Coin Fundamentals
Before you buy anything, understand what you're looking at.
Memecoins might seem like pure chaos, but there are fundamentals that matter. Knowing how to read them helps you filter out the garbage and focus on coins with actual potential.
Types of coins
Not all memecoins are the same. Knowing what category you're trading helps you understand its potential and limitations.
Fully unique concepts with new artwork, branding, and narrative.
These are rare. When they hit, the upside is massive because there's nothing to compare it to. But most original ideas fail before anyone notices them.
High risk, highest reward.
Copies or spin-offs of a coin that just went viral. Usually share a theme or ticker with slight variations.
The logic: if the original is running, attention spills over to related plays. You're trading the momentum of something else.
Lower upside than originals, but easier to spot and faster to play.
Linked to a platform or product. The coin is used for payments, launchpad access, or platform features.
These trade differently. They're less about memes and more about whether the product actually gets used. Can be steadier but also slower.
Created around a currently trending meme.
These thrive while the meme is hot and die when attention moves on. Speed matters. If you're not early, you're exit liquidity.
Supply and distribution
Before you buy, check how the supply is distributed.
Red flags:
Top 10 wallets holding 30%+ (excluding bonding curve / LP)
Bundled wallets (multiple wallets that bought at the same time, same size)
Dev wallet still holding a large %
Green flags:
Wide distribution across many holders
Top wallets are known traders with good track records
Dev sold early or holds a small amount
You can check this on Terminal or through holder tracking tools. More on finding and analyzing wallets in Wallet Hunting and Tracking.
Healthy holder distribution
Concerning holder distribution
Dev and early holders
Who made it and who got in early matters.
Things to check:
Has the dev launched successful coins before?
Do early holders have a history of diamond handing or dumping?
Are there known snipers in the top wallets?
If the top wallets have a habit of dumping at the first pump, that's your warning. If the dev has a history of rugs, stay away.
On the flip side, experienced devs or smart holders with good track records can signal opportunity.
Coin leaders
Many memecoins are carried by whoever's running the community.
Look for:
Who's managing the Telegram or Discord
Who's consistently posting on X
Who the community looks to for updates and direction
You don't need a perfect leader. You just need someone who isn't known for farming communities and dumping on them.
If the same person has led multiple coins to 7-8 figure market caps, pay attention. But remember: past success doesn't guarantee future results.
KOL influence
Key opinion leaders can make or break a run.
Watch out for:
Shady KOLs who post right before selling
Paid promos disguised as organic calls
Known farmers who rotate through coins daily
Good signs:
Respected names with skin in the game
Organic posting, not forced shilling
KOLs who've held through dips before, not just pumped and dumped
If you spot a known farmer tweeting a coin, either get in and out fast or skip it entirely. Their followers are the exit liquidity.
Going deeper
Pros don't just analyze coins. They analyze people, reputation, and past behavior. This edge is explained in: Cultural Awareness as an Edge