Early meme coin investing: a success story
Early stage investing in general
LSR project focuses on tokens with long term growth prospects and controlled risks. We base our approach on data analysis and risk management.
Meme and shitcoins in general are very risky. Investing in them is like gambling in casino. There is a chance for a jackpot but it is miserable. Less than 1% of memecoins become Shiba Inu or Dogecoin.
Early investing is even more dangerous.
We estimate that 95% of fair-launcned tokens on BSC are rug pulled in the first hours. And other 4% — in the first days. The 1% that survives produces high returns (up to x10 or even x100 in rare cases) but still is VERY risky.
For presale (as opposed to fair-launches) statistics is better. But it is still far from encouraging. We estimate that 90% of all presales are not profitable for investors.
Our approach
We asked ourselves: Is it possible to transform this gambling into something that is data-driven and not based just on hype?
For this purpose we develop LSR early discovery service.
It is:
- in BETA (open and accessible to anyone)
- is free (although in future it will become paid)
- is used by us ourselves (we’re direct beneficiaries of this service quality)
- is real-time
This tool monitors recent BSC contracts and audits quality of underlying projects.
Quality audit includes:
- contract code vulnerability checks (using Slither library)
- contract launch checks (ownership renounced, top holders analysis, LP lock/burn analysis, liquidity pool size analysis)
- website and social links validation (if they cross-reference each other, mention correct contract address, etc.)
- social account activity checks (are there enough users? are these users active or seem like bots?)
We remove tokens with bad audit score and present only a few most promising tokens in telegram feed.
Success case
Yesterday we’ve found early stage memecoin — INGLORIOUS SHIBA.
It had:
- relatively good score for a newborn project (37 in this case- most have 20 or so)
- noticeable initial pool size — 4BNB (it’s low, but shitcoins usually have even less)
- fine TokenSniffer rating: 65
- website and twitter (90% of shitcoins miss one or both)
- active telegram group (45 out of 161 users wrote something in last 24 hours and median number of messages was 4 — that’s fine)
We’ve invested a little and we were rewarded:
Concluding remarks
Investing in early stage tokens is VERY RISKY.
But automated selection tools based on quality audit can reduce these risks.
We’re testing exactly such tool: LSR discovery
It’s in BETA and is free and accessible to anyone.
Stay safe, DYOR, and have a nice day!
