Swimming with the shark is a great way to maximize profits, but how do we go about doing that? And are there any easy and effective methods? In this article, I will provide a practical on-chain approach to earning profits.
Step 1: Check Shark Accumulation with Watchers.Pro (Only Available on ETH Network)
Create an account on Watchers.pro.
Go to Watchers.pro => Select Ventures Watch => Ventures Dashboard => Choose the list of famous MM teams and funds that control large amounts of tokens.
There are many funds and MM teams, but we should focus more on the two MM teams, Jump Trading and Wintermute Trading.
Follow Large Funds, MM Teams, and Whales Holding the Most Tokens
Method 1: Choose the fund you want to follow => Go to Portfolio => Check how the token quantity has changed in recent days? If the quantity increases steadily and continuously, there is a possibility that they are accumulating tokens to pump for upcoming events. Also, pay attention to other funds that are accumulating the same token, as if they are the same type, it is almost 100% likely to fly.
Method 2: Go to Ventures Watch => Overview => Selected Token => Choose the token you want to check => Check which fund holds the most tokens => Check again whether the fund is accumulating more tokens or not? If not, then go back to Method 1.
Step 2: Verify with News.
MM teams and funds have the advantage of information sources or sometimes they have accumulated enough tokens and are just waiting for the news to "pour in" to pump the market.
Verify News with Twitter:
Follow Key Opinion Leaders (KOLs) from China, Europe, and the US to see their style and how they post. Are they following the narrative research style of upcoming events or not? If so, pay attention to them.
=> If they mention a certain topic or keyword many times, then take note of it to find related events. Avoid KOLs who promote low-cap pump and dump coins without any purpose. To find such KOLs, everyone follows a list of researchers and follows those that they follow.
Verify News with dropsearn.com or Coinmarketcap.com/events.
Go to dropsearn.com to find, type in the name of the coin that has signs of accumulation as in the first step and filter related events => If there are signs that the MM team is accumulating tokens.
Check the news with related keywords, then that is the money flow that is pouring in. However, if they are only accumulating without related keywords, it may be speculative money. However, from my observation, MM teams like Jump and Wintermute rarely speculate as they are market makers who need to attract large liquidity to sell. For example, last time I checked, Definance Capital and Jump Trading had signs of accumulating LDO since December. But I didn't pay attention until I found out that there was an upcoming Shanghai ETH update event, and once again, Jump had signs of accumulating CHZ for the World Cup event, and we all know the results. So, the question is, how do we connect the dots between the signs of accumulation and related events? For example, if there is a Shanghai ETH update, few people know which coin benefits from this event, right? The only answer is to read and learn.
View the Twitter of KOLs to derive conclusions and analysis. There is no other way, or it is quicker to directly ask the researchers working in the funds.
Step 3: Verify the token wallet's behavior.
After identifying which funds hold which tokens and whether there are signs of accumulation, it is important to check the behavior of the wallet. For example, if the token is pushed onto a CEX, does the price react by increasing or decreasing? Is the token being listed on the exchange a real threat, or is it just a bluff? This needs to be checked carefully, since on-chain transparency only displays what they want us to see, and what we need to gain insight into is the behavior of whales.
Step 4: Create a watchlist of coins by category, set alerts, and trace related wallets.
a. Set alerts using on-chain tools and find related wallets. After identifying signs of accumulation, find related wallets to avoid being tracked, as MM can divide their wallets to avoid detection. Look for subsidiary wallets and see which wallets interact with the main wallet to infer behavior.
Go to Ventures Watch => Ventures Dashboard => Scroll down to Transfer Activity => Top Interacted Wallets => Filter wallets that interact the most to find undesignated subsidiary wallets => Paste the wallet address into "Money Flow" or "Address Clustering" to track.
Once the wallets have been identified, set alerts using Debank, Depocket, or Watchers.Pro which will send automatic alerts to Telegram.
b. Set alerts on Tradingview/Tab Trader charts.
Categorize into short-term and long-term. For short-term, categorize by trends such as Zkrollup, LSD, etc. For long-term, categorize by investment funds/MM such as Jump Trading, Wintermute, Binance.
If the price increases => Volume increases => Accumulation is good => Consider watching.
For entry, during a wave, wait for BTC to adjust at dynamic support (EMA) before buying.
Note:
Analyze behavior and check at a specific time. Analyze behavior over a period of 1-2 months.
Do not get too caught up in checking wallets, transactions, or token unlocking. What we see is what we want to see or what the platform wants us to see. In addition, if it is not significant, no one really cares. Therefore, refer to fundamental analysis and technical analysis, and news combined with on-chain analysis.
MM is only part of the equation. Depending on the project, if the project founder says it will go up, it will go up, and if it goes down, it will go down. It's not just about which team's MM is strong or weak - it also depends on the market. In short, there are many factors to consider, such as APT Alameda, whose primary MM was APT. Despite FTX crashing, the price of APT still rose sharply because of its good project and strong backers. The most important factor is still the project owner.
Remember, the earlier you know, the better the position. However, research carefully with the right keywords and sources of information.
