In the ruthless shitcoin trenches, it is said that 1000x awaits those skilled and patient enough to find and hold them.

Since memecoins are the purest form of attention trading, you first need to understand whom you're targeting as your exit liquidity/target audience, then you can formulate a plan for your exit.

Exit liquidity comes in three categories:

1. The Mass Market

2. The Cabal

3. Nobody

Good memes attract the attention of the mass market. To understand the criteria for a 'good' meme, check out our previous guide here. In short, a good meme is:

• Visually appealing, mostly funny or cute

• Widely adopted on your everyday conversation on the internet

• Extra points for a memorable tagline

  • The hat stays on

  • Mogged 🫵😹

  • Lock in

As the current market ascribe value to a token based on how much attention the meme has attracted, the more likely it is for a meme to get adopted into mainstream conversations, the higher its valuation.

Exit Plan

Timing the exit for good memes follow the same logic as its discovery process. The closer a meme is to achieving max popularity, the lower its growth potential is. At this point, you should start looking for exits. This can be looking out for bigger influencers sharing about it (Arthur Hayes is famous for marking the top of coins he shills), or early buyers cashing out and writing appreciation-posts (A 19y/o famously posted about the 2 toyotas he bought with his memecoin profits near the local top of Solana in May).

The Cabal's power lies in their capital. They can corner the supply of a token and manipulate the chart to their advantage. Despite the memes being subpar, as long as they can control the price, they can control the narrative. The most notable example is Matt Furie's coins:

• Pepe (ETH)

• Brett (Base)

• Andy (Blast)

Pepe being the most popular meme of the last two decades justifies its dominant position in the new cohort of memes and its multi-billion dollar market cap. On the other hand, is Brett popular enough to justify its 2 billion dollar market cap? Not unless someone is controlling the price.

Exit Plan

As you never know when the cabal is going to sell their sniped supply, I would suggest selling along the way when these coins reach meaningful marketcap milestones. The most common ones people use are

• 20M

• 50M

• 100M

• 300M

• 500M

• 1B

Or when the price reaches round numbers, such as

• 0.1

• 0.5

• 1

• 10

But you can make your own decisions, just remember to keep cashing out.

Nobody:

This is when you buy a terrible meme and find no buyers afterward. This category encompasses 99.9% of memes, including:

• Your WIF & Doge forks

• Random cat images from the internet

• All 'fxxk xyz' coins

• Celebrities 'onboarded' to crypto

Now that we understand how to differentiate between different exit liquidity, how do we spot coins with the best potential and be early?

If you had asked me this question in January, I would have told you to monitor token deployment channels and watch the token description as well as the supply distribution to front-run others. However, with more than forty thousand tokens being created every day, this old-school method has become unsustainable. At this point in the cycle, I suggest setting up effective filters on Dexscreener (or DefinedFi) to screen new launches.

Here are two filters that I like to use:

The New Launch Build:

This build is for those who don't want to stare at Dexscreener 24/7 but still want to catch launches relatively early.

• Timeframe: <48 hours

48 hours is ample time for a new idea to attract attention. If there’s still no traction by then, chances are there never will be.

• Liquidity: >10k

Setting a minimum liquidity filters out rugs (liquidity = 0) or coins with extremely low liquidity, which would result in significant slippage during trades.

• 5m Buy: >10

A new coin that's becoming the talk of the town should have people scrambling to invest. Hence, there should be active trading even on lower timeframes.

Overall, this filter helps identify newly launched tokens with significant attention, the first step to potentially going viral on Crypto Twitter.

The Catch the Sleeper Build:

This build helps track how the market is trading today and may also help identify coins that are regaining relevance.

• Timeframe: <2160 hours

Three months is an exceedingly long life time for a memecoin. Beyond this period, 99.99% of coins should either be on centralized exchanges or fade into irrelevance (with the exception of TRUMP, which exchanges have refused to list due to political backlash).

• Liquidity: >50k

This build compares sleeper revival to currently popular coins, so a high liquidity threshold filters out newly launched tokens. You could alternatively use 'minimal time since creation' to achieve this, but it would exclude new launches that have gained sufficient traction.

• 1hr txn: >50

Setting a lower limit on transaction count filters out tokens that still have relatively high market capitalization but are no longer popular (hence fewer than 50 transactions per hour). This ensures tokens with low market capitalization but significant attention are highlighted alongside currently popular tokens.

This is crucial because a token's potential is often indicated by its 24-hour trading volume. Comparing the volume of these sleepers against established coins of the month can reveal how much attention they're receiving.

In terms of the technical aspects, this should be sufficient to identify promising coins early. For those wanting to go further, tools like https://app.bubblemaps.io/eth/ can be used to check discreet control of token supply by groups of wallets.

With this guide, navigating the on-chain market and identifying high-potential tokens early should be easier. In our next guide, we'll walk through how to plan your exit strategy, arguably more critical than your entry in such a volatile market.

Until next time, stay safe in the trenches, soldiers!