Pump PVP Manual: The Fierce Battle Between Scythe and Leek
To thrive in the market, one must continuously evolve when investing in meme coins.
Author: Nan Zhi, Odaily Planet Daily
Before Pump.fun became popular, for safety reasons, Solana Meme investors were mostly "10u warriors" to guard against DEV removing liquidity and other Rug operations. However, in March, influenced by BOME and SLERF, large pool Meme tokens began to trend on Solana, but due to the overall market downturn and increasing exit scams, it once again entered a cold period.
Subsequently, Pump took over—its convenient launch methods and secure token backing made Meme tokens popular on Solana once again. Due to attack incidents, Pump.fun launched a 7-day zero-fee event, and the number of new tokens on Solana continuously hit historical highs, with daily new tokens exceeding 20,000.
However, the emergence of Pump has changed the characteristics and gameplay of Meme tokens, and malicious DEV's harvesting methods have also evolved. Odaily Planet Daily will analyze market characteristics and some techniques in this article.
Token Market Characteristics
Tokens born in Pump have some notable characteristics, which we summarize as follows.
Riding the Trend
Pump.fun's extremely convenient token issuance method has rapidly increased the number of DEVs specializing in trend-riding projects. Just like how anything Musk posted on Twitter would be dissected into countless Ethereum shitcoins, Pump mostly targets some Solana ecosystem influencers, including Ansem, Yelo, etc. Following these influencers can help obtain early tokens quickly. However, it is common to see five or six tokens with the same keyword appear within one or two minutes. In such cases, the first token is not the main advantage; more emphasis should be placed on token distribution and buying speed.
Internal Market Death
Pump.fun is divided into internal and external markets. The internal market requires the purchase of 85 SOL to end, after which LP will be added and burned. However, due to the significant cost difference between early and late participants in the internal market, often at least five or six times, many DEVs tend to cash out when the internal market reaches 80%-90%. How to cope? The simplest way is to keep an eye on the pump interface token list and exit as soon as the DEV leaves. Additionally, users can try PlonkBot, which has the function of racing against DEV to exit, but the success rate is limited.
Market Cap Has a Clear Ceiling
The vast number of tokens disperses funds and makes the creation of Meme consensus fragmented. Even if they survive the internal market, only a very few tokens can break through a market cap of 300,000. According to some users who participate heavily in Pump projects, there are clear step-like limits to the achievable market cap. Once a limit is broken, it is easy to rise to the next limit, and users can summarize and conclude on their own.
Game Theory
Website and Community
Generally speaking, having a well-made website can greatly promote the early rise of Pump tokens, and whether there is a community at this time is not critical. However, community and cultural consensus are key to breaking through conventional limits. For example, recent tokens like DJCAT and NAMI, the former rose through Community Take Over, and the latter through continuous thematic image creation by the project team to build consensus.
However, it should be noted that some DEVs promote by buying high-follower X accounts or mass-producing websites, then dumping at the internal market peak. As a reference, users can use the "Shitcoin Website Duplicate Check" TG tool to detect websites. This tool can check how many websites are deployed on the same IP, but if the website developer uses some third-party services (such as CDN), it may show that hundreds of websites are made on the same IP, requiring users to discern on their own.
GMGN Indicator
Currently, there are many tools aimed at Pump on the market, and GMGN is one of the more comprehensive data websites. This site provides multi-dimensional data such as progress, genesis time, fund inflow speed, trading volume, and number of comments, allowing for comprehensive investment evaluation.
However, DEVs are also evolving. There are now many DEVs developing bots to fake trading volume indicators, as well as DEVs using multiple wallets to buy and fake Pump interface comment numbers, creating a false sense of prosperity, and then dumping at the internal market peak.
Be Cautious with Copy Trading
Copy trading smart wallets is a common practice for discovering early projects, but it is not suitable in the current Pump trend. Currently, almost all token LP pools are very small, and buying after a smart wallet purchase can even push the price up several times. Both domestic and foreign influencers have been exposed for using the copy trading mechanism to harvest followers. To address this issue, it is more appropriate to follow addresses with low win rates and high risk-reward ratios rather than high win rates and low risk-reward ratios.
Conclusion
The methods of malicious harvesters are constantly evolving. This article can serve as a partial reference for countering them, but when everyone uses the same or similar strategies, those strategies will fail. Only by continuously evolving can one survive in the market.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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