Meme coins have gained an insane amount of attention in the last couple of months, because of their potential to generate out of this world returns. 10x, 100x, even 1000x and 10000x returns are happening almost daily in this sector. In Cypto Cobrex Pro, we already called memecoins which did 10x, 50x and even x100 in these last few months!
However, memecoins are extremely speculative and volatile, there are outstanding amounts of rug pulls & scams in this space!
There are 1000s of new memecoins coming to the market daily and 99% of them are just pure scams! If you are trading memecoins, you already know what we are talking about!
That’s why we created this Memecoin trading guide, to help you develop the required skills, which will help you separate the pure garbage, from the potential blue-chip memes which can pull insane numbers!
Lets get into it!
1. What pops out when scrolling through dexscreener
Do we find the name funny?
Does the ticker looks good as well?
Does it fit on the chain where it is?
One example was “tremp” on Solana which was one of the first memecoins of the kind (some celebrity person with funny picture & wrongly pronounced name) It actually made us laugh, which is a great sign! We found it below $1M Marketcap & still hold the majority of it. This is the coin which actually started the whole ”Boden” movement!
So here’s another thing I look for, would people outside of crypto find this funny/interesting as well.
The meme coin should be “meme-able” – Meaning it needs to be able to grab attention, that will create a strong community around it! Memecoins success is heavily dependent on the Social media buzz! The more likes, retweets, engagement coin receives the more likely it is to attract new people to invest into it!
2. After we find something interesting, we do a safety check
Are LP tokens Burnt?
Liquidity Pool (LP) tokens are used in DeFi platforms to facilitate trading and provide liquidity. For example, the team adds 2ETH + 50000 ”Meme” tokens in the LP – then for example if someone buys 100 Tokens for 0.1 ETH – LP then looks like 2.1 ETH + 49900 ”Meme” – The problem becomes that if LP is not Burned, that the owner can take out this 2.1ETH & make it impossible for anyone holding ”Meme” to sell!
When the team burns its LP tokens, the tokens are removed from circulation, it is impossible for the team to withdraw the liquidity, run away with the funds (Rug pull) and make everyone else hold the worthless token.
By burning LP tokens, the devs ensure that the liquidity remains locked in the DEX, always providing liquidity for investors to exit the token.
Do you see the difference between these two on Dexscreener? The first one has a lock next to the liquidity & by clicking on it you can see what % of the total liquidity is locked and if it is burned! For a smaller memecoins, its safest if you only buy the ones where 100% of the LP is burnt!
Is ownership is renounced?
Ownership is renounced when the developers transfer the ownership of the smart contract to a null address. Meaning they can’t change the contract – inflate token supply or manipulate the code in order to scam.
You can check most of these things on Dexscreener & I would advise you to also copy the Tokens address in the following tools:
For most chains you can use:
- https://tokensniffer.com
- https://ave.ai (got Solana as well)
For Solana:
3. Look at “Holders” distribution
What you don’t want to see if big % of supply being split among top 10 holders. Generally 15%-20% split between top 10 wallets is a bad sign.
I always check bubblemaps.io or bubble map on tokensniffer.com as well to see if there’s many wallets connected, actually being one entity.
If I find something I believe really has potential and I’m ready to enter with bigger size than just random gamble, I also go through top 30-50 wallets on etherscan/solscan/basescan… and manually check what they are doing with the holdings. Are they still holding all tokens, are they selling, are they trading,…. I’m looking for signs of top holders being diamond hand holders.
4. Look into its social media.
Are they posting often on their twitter?
Is the telegram group active?
You want to see the team being active on twitter, posting funny/educational/interesting tweets all day long, commenting under other tweets,…. Being really active.
5. Look for entry based on the chart.
This depends on how old the token is but generally I always try to find levels on Daily chart. If token is really new you simply move to lower and lower times frames until you can see some suitable support and resistance levels (Candles bounced multiple times from the same level / candles got rejected multiple times from the same level)
Try to find these levels on as high time frame as possible.
If you see on the chart there’s some kind of range already formed, in many occasions I look to DCA into position by adding on the support levels.
6. Follow Cobrex Pro Discord channel 🤑
If you want to avoid all of this hassle, of trying to find the one coin that could run, in the sea of 1000 memecoins that launch daily, make sure to Follow #Shitcoins channel in our Pro Discord! We have a team member (Best memecoin trader I know) dedicated only to finding the best potential memecoins on the market! Since the start of this channel about a year ago, we already called tons of coins which did x10, x50, even x100 and more!
Join now HERE
