Author: Nan Zhi, Odaily Star Daily

Before the popularity of Pump.fun, for security reasons, Solana Meme investors were mostly "10u warriors" to guard against Rug operations such as the removal of liquidity by DEVs. In March, influenced by BOME and SLERF, large pool Meme tokens began to gain popularity on Solana. However, due to factors such as overall market downturn and increasing rug pull incidents, it gradually reached a freezing point again.

After that, Pump started to take over - easy opening means, secure token endorsement, making Meme tokens on Solana popular once again. In response to the attack, Pump.fun launched a 7-day zero fee activity, and the number of new tokens on Solana has reached a record high, with over 20,000 new tokens added daily.

But the emergence of Pump has changed the characteristics and gameplay of Meme again, and the malicious DEV's harvesting methods are also constantly evolving. Odaily will analyze the market characteristics and some methods in this article.

Token Market Features

Tokens born from Pump have some notable features, which we summarize below.

Riding the popularity wave

Pump.fun is a very convenient way to issue coins, which quickly increases the number of DEVs dedicated to projects that ride the hype. Just like any content Musk used to tweet would be broken down into numerous Ether dogs, Pump mostly targets some Solana ecosystem big V entrepreneurs, including Ansem, Yelo, etc. Following such big Vs, you may have the opportunity to get early chips at the first time. However, it often happens that the same keyword appears in five or six tokens within a minute or two. In this case, the first token is not the main advantage, and more consideration should be given to chip distribution and buying speed.

Inner Market is Dying

Pump.fun is divided into the internal market and the external market. To end the internal market, you need to purchase 85 SOL, and after the end, LP will be added and destroyed. However, due to the significant difference in chip cost between early participants and latecomers in the internal market, usually there is at least a five to six times difference. Therefore, many DEV often take profits directly when the internal market reaches 80%-90%. How to deal with it? The most straightforward way is to directly monitor the chip list on the pump interface and exit at the first moment when DEV leaves. In addition, users can try PlonkBot, which has the function of racing against DEV to exit, but the success rate is limited.

Market Cap has an obvious upper limit

A large number of tokens have scattered the funds and made the creation of Meme consensus fragmented. Even if it successfully emerges in the internal market, only a few tokens can exceed a market capitalization of 300,000. According to some users who have participated in Pump projects, there are clear stepped boundaries for achievable market capitalization. It is easy to pump up to the next boundary after breaking through one boundary. Users can summarize and generalize it themselves.

Game theory

Website and Community

As a professional translator, I will provide you with the translated text.

But it should be noted that some DEVs promote by buying high-follower X accounts or mass-producing websites for promotion, and then dump at the high point in the internal market. For reference, the TG tool of "Meme Tokens Website Plagiarism Check" can be used to detect the website. This tool can query how many websites are deployed on the same IP. However, if the website developer uses some third-party services (such as CDN), there may be hundreds of websites made on the same IP, and users need to judge by themselves.

GMGN Index

There are many tools on the market currently targeting Pump, and GMGN is one of the websites with more comprehensive data. The website provides multi-dimensional data such as progress, creation time, fund inflow speed, transaction volume, and number of comments, which can be used for comprehensive investment evaluation.

But similarly, DEV is also evolving, and there are currently many cases where DEV developers have developed robots to artificially increase trading volume indicators. There are also cases where DEV developers purchase multiple wallets and artificially increase the number of comments on the Pump interface, creating a false prosperity and then selling at the peak of the internal market.

Cautionary Copy-trading

Copy Trading is a common operation for discovering early projects in the Conflux Wallet. However, it is not suitable in the current trend of Pump because the LP pools of almost all tokens are very small. After purchasing in the Conflux Wallet, the price can even be multiplied several times. Both domestic and foreign influencers have been exposed for harvesting followers using the Copy Trading mechanism. To address this issue, it is more appropriate to follow addresses with low win rate and high risk-reward ratio, rather than accounts with high win rate and low risk-reward ratio.

Conclusion

Malicious harvesters are constantly innovating their methods. This article can serve as a partial reference for combating them, but when everyone uses the same or similar strategies, the strategies become ineffective. Only through continuous evolution can one survive in the market.