Step 1: Evaluate the Team
- Check for Transparency:
- Look for projects with a public and experienced team.
- Use LinkedIn and GitHub to verify the team’s credentials and coding activity.
- Red Flag: Avoid coins with anonymous developers unless there’s overwhelming community trust.
- Past Projects:
- Research the team’s previous projects to assess credibility.
- Pro Tip: Use Crunchbase or AngelList to track the team’s history.
Step 2: Analyze Tokenomics
- Supply Distribution:
- Use Solscan to check wallet distributions.
- Red Flag: If the top 10 wallets hold more than 50% of the supply, it’s likely a scam.
- Look for fair distribution with no single entity controlling too much of the supply.
- Burn Mechanisms:
- Check if the coin has a burn mechanism (e.g., Shiba Inu’s burn wallet).
- Pro Tip: Coins with deflationary mechanisms (burning tokens over time) tend to perform better.
- Vesting Schedules:
- Ensure team tokens are locked (vested) to prevent dumping.
- Red Flag: Avoid coins where the team can dump tokens immediately after launch.
Step 3: Assess the Community
- Social Media Metrics:
- Use LunarCrush to track:
- Social Volume: High social volume indicates growing interest.
- Sentiment Score: Positive sentiment suggests bullish momentum.
- Pro Tip: Look for coins trending on Twitter, Reddit, and TikTok.
- Telegram/Discord Activity:
- Join the project’s community to gauge engagement and moderation quality.
- Red Flag: If admins are pushy or avoid tough questions, it’s likely a scam.
Tools for Fundamental Analysis
- CoinMarketCap/CoinGecko:
- Filters:
- Sort by “Gainers” or “Trending” to find Solana meme coins with recent price spikes.
- Check the “Market Cap” to avoid low-cap scams (under $1M).
- Use Case: Quickly identify potential coins for deeper research.
- RugDoc:
- Filters:
- Look for projects with a “Low Risk” rating.
- Avoid coins with no audit or a “High Risk” rating.
- Use Case: Filter out scams before investing.