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$BOB is a memecoin project that has caught the attention with significant growth this week.
In this dashboard, I used my on-chain friend, FlipsideCrypto, to delve deep into this project and assess whether it meets acceptable criteria for investment!
Note that all the results presented in this dashboard represent my own perspective and should never be considered as an investment recommendation. Always DYOR!
Let's go...
Analyzing the $BOB price versus ETH price reveals the following trends:
- $BOB experienced an upward trend after its initial release, reaching an all-time high (ATH).
- Following the ATH, its price initiated a strong downtrend, resulting in a 97% decrease.
- About 10 days ago, another robust upward trend began, making it 10 times higher than before.
- The main question is whether BOB will sustain this growth and reach its ATH again or not.
Analyzing the holders, we can observe the following:
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There are currently more than 17.5k holders, collectively holding about 1.5m BOB (equivalent to approximately $100 at the time of writing) in median. Calculating the average tokens held gives us 38.7m tokens, but this figure isn't very reliable due to the presence of large holders, such as CEXs (refer to the table on the left).
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When checking the token distribution among holders, more valuable data emerges; Based on the wallet count, we observe a standard distribution with tier4 being the major tier. However, if we consider total tokens (not total users), tier1, consisting of only 16 users, holds 71% of all tokens! It's important to note that this tier includes CEXs, so it can be easily disregarded. Continuing our analysis, we see that the other tiers are in order based on their number, with tier2 holding 15.4% of tokens in second place, and tier3 holding 9.3% of all tokens after that.
In conclusion, it appears that $BOB lacks a standard distribution, and its decentralization may be insufficient. This exposes holders to potential risks, such as price manipulation.
Upon analyzing on-chain trading activities, I observe that:
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In the initial days of the token, there was a significant increase in trading volume, trading counts, and the number of traders. This surge in activity contributed to the substantial price growth mentioned in the "Price Analysis" section.
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However, following the initial hype, these activities diminished. Presently, the token is experiencing an upward trend that commenced ten days ago. Notably, all the mentioned metrics are on the rise once again. Furthermore, the swapping analysis indicates a greater inclination towards buying rather than selling during this recent surge.
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Conversely, despite the increase in swap and swapper counts, which has a positive effect on continuous price growth, a closer look at the volume reveals that sell volume outweighs buy volume. In other words, during the recent surge, a small group of sellers is responsible for significant sell amounts to a larger group of buyers. Due to the substantial number of buyers, the price not only remained stable but also increased further.
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Investigating the profit/loss of large holders helps us gain a better perspective on the project. In general, when profits increase, the likelihood of profit retention and liquidity exit also rises.
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In the case of $BOB, as shown above, almost all major holders are currently in profit, with many of them experiencing substantial gains. Now, we must wait to see how much more profit will convince them to start selling. The question is whether this selling will occur gradually, having a negligible impact on the price, or if it will happen with greater intensity, potentially causing more significant fluctuations?
