1. Bonding Curve
01Definition
A bonding curve is a launch mechanism where token price changes according to buying and selling activity before the token reaches a normal liquidity pool.
02Why it matters
Early buyers may enter much cheaper than later traders.
03What to check
- How far along the curve the token is
- How much buying is needed before graduation
- Whether early buyers already control large supply
- Whether momentum is accelerating or fading
04Healthy / Dangerous
Healthy
Curve progress and early ownership are checked together.
Dangerous
Progress accelerates while cheap inventory stays concentrated.
05Beginner mistake
Assuming every bonding-curve token will graduate.
06Takeaway
Early launch price is shaped by the curve, not by a mature market.
Compare measured launch progress and stage coverage. Missing progress remains unknown.
2. Graduation
01Definition
Graduation is the transition from the launch mechanism into a DEX liquidity pool.
02Why it matters
Graduation changes how the token trades and often brings a new wave of attention, bots, and liquidity.
03What to check
- Where liquidity is created
- How much liquidity is seeded
- Who controls the LP tokens
- Whether early holders sell into graduation
04Healthy / Dangerous
Healthy
The destination pool and seeded liquidity are verified.
Dangerous
A migration label is mistaken for proof of liquidity or continuation.
05Beginner mistake
Treating graduation as guaranteed continuation.
06Takeaway
Graduation is a transition point, not a promise of higher price.
Compare confirmed graduation with unknown status and volume-only candidates. Activity alone does not confirm graduation.
3. DEX
01Definition
A decentralized exchange is where traders swap tokens directly through liquidity pools.
02Why it matters
Different chains and DEXs have different liquidity, bots, routing, fees, and trading behavior.
03What to check
- Which DEX hosts the main pool
- Whether there are multiple pools
- Pool liquidity
- Trading fees
- Routing quality
04Healthy / Dangerous
Healthy
The exact contract, pool, route, and fees match the intended trade.
Dangerous
A matching ticker leads to the wrong contract or a thin secondary pool.
05Beginner mistake
Buying from a small secondary pool instead of the main pool.
06Takeaway
Know where the real liquidity is.
Search the exact contract and compare returned pool listings, chain, and coverage before choosing a listing.
4. Snipers
01Definition
Snipers are wallets or bots that enter extremely early around launch.
02Why it matters
They can acquire very cheap inventory and later sell into retail demand.
03What to check
- Entry time
- Entry price
- Current holdings
- Amount already sold
- Whether sniper wallets are related
04Healthy / Dangerous
Healthy
Early inventory, prior sales, and remaining balances are traced.
Dangerous
Cheap early inventory is large relative to the pool's exit capacity.
05Beginner mistake
Looking only at what a sniper still holds.
06Takeaway
Early cost basis matters as much as current holdings.
5. Fresh Wallets
01Definition
Fresh wallets are newly created or newly funded wallets with little prior transaction history.
02Why it matters
Clusters of fresh wallets can indicate coordinated launch participation or attempts to hide ownership.
03What to check
- Funding source
- Timing of funding
- Similar trade size
- Similar entry time
- Transfers between wallets
04Healthy / Dangerous
Healthy
Funding and trade history are checked before inferring independence.
Dangerous
Many newly funded addresses repeat the same entry and transfer pattern.
05Beginner mistake
Assuming every fresh wallet is a new independent trader.
06Takeaway
Fresh wallets are clues, not proof. Follow their funding.
6. Slippage
01Definition
Slippage is the difference between the expected trade price and the actual execution price.
02Why it matters
Thin meme markets can move quickly while your transaction is executing.
03What to check
- Slippage setting
- Current volatility
- Liquidity
- Trade size
- Whether the token has unusual transfer taxes or restrictions
04Healthy / Dangerous
Healthy
Tolerance and quoted impact are reviewed separately before submission.
Dangerous
Tolerance is increased repeatedly just to make an unexplained failure execute.
05Beginner mistake
Setting extremely high slippage without understanding the cost.
06Takeaway
More slippage can improve execution but can also produce a much worse fill.
7. Spread
01Definition
Spread is the practical difference between what buyers pay and what sellers receive.
02Why it matters
In thin markets, you may lose money immediately simply by entering and exiting.
03What to check
- Pool depth
- Price impact
- Fees
- Difference between quoted buy and sell value
04Healthy / Dangerous
Healthy
Compare executable buy and sell quotes including fees.
Dangerous
The chart price hides a costly immediate round trip.
05Beginner mistake
Treating the chart price as the price you can actually trade.
06Takeaway
Displayed price and executable price can be very different.
8. MEV / Sandwiching
01Definition
MEV refers to transaction-ordering strategies used by bots. A sandwich attack places transactions around yours to profit from your price impact.
02Why it matters
Large or high-slippage trades can become attractive targets.
03What to check
- Slippage
- Transaction protection offered by the platform
- Trade size
- Chain conditions
04Healthy / Dangerous
Healthy
Review execution protection, quotes, and the actual transaction result.
Dangerous
A large order with broad tolerance gives adverse execution more room.
05Beginner mistake
Assuming every bad execution is random slippage.
06Takeaway
Your transaction can be part of someone else's trading strategy.
Level 2 Checklist
Before trading a newly launched token, know:
- Is it still on a bonding curve?
- Has it graduated?
- Where is the main liquidity pool?
- Who entered extremely early?
- Are fresh wallets clustered?
- What slippage and price impact are you accepting?
- Is the launch already dominated by bots or snipers?