Author: M7 Research Source: X, @m7_research

Recently, with Trump on the Solana Chain The issuance of $TRUMP on the market has set off a wave of celebrity coins issuing. Tokens such as $MELANIA, $RYAN, $ENRON, $LIBRA have appeared one after another, and the Meteora platform has quickly become the preferred issuance platform for such high-profile projects. These token projects show stunning similarities: extremely high FDV, exaggerated trading volumes and drastic price fluctuations. On the surface, these tokens have been sought after by the market for the celebrity effect, but in-depth analysis has found that behind this is actually a carefully designed wealth harvesting mechanism.

Meteora Platform: Innovative mechanisms become manipulation tools

Meteora Platform has gained popularity with its DLMM model, which has lower trading slippage and liquidity management mechanism flexible. However, these innovative features, originally designed to improve capital efficiency, have been improperly used and become profitable tools for project parties and insider traders.

Operational mode of systemic manipulation

In typical celebrity token issuance, the project party The following steps are usually taken:

Create tokens in advance

Create a DLMM transaction pool on Meteora

Inject trading liquidity

Observation found that project parties often create tokens and USDCs in advance The DLMM pool of the trading pair only injects unilateral liquidity. This means that at the opening, a large number of limit sell orders have been preset to wait for liquidity to influx, and the zero slippage characteristic of DLMM trading bin further amplifies the profit margin of the project party.

Insider trading analysis: accurate timing and system operation

$MELANIA, $ENRON, $ In LIBRA and other cases, insider traders have grasped the contract address (CA), trading pool information and opening time in advance. Specifically manifested as:

$LIBRA created tokens on the 14th, and the transaction was created 20 minutes before the opening of the 15th https://solscan.io/tx/3vtogCe5Q52iUYbY6CLRTV3RUf2ggSDoAkPtCYpJrvpvdoqx71mJbS5zgwvze7CDHTBzNohbg4eJiFPw5kUnu5Dh

$ENRON in January Create tokens on the 25th, and Meteora pool is not set up until one hour before the transaction on February 4th https://solscan.io/tx/ydzeZfhtfM4vwU2dH7ALB3acavcNBh5oTSuPgCCBPonoQvm4AbCo5P2Rw4WqyWUvRJj4D3mUN68JzTK1uwqF8Ej

According to GMGN data, nearly $4.5 million of funds poured in just 2 seconds after the opening of $LIBRA .

A trader (address: 8bZsrR5aRHDZYkWPLQoDFZUKsHCTeJ8uqhPnoMn7baG3) passed a single $1.4 million sniper The transaction took the first place, and the account initiated 170 transactions in the opening block, and it was not successful until the transaction was opened. Considering that there are pools that only add unilateral liquidity to the Meteora open every day, such a large amount of precise investment is obviously derived from insider information.

Detailed explanation of the profit model

This sniper trader adopts a systematic profit strategy :

Quickly convert 1.8 million tokens into 530,000 US dollars

Dive away the remaining tokens Distribute to 8 sub-accounts

Take the largest sub-account (DmzEMt7XHwA1tZM5d1XBGvTFWoUpTLutpR5d8cMxNghs) as an example: 750,000 tokens are sold every 20 seconds, and 14 consecutive operations are carried out.

The remaining tokens were added as unilateral liquidity to the $LIBRA-$SOL pair, harvesting 5500 SOLs in just 7 minutes.

Convert all LIBRA and SOLs to USDC within 5 hours after opening, making a profit of $5 million.

End, the sniper account made a total profit of US$17 million through this batch dumping method.

At the same time, the project party's profit is more considerable. The developer address (DefcyKc4yAjRsCLZjdxWuSUzVohXtLna9g22y3pBCm2z) also uses a unilateral liquidity mechanism to add tokens to the Meteora pool, and the commission income alone reaches 10 million US dollars.< /p>

Market impact and warning

$LIBRA case has attracted much attention due to its high attention. But from $ENRON, $MELANIA to $RYAN, they all show similar operating modes. Investors unknowingly fell into "Celebrity + Meteora + The big truck’s capital harvesting trap. The high liquidity mechanism of the Meteora platform has been abused by project parties and insider traders, and has seriously overdrawn the liquidity and investor confidence in the cryptocurrency market.