chainEDGE Uses: Discovery, Defense & Attention

chainEDGE Uses: Discovery, Defense & Attention

Gm,

I’m hosting another live stream / office hours for the chainEDGE crew at 11am EST today. It will also be recorded + streamed from Twitter as well.

This post is also going into a separate area for people to easily reference for chainEDGE education purposes. I’ll be going over the 3 overarching use cases of chainEDGE data (and also how NOT to use it).

Discovery

While the tool is using rolling 6 month P&L to determine the best traders + streams what they are doing + holding, the goal is not to “find one high PnL wallet and copy trade it”. The goal is to rapidly improve your (our) token idea discovery vs. aping into someone else’s bags after its shilled on CT. This does not have to just be new launches (though that is one use case).

But a higher EV of aping new tokens (at least right now) is using our portfolio data, filtering for 0-10d old tokens, sorting by $ value held, and using that as a starting point for new token discovery. Nearly every ETH & SOL banger has been popping up under this filter, it requires much less time vs. watching the alpha stream or tinkering with alerts. And in the next couple of weeks it will get even easier with our upcoming launch of “Portfolio Alerts”, which I think will be more alpha than custom swap alerts. For example, my dream alert at the moment would be:

“alert me when $100k has been accumulated into a token aged 0-10 days by 3+ wallets with $400k PnL”.

We’re also going to be adding more custom alert filters that help with improving new launch discovery, including “number of tokens traded”, to help filter out some of the more active traders that clog up the alerts / alpha stream.

Another underappreciated feature that we shipped into the site is our “Smart Follows” data, which took CT accounts that were early to all of the major runners over the past 6 months and streams their follow activity. This is another useful discovery tool for pre launch and new launch opportunities. Like LandWolf shown here for example, which launched and slowly cooked to over $25mm FDV. This feature alone costs at least $120/mo almost anywhere else and we have a lot more additions coming to it (including follower scoring, more details, etc).

Defense

Especially for new tokens, when smart wallets are all dumping (especially at a loss), it can be a very strong sell signal. For any token you can watch smart balance trends over time to see accumulation / dumping, but can also monitor this at the wallet level. One of my favorite things is looking at the strength of PnL of remaining holders (the number of dollar signs in the wallet labels). In my experience, when only low PnL holders remain, and sharper smart $ has left, most of the gains have been extracted and its time to move on to the next one.

Attention

While everyone wants to chase the next new launch at a chance for a 1,000x while dodging scams and team bundles, you can also use chainEDGE data to get a sense of where onchain trader attention is. During the lead up to the AI run earlier this year, the smart money holdings data showed accumulation across tons of AI projects. Today it is mostly memes, led by PEPE, TRUMP & BOBO, along with BANANA (which is hitting ATHs). You can use this “top end” of the smart holdings data to see where true conviction lies, where attention really is concentrated, which SOL memes are gaining / losing steam (for instance michi was one that just continually climbed the list on its way to ATH).

What’s Coming Next

• Solana portfolio summary (next week)

• Alerts + filters on portfolio data movements (within the next month)

And then finally, one of our most exciting developments yet is on its way as well. The problems with any tool like this is that (1) the user has to seek out the signal and (2) the strength of the signal is not entirely known / quantified.

With our database of custom TG alerts + upcoming portfolio alerts, we have laid the ground to start quantifying each “custom” signal. That means later this year we will have the ability to say “these 3 new launch alerts have 40% hit rates, 3x avg ROI, 15% rug rate, etc”. With fully quantified strength of signals, it will position all of us (as we are power users as well) to have a much larger edge in the onchain market. Once completed I’ll share more on this, but I think it’s one of the most exciting things coming to chainEDGE yet.

As always reach out with any comments or questions.

Onchain Wizard
chainEDGE Founder