCoin launches exceeded 26,000, with daily active addresses exceeding 50,000, and the market cap quickly surpassed $200 million.
Then, various KOLs on X continued to promote the SunPump platform and related tokens…
Continuing with BULL as an example, from the data above, we can see that when its market cap was below $200,000 and around $3 million, both were very good "get-rich" buying points. But how many people (wallet addresses) actually got rich because of this?
Let's track the transactions when BULL's market cap was below $200,000:
By querying the historical transaction records of this coin on-chain, we can find that 29 wallets purchased BULL tokens when the market cap was around $200,000 (only counting wallet addresses with transaction amounts exceeding $2,000), as shown in the image below.
However, by using the Tron blockchain explorer tronscan, we can further discover that most of these wallets are new wallets with only 3 historical transaction records, and the only token they hold is BULL. As shown in the image below.
At this point, there is no need for me to say much more. It is clear that these wallets were created specifically to trade BULL in advance (before the surge). As for which of these wallets belong to insiders, due to the anonymity of blockchain, it cannot be traced further. But if I had to guess, I would say there is a 99% chance that these wallets are created by insiders.
So, are there any smart money addresses with reference value?
With a rigorous attitude, we can indeed find that 1% of the early buying wallets are not newly created wallets, as the blockchain explorer tool shows they have more on-chain activity records. If this portion of wallets is not insiders, then they belong to the kind of smart money we hope to find.
For example, the wallet ending with CvtFRL, as shown in the image below, was created on August 17. From the historical transaction records, this wallet has traded not only BULL but also holds (or has held) a dozen other MemeCoins, making it a relatively active wallet.
Let's continue to look at the trading situation of the CvtFRL wallet on BULL:
In terms of buying operations, this wallet made a total of 2 purchases, on August 23 at 2:26 (purchase price of $0.0001945) and on August 25 at 12:07 (purchase price of $0.00507). As shown in the image below.
In terms of selling operations, this wallet made a total of 21 sell transactions, and selling in batches is indeed a very good trading habit. As shown in the image below.
So, how much did this CvtFRL wallet earn from trading BULL?
I checked, and their total investment was $1,787, with cumulative selling profits of $207,600, resulting in a PnL of $205,800. The wallet currently still holds 900,000 BULL (currently valued at $140,000) that has not been sold.
It seems like a professional who specializes in trading MemeCoins!
Besides holding BULL, this wallet currently also holds MemeCoins like IVfun, LEO, JEMAN, etc., as shown in the image below.
Note, do not blindly follow this wallet just because of the above image; perhaps the corresponding tokens have already been sold for profit, and entering now could mean becoming a bag holder. If you are interested in this, you can use some of the on-chain tools we mentioned to dig deeper.
If you enjoy trading MemeCoins, ideally, if you can find dozens of such wallets and add them to your monitoring list, then the movements of this smart money (such as their latest trades) may provide you with some useful alerts.
