Recently, HAZE, a prominent trader known for grid trading, made headlines on Twitter as the “Meme Fool” after losing $350,000 speculating on meme tokens. In this podcast, we discuss his meme trading journey and GMGN, a professional meme-focused on-chain tool he helped develop. Amid the booming meme market, GMGN has emerged as a red-hot project with impressive daily revenue. The podcast also explores whether GMGN might introduce a “Fool Index” inspired by HAZE’s experiences, as well as its future plans.

This audio was transcribed using GPT, and minor errors may exist. Listen to the full podcast:

YouTube:

Spotify: https://creators.spotify.com/pod/show/7qfkmlvhrl8/episodes/EP-43--35--HAZE--GMGN-e2r6i9r

Why Is HAZE Dubbed the “Fool of Memecoins”?

Colin: Welcome back to our podcast, everyone. Joining us today is a familiar friend, HAZE, who has been trending on Twitter recently. Today’s topic is lighthearted but insightful. HAZE, why have you been called the “Fool Index” in meme trading? Let’s hear your side of the story.

HAZE: Hi, everyone. I’m HAZE, an advisor to the GMGN project. The “fool” label is straightforward — I’ve been aggressively aping into memecoins on-chain, throwing in both big and small amounts of money. But I believe breaking traditional mindsets requires paying some tuition fees. If you approach memecoins with conventional investment logic from the secondary markets or value tokens, you’ll likely get burned. In my case, I ended up contributing $350,000 in “tuition” to on-chain liquidity pools.

The account I used for this was specifically for speculative purposes — a “tuition account” typical of learning from losses. Lately, I’ve made some gains. If I were still losing money now, I’d truly be the fool, haha.

The Origin and Naming of GMGN

Colin: From our previous conversations, I recall that memecoins weren’t as popular back then, but you had already started working on this product. Can you share its backstory?

Haze: Sure. Last year, I began paying close attention to new products as my entire investment philosophy is product-driven. During the DeFi era, I did quite well with investments, but value tokens never performed as expected. That experience pushed me to search for new narratives. Initially, I came across UniBot. It addressed a core user need on Ethereum by improving transaction speeds, enabling users to secure early-stage project costs. Its 1% fee model struck me as both practical and commercially sound.

However, after using it, I felt that TG Bot-style products lacked the accessibility and intuitive experience required for mass adoption. This led me to consider creating a product with a better user experience — something that not only allowed users to jump into projects quickly but also made visualization, data analysis, and usability seamless and straightforward.

In July last year, an independent team capable of building such a tool approached me and asked what the product should be called. I suggested, “Let’s call it GMGN.”

When it comes to naming, I believe a good name is half the battle. GMGN naturally resonates with the crypto-native community. I wanted the name to stem from the language of the community itself. GMGN is simple, catchy, and relatable. Back in the NFT days, people frequently used phrases like GM (Good Morning) and GN (Good Night) as greetings. We envisioned this product as one that provides a delightful, friendly experience for the community, so the name GMGN felt perfect.

Our slogan at the time was: “GMGN, Degen Every Day.”

It’s a truly native slogan, encouraging users to open GMGN daily, dive into the on-chain action, and make profits. That’s the philosophy and origin behind GMGN’s name and positioning.

Ethereum to Solana: The Explosion of the “Insider Wallet” Feature

Colin: How did GMGN evolve over the past year?

Haze: Initially, we started on Ethereum because I was confident in its growth cycle. At the time, emerging memecoins like MOG, as well as Bitcoin-inspired tokens, were gaining traction. I thought Ethereum would be a solid foundation for this venture. However, as we developed, we encountered challenges related to user sentiment, asset issuance effects, and transaction speed on Ethereum. The fast-paced, high-risk, high-reward nature of memecoins clashed with Ethereum’s slower transaction experience.

This led us to consider switching chains. Our options included Blur, Blast, Coinbase, and Solana.

In January, Solana experienced a resurgence, and its maturity and longer history made it an ideal choice. After team discussions, we decided to prioritize Solana, with Blast and Base as backups, while committing to a multi-chain strategy. That’s how we transitioned to Solana. However, during the BOME wave in March, we missed the chance to capitalize because we were still focused on Ethereum and hadn’t fully deployed on Solana.

By May, GMGN was live on Solana, and I promoted it on Twitter. The feedback was positive, especially regarding our dashboard feature, which allowed users to identify and analyze smart money addresses, study large donors’ moves, and perform data analysis. This helped us build a base of early adopters. With these users, we iterated the product to better align with real needs.

The feature that truly made GMGN explode in popularity was the “Insider Wallet” function. Inspired by user feedback and our observations, we saw an opportunity to leverage blockchain transparency more effectively. We introduced a feature to flag projects with insider trading. For example, when aping into a project, users care most about whether it’s manipulated by insider wallets. With this feature, we could clearly label projects with insider wallets.

When the “Insider Wallet” feature launched in April and May, it built on GMGN’s reputation for smart money tracking and drove explosive growth. Users began sharing screenshots in community discussions, showcasing GMGN’s ability to flag insider wallets and the number of such addresses in specific projects. This buzz significantly boosted GMGN’s visibility.

