At the end of 2022, BONK, the first meme currency on the Solana chain, was launched, and it continued to rise nearly 40 times amid skepticism. In addition to the attractiveness of BONK’s own meme narrative, Gotbit, the market maker behind it, is also one of the main factors driving BONK’s rise. It helped BONK’s market value increase from 10 million to 2 billion.

As a CEX and DEX market maker, Gotbit has been committed to the cryptocurrency market since its inception, managing capital in decentralized assets. Gotbit has been marketing memes since late last year. If you participated in the Solana reversal meme trend at the end of the year, you must remember the 3700x ANALOS in 5 days. The market maker behind it is Gotbit.

Related reading: "ANALOS 3700 times a week, "reversal meme trend" is sweeping Solana》

Although Gotbit is the most outstanding market maker The most popular project is definitely BONK, but ANALOS undoubtedly allows Gotbit to serve as the "wealth password" for playing memes. Gotbit officials even directly called the community to ask "Who's next?" Today, meme hype continues, and Gotbit is still making markets for various meme projects. YE and CP are two of the projects it announced cooperation with in the past week.

After obtaining Gotbit market making , YE and CP opened with gratifying gains, but were quickly smashed after the high point, suspected of being rug. Subsequently, community members pointed out that YE, which was cooperating with Gotbit, seemed to be a fake contract. On-chain detective ZachXBT tweeted that both YE and CP were scammer projects. However, Gotbit had no redundant explanation for this and chose to directly delete the cooperation tweet.

From meme wealth password "Danger flag"?

On December 20 last year, Solana’s reverse meme ANALOS announced the contract. Three days later, Gotbit officially announced its cooperation with analoS and stated that it already holds ANALOS. Gotbit provided $10 million in market-making funds for ANALOS, allowing its market value to exceed $150 million from the initial $40,000, an increase of more than 3,700 times in just 5 days. At the same time, Gotbit also hinted that it will assist ANALOS in listing on CEX, and even "replicate" the development path of BONK.

Subsequently, Gotbit seemed to be actively active in the meme community on a large scale. The official twitter account would actively ask the community about the next project they hope to collaborate on. For a time, Gotbit became the wealth password for retail investors to invest in memes, also known as the “meme DWF.”

The community sent questions, Is Gotbit’s choice of cooperation projects a bit blind? We can look at the subsequent development of ANALOS. Just 2 weeks after cooperating with Gotbit, the market value of ANALOS began to plummet to $19 million after reaching a peak of $150 million, and has never improved since then. After using the Bonk bot to purchase ANALOS, a community member discovered that the token symbol name was displayed as Null instead of ANALOS.

After checking the ANALOS contract, it was found that the top 10 holders who purchased ANALOS had a combined profit of more than $7 million, and it seems that the team holds 50% supply, and this is a very dangerous sell signal. In addition, unlike the initially announced "LP is permanently locked" and "tokens are 100% destroyed", the ownership holder address of ANALOS holds 21% of the supply, and LP is subsequently unlocked. On top of that, their metadata is mutable, which means they can change the transaction history and even wallet addresses selling and buying can be hidden.

At this time, the community began to realize that something was wrong, and some people began to accuse Gotbit of being a "liar". However, Gotbit still has not improved, and there are still many meme rugs in subsequent cooperation, such as SOMBRERO, MACHO, SIMBA, etc., and even the meme EOS that won the meme competition held by Gotbit also rugs.

Pulling the market creates FOMO, and it will crash when it reaches the top

In fact, judging from the establishment of Gotbit , its market-making method from the beginning was sufficiently fraudulent.

In 2018, Alexey Andryunin founded Gotbit together with his undergraduate classmates, when ICOs were popular. While it costs $8,000 for a cryptocurrency to be listed on a small exchange, supporting fake trading volume via algorithms that mimic normal market activity would cost $6,000 a month. Gotbit plans to charge fees to inflate the trading volume of unknown cryptocurrency exchanges.

To achieve this goal, a project needs to be listed on two small exchanges. During this process, Andryunin was responsible for contacting token projects to sell Gotbit’s “market making” services. In order to display fictitious trading volumes, his partners coded the trading bot to fill the order books of small trading platforms with extremely low trading volumes and close orders themselves using the same or another account to exchange tokens with each other. , to create the illusion of an active market so that assets can be listed on CoinMarketCap.

Once the token is listed, Gotbit will exit the market, leaving other intermediaries to complete the final step. According to an article by coindesk Article pointed out that there are 300 to 500 projects on CoinMarketCap belonging to Gotbit customers. Alexey Andryunin said trading platforms were aware of the manipulation but had no intention of stopping it.

In September last year, Gotbit’s market making strategy was leaked out.

The report shows, “In the first few minutes of the price discovery phase, we will push the price up to 10 times to create FOMO and accumulate as much buying power as possible , to reach extremes and sell the largest tokens at peak; during the first 12 trading hours, when the market is not yet fully connected, we aim to take advantage of existing arbitrage opportunities and will focus on making quick but substantial profits "On launch day, our goal is to have a project with a daily trading volume greater than 5 million, and most of the trading volume will be generated for free on CEX through our trading volume generation system."

According to this strategy, Gotbit’s market-making policy will be divided into three phased goals. The positive situation is to consider reaching 20 times the first peak after the opening and pulling up within one month. Pan to 25 times.

@oleg_fem believes that these services exist because some trading platforms try to require projects to provide not only a minimum trading volume, but also a minimum number of traders, while implicitly allowing Market makers get involved. Therefore, if the trading platform fails to provide traders and trading volumes, the project’s only recourse is to perform wash trades.

Although Gotbit’s cooperation project Among them, many memes have been listed on Kucoin, Bybit, Crypto.com, and even projects are listed on Binance. Some retail investors have indeed made millions of dollars by investing in memes such as DUKO, PENG, SOLAMA, MYRO, and BONK. . But it is undeniable that Gotbit’s market-making fake contract meme and the existence of more than one rug project have greatly weakened the community’s trust in it.

Welcome to join the official BlockBeats community:

Telegram Subscription Group: https://t.me/theblockbeats

Telegram Discussion Group: https://t.me/BlockBeats_App

Official Twitter Account: https://twitter.com/BlockBeatsAsia