What is Pump.Fun
Pump.Fun , the Meme issuance platform based on the Solana public chain , aims to simplify the token issuance process, lower the technical threshold, and allow users to deploy and create tokens in a simple and low-cost way. No development experience is required, and users do not need to pay fees to easily use the platform to complete token issuance. However, if you successfully migrate to Raydium, you will be charged 6 SOL.
There are many tutorials on the overall currency issuance process on the Internet. Here I only mention things related to transactions:
Market value compliance mechanism : On the Pump.Fun platform, when the market value of a certain token reaches 100k, the internal trading of the token (i.e. internal trading on the platform) is considered "full". At this time, the platform will automatically inject the liquidity of the token into the decentralized exchange Raydium and destroy the corresponding liquidity tokens to ensure security and liquidity.
- This mechanism ensures that after a token reaches a certain market value, it can be traded in a larger market, improving its liquidity and market depth.
Three token states
1. The internal market is about to be full : This means that in the internal market ( in Pump.Fun ), the trading volume of a certain asset is close to its set upper limit of 100K. When the internal market is about to fill up, it usually means that demand for the asset is very high and trading activity is very active.
2. Migrating : This means that an asset is fully allocated on the Pump.Fun platform and is ready to be migrated to Raydium to establish a liquidity pool after being locked.
3. External market opening : This means that the token can already be traded on Raydium.
Sniper trading function
The sniping functionality of many trading software deploys orders early during the migration phase. For example, "10 SOL sniper opening" means buying 10 SOL of the token as soon as the market opens.
Token related indicators explained
- Mint Discard : Shows whether it is safe. “Yes” means secure, meaning token creators cannot issue additional tokens to manipulate the market.
- Top 10 hold 30% : “Yes” means safe, meaning the top 10 token holders collectively hold less than 30% of the total supply.
- Blacklist : "No" means safe, which means the project cannot blacklist transactions from any wallet, thereby reducing the risk of fund traps. "Yes" means that your wallet is on the blacklist of the developer of this coin and you cannot sell the coin.
- Burned/Burned Pool : Displays the percentage of the destroyed pool, the higher the ratio, the better. 100% means that the project party cannot withdraw from the liquidity pool.
- Rug probability : Shows the probability of the token being Rug Pulled. The more holders who regularly purchase Rug Pull tokens, the higher the probability that the token will become a Rug Pull.
- Rug History : Displays the Rug Pull project parties that may have been launched by the token creator before.
Basic process and currency selection direction
After understanding the basic process of the platform, the next focus is to choose the tokens you want to buy. There are many currencies issued on the Pump.Fun platform every day . How to select projects worth investing in? At this time, you need to use the concept of "investing more people than the project". Find suitable investment targets by collecting and analyzing the transaction behavior of smart money addresses.
Where to find smart money? At present, all major trading software basically provide relevant data, but screening is the key point. In addition, you can also join discussion groups (such as ANFGRYX Chinese group ). The editor will share the contract address (CA, Contract Address) every day to facilitate quick order placement.
The following are several smart money models that I personally think:
smart money model
- Quick shooters use high-speed trading software, holding positions for 15 seconds to 3 minutes, fast in and out, and scalp trading. This kind of order is very difficult to follow. Basically, once you buy it, he will sell it long ago.
- Research masters buy narratives heavily. This kind of thing that can be won is betting that narratives will be discovered by value, such as SWARMS and BUZZ.
- Short-term narrative There was no major market trend that day, and a category of narrative suddenly appeared. The narrative usually ends at the end of the day. Generally, smart money will not invest in large positions. It is good to make profits. This can be observed by the investment ratio of ordinary smart money. For example: test order 10SOL, optimistic about 50SOL, think it is a golden dog 200SOL, and so on. And so on. This type of market includes LLM, BLM (fat woman, black woman), as well as Little Red Book Rebellion MOMO, Captain Potato, etc.
This can be divided into two categories:
- High winning rate and low profit-loss ratio
- Low winning rate and high profit-loss ratio
Therefore, studying the buying logic of smart wallets is the key point.
Sharing personal buying methods
- There are some smart money who follow the early discoverers and buy the project before it explodes. When it gets fermented on Twitter, everyone who comes after will help him carry the sedan chair. This classification method is to find some coins that mainly tell the story of making money. Suppose you find 10 hot spots in the market, screen out overlapping wallets, and then look at their buying time. It will be interesting to find that some people are earlier than others. , and each narrative precedes the others. This kind of buying method is to follow the medium position and wait for subsequent fermentation to increase the position.
- Follow the research guru
- The tokens of the masters of research are usually held for a long time, which is a faith-based investment. They rely on their own logical judgment and decision-making. Basically, they just leave it and return to zero or make a fortune.
- What the great god buys is faith and his own logical judgment.
- For example, the regular AI Agent team DEV, although this type is relatively unlikely to return to zero, it is difficult to guarantee that it will spray. If there is a big narrative in the market at the same time, it may be buried.
- After studying abnormal behavior for a while, you will find that some smart money will have abnormal behavior. For example, if the breakthrough fails, he will sell, but this time he insists on holding; or he usually gets off after doubling, but this time he adds crazy warehouse. At this time, you should be vigilant and follow the big V. Even if you lose, the big V will compensate you (comfort yourself).
- Wait for the editor's analysis...just wait for the editor's GEM CALL in the group. The actual test is that AGiXT, LLM, SWARMS, AIOS, BUZZ, and Trump can all make money.
These are the current modes. In fact, if we continue to observe, there will be more and more detailed discoveries, but it is difficult to state them one by one. We also invite everyone to discuss in the group!
