GoPlus data: Only 6.6% of Base chain MEME users make money, and the average profit of the entire chain is negative

Original source: GoPlus

Background

Recently, meme coins on the base chain have been very popular. Usually, we often see myths of getting rich through meme coins. However, on average, how many people have made money? Without statistics, we are easily overwhelmed by the myths of getting rich quickly in social media. Therefore, we need detailed statistics. The meme coins on the Base chain are all ERC20 tokens, and more than 65% of the newly added tokens are risk tokens. So, what are the consequences of trading various types of risk tokens? How is the profit situation? Existing research has not conducted a more in-depth study on the trading returns of risk tokens. So in the same way, we need more accurate statistics to establish a more objective understanding.

Method Description

Data Source

● GoPlus Security API .

GoPlus Security API is an open, permission-free Web3.0 security data API service provided by the GoPlus team for Web3.0 developers and end users. This service not only provides security for professional developers in the technology field, but also focuses on the security needs of C-end users, aiming to build a safer and more trustworthy Web3.0 ecosystem.

● The data on each chain is mainly counted and queried through DUNE .

● The classification standard for risk tokens comes from Token Risk Classification developed by GoPlus.

Analysis Methods

Based on the GoPlus Security API , we classified the newly added ERC20 tokens on the Base chain from this bull market to date (February 27, 2024 to June 7, 2024), mainly into non-risk tokens and various risky tokens.

Based on the dex.trades database interface in DUNE , we analyzed and visualized the data of the above-mentioned tokens and formed an open source dashboard . Specifically, we first retrieve all swap events on each meme coin, and then summarize the dollar value of each trader's purchase and sale. The dollar earned from the sale minus the dollar spent on the purchase can calculate the profit of a trader on a certain meme coin. Then we can make more detailed statistics.

For the specific definition of risk tokens, the proportion of new risk tokens, and the number of addresses involved in risk tokens, please refer to our another research report .

Proportion of profitable addresses

We are usually easily overwhelmed by the myth of getting rich by trading meme coins on social media or the shouting of KOLs. In this regard, we need to calm down and look at the real profit of trading meme coins objectively. As shown in the figure above, on average, only about 6.6% of the addresses trading meme coins are profitable! This statistic tells us that the profit winning rate of trading meme coins is actually relatively low, so what exactly affects the low winning rate? In this article, we mainly explore the impact relationship between security and Alpha by combining security data and real profit data on the chain.

We are usually easily overwhelmed by the myth of getting rich by trading meme coins on social media or the shouting of KOLs. In this regard, we need to calm down and look at the real profit of trading meme coins objectively. As shown in the figure above, on average, only about 6.6% of the addresses that trade meme coins can make a profit! This statistic tells us that the profit winning rate of trading meme coins is actually relatively low, so what affects the low winning rate? In this article, we mainly explore the influence relationship between security and Alpha by combining security data and real profit data on the chain.

The research samples are mainly tokens on the Base chain, which has been popular recently. According to our previous research report, most of the meme coins newly added on the Base chain are risk tokens . However, how big is the harm of risk tokens? What are the consequences of trading various types of risk tokens? How is the profit situation? The statistical results are shown in the figure above.

Overall, the average return on meme coin trading is negative, which means that most retail investors are losing money.

Specifically, Non-risk tokens have the lowest average loss per person, about 15 dollars. The most harmful categories are:

● HiddenOwnership (hidden_owner)

The identity of the owner of this type of token is hidden, and the average loss per person trading this type of token is about 137 dollars.

● BlacklistFunction (is_blacklisted)

This type of token contract can be blacklisted, and specific users may not be able to transfer and trade freely. The average loss per person trading this type of token is about 209 dollars.

● TransferPausable (transfer_pausable)

The transfer of tokens in this type of token can be suspended, and user funds may be maliciously frozen. The average loss per person trading this type of token is about 221 dollars.

● Honeypot (is_honeypot)

This type of token is the notorious **"貔貅盘"**, with a "honeypot" mechanism that users can buy but cannot sell. The average loss per person trading this type of token is about 266 dollars.

Summary

It can be seen that the risk of trading meme coins is extremely high. Only 6.6% of traders can make a profit, and the average income is negative (loss). The risky tokens detected by the GoPlus security API have lost much more money than risk-free tokens. Among them, the average loss of tokens with blacklist risk is 209 US dollars, the average loss of tokens with suspended trading risk is 221 US dollars, and the average loss of Pixiu tokens is 266 US dollars.

So, what enlightenment does this give us?

First, be cautious when trading meme coins. Most retail investors are losing money.

Second, when trading meme coins, you should try to choose tokens without risk items for trading.

Then the question arises again, how can we quickly determine the risk of a meme coin?

Use GoPlus to protect your trading security!

Currently, many market websites and wallets such as DEX SCREENER have access to the security data of the GoPlus team. When we trade ERC20 and its derivative tokens, we can find the GoPlus detection results on the specific market page. The result reports whether the token has a fraud risk and marks its risk category.

In addition, sometimes we are easily impulsive and have no time to check the risk of tokens, and often blindly buy dangerous meme coins. Therefore, GoPlus launched SecNet, a secure RPC based on GoPlus Stack, in May. When we initiate on-chain transactions, this RPC can intercept dangerous token transactions according to our security configuration. Then, even if we authorize transactions on impulse at some point, we can ensure that the funds will not be defrauded by the "Pixiu Disk".

In addition, there are currently a lot of phishing behaviors on the Internet. In addition to intercepting Pixiu transactions, this function can also prevent a large number of phishing transactions from Wallet Drainer to prevent fraud or phishing. So, how to use SecNet specifically?

We can set up and enable relevant protection functions on the SecHub interface of SecWareX , a personal security platform launched by GoPlus.

Specifically, the first step: open SecHub

The second step: turn on protection

The third step: set relevant interception rules

The fourth step: add the secure RPC developed by GoPlus - SecNet to ensure that our on-chain transactions are safe

Finally, we can see that meme coin transactions are extremely risky and most traders are losing money. Therefore, we need to choose our investments carefully and avoid investing in tokens with too high risks. In addition, we recommend that you check the security data provided by the GoPlus team before trading to understand the risks of tokens and avoid blind investment. At the same time, we also recommend that you use security tools such as SecNet to protect your funds. I hope everyone can get the expected benefits in meme coin's pvp!

This article is from a contribution and does not represent the views of BlockBeats.

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