🤠Strategy

Build your confluences to achieve a higher success rate.

There are multiple measures we need to take before we dive into a token. I like to refer to these as confluences. If more than 2-3 confluences match, then for me, it signals a higher success rate.

Confluence 1: Top 10 %

Before jumping into a token, we scrutinize the total holdings of the top 10% of wallets. Since it's a pump.fun token, early snipers often grab about 20-30% of the supply. Ideally, we aim for the top 10 holders to possess no more than 15% of the total supply. This is why it’s usually wise to hold off on buying in immediately. We open it and watch for sell-offs from the top 10 holders. However, it’s crucial that these sales aren't too rapid, as selling too quickly can disrupt the momentum of the token.

Confluence 2: Current Meta

The trend is your friend, and identifying the current meta can significantly boost your success rate with a token. Volume always follows the trend—for example, the Ansem meta. However, it's crucial to remember that there were many Ansem rugs, which is why we stack up confluences in our favor before actually entering a trade. This approach helps ensure we're making informed decisions and not just following the crowd blindly.

Confluence 3: Social Presence

Tokens that have a social presence before launching are often strong performers, especially if the graphics and content they release beforehand are of high quality. This indicates that the team is serious and more likely committed to their project, reducing the chances of a rug pull.

Confluence 4: Influencers & DAOs

This confluence is controversial and should be approached with experience and caution. If a token is backed by big names, such as an influencer or a major DAO, it typically attracts a lot of volume and leads to volatile price action. However, this is a double-edged sword. While the involvement of these entities can drive significant market interest, their actions, whether buying or selling, can have a huge impact on the price. This factor can dramatically sway the market either way, so it’s crucial to monitor closely and act accordingly.

Confluence 5: Originality

Meme tokens typically center around content—this includes high-quality graphics, engaging animations, and a solid team. If a project, especially a meme token, showcases original content of good quality, the potential for growth can be significant. For example, consider $NUB, which demonstrates how impactful well-crafted content can be in driving the success of a meme token.