As more users joined, they also began exploring and benefiting from our smart money tracking feature. We provided clear wallet labeling and linked some of this data to Twitter profiles. Users could even add follow and note features to track specific wallets.

Many users started creating tutorials, such as “I found a smart money address that made X amount,” and shared tips on using GMGN for data mining. These posts, especially on Twitter, garnered surprisingly high engagement. More creators began using GMGN features for their content. Whether in Chinese or English, many high-visibility posts on Twitter now showcase GMGN’s dashboard capabilities. This marked the true beginning of GMGN’s explosive growth.

As the memecoin market continued heating up, more influencers — big and small — along with community users began recommending GMGN. This has led to surging adoption in recent weeks. In just four days, GMGN’s servers were overwhelmed six times.

Colin: So the platform went down for several days in a row?

Haze: Haha, yes, exactly. It was mainly due to crawler attacks that caused traffic surges. But more importantly, it reflected the sheer enthusiasm of users flocking to GMGN for their memecoin trading needs. Our development team worked around the clock to scale up, but the demand still outpaced our efforts.

This was entirely unexpected. Despite preparing for significant traffic, the memecoin market’s frenzy exceeded all our forecasts. It also validated GMGN’s appeal to users. We’re incredibly grateful to everyone who supports GMGN — your enthusiasm drives us forward. Rest assured, we’ll keep optimizing the servers.

Colin: What’s the current growth trajectory for GMGN’s user base? Any notable milestones?

Haze: You can check our metrics on-chain. Over the past two weeks, transaction volume has surged by 600%.

Colin: What’s the current size of the GMGN team?

Haze: Around 30 people.

Reviewing Security Incidents in Other Platforms: Optimizing GMGN’s Approach

Colin: Recently, DEXX experienced a major security breach, which has drawn a lot of attention. Two friends will join us later to discuss this further. I’m not deeply familiar with the memecoin sector, but from my understanding, DEXX and GMGN are direct competitors, right? Perhaps DEXX leans more towards trading while GMGN is more data-focused?

Haze: That’s not entirely accurate. While we are data-centric, GMGN is fundamentally a trading platform, making us direct competitors.

The discussions around the DEXX security incident have been extensive, with various analyses and evidence circulating on Twitter. From what we know, DEXX transmitted private keys in plaintext — a glaring security oversight. Additionally, the stolen funds were transferred one-to-one from user wallets to the hacker’s address, strongly suggesting a server compromise. Since private keys were unencrypted, any server breach would expose them, enabling hackers to drain funds easily. Another possibility is insider theft.

Regardless of the specifics, security is paramount for custodial platforms. For TG Bot-like tools that store private keys, the keys are essentially the users’ funds. Robust measures are critical, including encrypted private key storage, stringent internal controls, and strict separation between operational and secure storage servers. Offline solutions and real-time monitoring also play essential roles in ensuring platform safety.

If a breach does occur, the first step is prompt detection and loss mitigation at critical points. For minor thefts, the platform’s revenue can cover user compensation. While no system is 100% secure, the key lies in rapid response and the ability to indemnify users. These protocols set higher standards for platform security.

At GMGN, we’ve prioritized security from the outset, building a dedicated team of professionals. With experience in the internet era, crypto trading, and handling large fund flows, we understand blockchain’s “dark forest” rules. Platform security is the fundamental trust factor we uphold.

Unlike DEXX, GMGN offers two user experiences:

1. TG Bot Mode: This stores user private keys on servers, catering to advanced users needing speed and strategy.

2. Plugin Wallet Mode: Users connect GMGN directly via wallets like Phantom or MetaMask, with each transaction requiring manual authorization. This approach is comparatively safer.

We’ve invested heavily in frontend and backend security optimizations. Learning from security issues affecting other platforms, we continue to identify vulnerabilities and refine our defenses. We aim to elevate our platform’s safety with a cautious and proactive approach.

Colin: In our group discussions, it was noted that besides GMGN, two other prominent products, BullX and Fountain, dominate the market. Given the recent security incident, are more users now gravitating toward GMGN?

Haze: Yes, that’s correct. The security breach has indeed driven more users to prefer GMGN.

GMGN’s Differentiation and Growth Beyond the Memecoin Hype

Colin: Do you have data on your market share? What’s the approximate breakdown?

Haze: In terms of market share, we’re still slightly behind the other two major players, as they had a first-mover advantage. For example, during the BOME market boom, most users relied on their tools for trading because platforms like Jupiter and Raydium were inaccessible at the time. They’re currently the largest TG Bot tools on Solana.

As for BullX, they started in the Western market and have a strong user base there, which helped drive their growth. On the other hand, we are rooted in the Asian market while also expanding into the Western market. Our competitive positioning is somewhat similar to BullX, but when it comes to Phantom, we see it as a long-term goal.

Colin: In the Chinese-speaking market, would you say GMGN is in a favorable position?

Haze: Yes, absolutely. I believe this is thanks to the trust and support we’ve received from our users. It’s this trust that has given us a solid reputation and allowed us to enter a phase of rapid growth.

