🐋Whales watching

Whales / Wallet watching has is a crucial part to understand when getting started in crypto

Goal is trying to find wallets who have better information than us or are just better traders

Needless to say, copy trading without spending some time researching the project is not optimal, as you might have different investment goals compared to the whales you are following; if you have short term investment horizon while the wallet you follow are instead long term investors, blindly following them with no conviction will not work for you

Whale watching is nice for discovering what to buy and then assess if that might work with your investment strategy

Best way to perform whales watching is trying to spotting large and early investors to a successful project

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🐋Finding large, early investors to a very successful project

Using Etherscan is particularly tedious, that is why there is often alpha in finding wallets directly from there.

Goal is finding large buys very early on.

These wallets are either good at spotting gems early, or have better information than you.

(But Sometimes these wallets might just be lucky.)

Other times they end up being early to other projects as well, helping you returning multiple times your capital, which is needed to grow your portfolio from a small base to a much larger one.

Let's take meme token $PEPE as an example.

$PEPE started trading on April 15th, 2023 on Ethereum, when meme coin season was super hot. The market cap quickly reached >$1bn in few days, and the project has a still market cap of ~$600m.

To find the wallets that really crushed it on $PEPE, we need to look at big, early buyers.

To do that, we head over to Etherscan and select the following section

Afterwards, we download the list of transactions and check and selected the interesting period we want to look at (around April 15^th)

We then get an excel with all the early buyers of $PEPE

Looking through this list, you can see various sizable buys at launch that we need to investigate;

It is useful to look at buyers who

• Aped with size very early

• Are very active (buy stuff often)

• Do not act like bots (buying thousands of random shitcoins every second);

• Are not MEVs bots: if you look at top transactions in the excel, most are made by MEV bots like jaredfromsubway.eth

The transaction highlighted in orange in the pic below caught our eye: (0xff52c7d1f7185318eedfdc21c1896af6dda8f5c9a779ef98b3a84c4d378a2a52)

In the transaction, the wallet 0xa682db504fcb0ac42b38a7f2c3aeb7a070ea3e09 bought $PEPE the day after launch and with size (was one of top 10 transactions around launch date, if we exclude bots); the token then run into billions $ market cap

We also noticed that the wallet is particularly good at spotting other meme coins very early: he also bought HarryPotterObamaSonic10Inu meme coin very early (3rd June 2023) wan the coin was around ~$1m market cap; it is now (as of 17^th June 2023) ~$60m market cap

This is definitely a wallet to follow if he makes any future memecoins buys

This process takes time, but can be replicated until you create your list of most interesting wallets to keep track.

Once you have your full list, you can add the list of wallets you follow to the App Zerion so that you receive a user friendly notification every time they make a transaction (https://zerion.io/); otherwise, can add them to Etherscan or Nansen alerts

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