Know who’s on the other side of a memecoin
Memecoins get pitched as the fastest way to turn almost nothing into a lot. You’ve seen the thumbnails. Here’s what I’m seeing instead.
When a new coin launches, the person behind it doesn’t always buy from one wallet. They can spread their buying across dozens of wallets that don’t look connected, so it looks like a crowd showed up when one person really holds a big share of the supply. When new buyers come in, those wallets sell into them. People who trade these every day call it a “bundle,” and by their own account it’s behind most of the losses new traders take.
That’s not the only trap:
- Some tokens are built so you can buy but can’t sell.
- Copying a big wallet’s trades can backfire. When they sell, the price can collapse before you even see it.
- Some setups ask you to paste your wallet’s private key into a trading site. Whoever has that key has your money.
- The overnight-fortune stories can’t be checked, and you never hear from the people who lost.
My read: in most new memecoins, the regular buyer is the last one in. That’s an observation, not a forecast.
What we can do
- Only use money you can lose completely. Not rent, not payroll, not the tax money, not the truck payment.
- Call it what it is. This is speculation, closer to gambling than investing. It isn’t a business plan.
- Never share a seed phrase or private key with any site, bot, group chat or “support” person.
- Assume the launcher and the early wallets can sell on you at any second.
- Don’t count results you can’t check. A stranger’s screenshot isn’t proof.
- If you run a business, put your energy where it compounds: your customers, your reviews, your crew.
I’ll keep watching crypto, because I think it matters. Watching is different from betting the shop on it.
Not financial advice. These are my own predictions and experiments, not recommendations to buy or sell anything. Do your own research.