Future Strategy: Stable Services and Adapting to Emerging Narratives

Colin: What are your plans for future product development and strategy?

Haze: Our approach is straightforward: First, ensure our services are stable. Second, strive for faster and more seamless user operations. Third, carefully track user feedback and prioritize updates based on their needs. Our goal is to make the user experience increasingly smooth and intuitive. That’s the essence of our strategy.

Colin: Are you worried about declining interest in memecoins? Or, if the hype fades, will it affect your product’s longevity?

Haze: GMGN started in the memecoin space, but at its core, it’s an on-chain product. Its mission is to stay aligned with on-chain trends and narratives, providing users with solid trading opportunities and helping them capture on-chain value. This is the fundamental positioning of GMGN.

Even if memecoins lose momentum or their current appeal diminishes, our focus will shift to identifying the next big narrative. The team will work on quickly adapting to new trends.

It’s not that we’re solely focused on memecoins — they’re a significant part of GMGN right now, but they’re not the entirety. The blockchain world evolves rapidly, with trends and innovations emerging at breakneck speed. We can’t afford to have a narrow focus or remain stagnant. It’s crucial to explore, experiment, and identify promising entry points. If we find a way to address users’ pain points, we’ll act on it decisively while continuously refining our understanding and approach.

If we stay too comfortable in the present and fail to challenge ourselves, no matter how strong our position might be, we risk being surpassed as time goes on.

Development Details: “Fool Wallets,” Sector Specialization, “Conspiracy Groups,” and Trading Experience

Colin: Got it, thanks. Now, two friends — defioasis and Yi Yi — will join the discussion. They have extensive experience and insights in the memecoin space and can dive deeper into specific topics with you.

Defioasis: I have two questions. First, regarding the “Fool Wallet” indicator, is it possible to create a reverse “smart money” tool? For instance, tagging wallets with very low success rates or those that always buy at the top?

Haze: That’s absolutely feasible. The community has previously discussed a similar concept of “cap wallets” — wallets whose purchases are followed by price drops. If we have the bandwidth, we could label these wallets as low-success-rate indicators, essentially the “cap kings” of the blockchain.

Colin: That sounds like a fun idea, haha.

Haze: It is! Many in the community joke about buying when prices are sky-high, only to “cap” the market. Realistically, users chasing highs often buy at the top, and prices decline afterward. These “cap wallets” could certainly serve as contrarian indicators.

Defioasis: Right, this could be a helpful sell signal. My second question is about memecoins as a broad sector, which includes many subcategories like AI memecoins. Could GMGN enhance its categorization and rotation features to let users spot trending sectors at a glance?

Haze: The demand for sector categorization has indeed come up. Some users aren’t actively trading every day but might hear about a trending sector and want to jump in. Providing clear displays of metrics like market cap and price would be very helpful. We’re considering adding these features in future updates.

Defioasis: One more question — GMGN has two main entry points: the TG Bot and the plugin wallet. Have you analyzed which has more users or generates higher transaction volumes?

Haze: We haven’t conducted such an analysis recently.

Yi Yi: I have two questions as well. First, apart from smart money, the community is particularly interested in two things: uncovering “conspiracy groups” and predicting which tokens Binance might list. GMGN has strong data analysis capabilities, especially for smart money. Do you plan to further explore linked wallets and identify those potentially involved in conspiracies?

Haze: We’ve partially addressed this already. Initially, we introduced the insider wallet feature, and later added the “fish” tagging system. Suspicious wallets are flagged as “red fish,” based on criteria such as synchronized operations across multiple wallets and consistent fund transfer patterns. For instance, I recently tested a wallet identified as a distribution address. It was flagged as a “red fish” with an accompanying red exclamation mark.

Additionally, we have wallet distribution analysis features. For example, developer wallets involved in token distribution are marked with a “sniper” icon. Regarding conspiracy groups, we’ll continue to analyze and identify them through on-chain data, while avoiding subjective tagging methods.

Yi Yi: Got it. My second question is whether K-line tools could be integrated with on-chain data. For example, within a specified time frame, users might want to identify who drove a price rally or profited during a major surge. Could this be a development direction for GMGN?

Haze: Currently, we’re focused on providing broad, widely applicable data functionalities. What you mentioned is more of a customized feature, which would require additional resources. Our priority is meeting the needs of the largest user base, but if demand for such features grows, we’ll evaluate their inclusion.

Yi Yi: What are GMGN’s upcoming development priorities? Are there any new features users can look forward to?

Haze: We already have features like chip distribution, wallet tagging, and scatter plots. Going forward, we’ll continue enhancing overall trading stability, speed, and user experience. For example, the highly requested “wallet monitoring” feature will expand from supporting 100 wallets to 500. Additionally, we’ll optimize TG Bot and channel monitoring push notifications. Currently, our push system experiences delays under heavy user load, which is a top priority to resolve.

Our goal is to help users discover information faster, stay updated quicker, and complete transactions more efficiently. The current updates are focused on addressing these core needs.

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