Editor | Wu Says Blockchain

Recently, the well-known grid trader HAZE was dubbed the "Dumbass Indicator" after losing $350,000 trading meme coins. In this podcast, we talked with him about the process of trading memes and the professional meme on-chain tool GMGN that he co-founded. With the meme market booming, GMGN, an internally developed product, has become a hot project with impressive daily revenue. Whether GMGN will create a "Dumbass Index" based on HAZE's experience and its future development plans is also a key topic of this podcast.

According to @adam_tehc's Dune data dashboard, the on-chain MEME trading tool GMGN reached its current peak trading volume on November 17, with a single-day trading volume of $72 million, second only to PHOTON ($330 million) and surpassing BULLX ($67 million). This product line ranks second, with a daily fee income of $710,000 and daily users of 25,000.

Please note that the content of this article reflects the personal views of the interviewee and does not represent Wu Says' views. Wu Says does not endorse any tokens or projects, and readers are advised to strictly comply with local laws and regulations. On-chain tools carry significant security risks, and readers should use them with caution.

Why is HAZE Called the Memecoin "Dumbass"?

Colin: Hello everyone, welcome to this episode of our podcast, featuring our familiar friend HAZE. He has recently gained some attention on Twitter, and today we have a more relaxed topic. HAZE, can you start by explaining why you are referred to as the "Dumbass Indicator" in the Memecoin trading scene?

HAZE: Hello everyone, I am HAZE, an advisor for the GMGN project. The term "Dumbass" is quite simple; it refers to constantly trading low-quality coins on-chain, with both large and small funds involved. However, I believe that to break the conventional mindset, one must pay tuition fees. If you approach Memecoins with traditional secondary market thinking or value coin investment strategies, you will likely end up with a lot of losses. Ultimately, the tuition fees you owe will all go to the on-chain, becoming liquidity for various low-quality coin traders. That's why I lost $350,000. But this account was initially used for trading low-quality coins; it's a typical "tuition account." Recently, I have been making money again. If you aren't making money now, then you really are a dumbass, haha.

The Origin and Naming of GMGN Product

Colin: I remember when we talked before, Memecoins weren't very popular yet, and you had already started working on this product, right? Can you tell me about the history of this product?

HAZE: That's right. Last year, I was quite interested in new products, and my entire investment mindset is product-driven. During the DeFi period, I was investing quite successfully, but this year, value coins have not performed well. So, I was always looking for new narratives. Initially, I came across the product UniBot, which solved the transaction speed issue for users on the Ethereum chain, allowing users to access early costs for some projects. I thought this product addressed some essential needs of users and had a good business model. However, after experiencing it, I felt that TG Bot products were not suitable for mass usage in terms of experience and feel.

So, I was thinking, can we create a product with a great user experience that allows everyone to quickly engage with projects while making the entire visualization and experience data intuitive and smooth? In July of last year, there was an independent team capable of doing this, and they asked me what the product should be named. I said, let's call it GMGN.

Regarding naming, I believe a good name is half the success. GMGN itself is a crypto-native term within the on-chain community. I wanted to use some vocabulary originating from community language to name this product. I think GMGN is a friendly, catchy, and simple name. When people were playing with NFTs, they often used greetings like GM (Good Morning) and GN (Good Night). So, we hope this product provides an excellent user experience for community users and is friendly and approachable, which is why we named it GMGN. Our slogan at the time was: GMGN, Degen every day.

This is a very native slogan, hoping everyone can open GMGN every day, trade on-chain, and make money. The product's positioning and name came from this idea.

Migration from Ethereum to Solana, "Mouse Warehouse" Feature Explodes

Colin: Since last year, how has your development progressed?

HAZE: Initially, we started on the Ethereum chain because I was confident in Ethereum's cycle. At that time, new Memecoins like MOG and BITCOIN (HarryPotterObamaSonic10Inu) were emerging. I thought, could we do this based on the Ethereum chain? However, during the process, I found contradictions in user sentiment, asset issuance effects, and transaction speed on the Ethereum chain. Originally, we aimed for quick entry and exit with high risk and high returns, but the trading experience was not smooth, which was problematic. So, we began considering whether we needed to switch chains. Our target chain options included Blur's Blast, Coinbase's Base, and Solana.

In January, a wave of excitement around Solana emerged. After observing the trend, I felt that choosing Solana was more appropriate because it is more mature and has been around longer than other chains. After team discussions, we decided to prioritize Solana while keeping Blast and Base as alternatives and fully supporting a multi-chain model. Thus, we entered Solana. However, during the BOME wave in March, we didn't benefit much because our initial layout was still on Ethereum and we hadn't fully deployed to Solana in time.

Later, around April and May, after GMGN launched, I promoted it on Twitter, and users provided positive feedback about the dashboard feature. Users could continuously explore smart money addresses, analyze the operations of large holders, and conduct address assessments and data analysis. During this stage, we gradually accumulated some seed users. With seed users, the product's demand updates and iterations became more aligned with actual user needs.

What truly made GMGN explode in popularity was the "Mouse Warehouse" feature. This feature was inspired by user feedback and our intuitive feelings. Given the transparency of on-chain asset data, we thought we should better utilize this transparency. So, we launched the mouse warehouse labeling feature. For example, when users are interested in a project, they are most concerned about whether there is a mouse warehouse. After adding this feature, we could clearly label which projects had mouse warehouses.

In April and May of this year, after the "Mouse Warehouse" feature went live, it further propelled explosive growth based on the already good reputation of finding smart money. Many users began discussing GMGN's mouse warehouse data in the community, such as how many mouse warehouse addresses a project had. This discussion quickly increased GMGN's popularity.

The influx of more users also made our previous smart money address feature more popular. We clearly labeled the address data and even matched some information from Twitter. Users could also follow and add notes to addresses.

Many users started writing tutorials, such as "I found a smart money address that made this much money," and shared how to use GMGN for data mining. When this content was posted on Twitter, the response was unexpectedly good. As a result, more and more creators began producing content based on GMGN's features. Whether in Chinese or English, many high-traffic posts on Twitter now utilize GMGN's dashboard feature. At this stage, GMGN's popularity truly exploded.

Recently, as the Memecoin market has gradually heated up, more people have been recommending GMGN. In the past few days, GMGN's servers have crashed six times within four days.

Colin: So, there were days when the servers were down continuously?

HAZE: Haha, yes, yes. The server traffic surged, and everyone had a high demand for using GMGN for buying and selling Memecoins. At that time, our development team basically didn't sleep and was working overtime to expand capacity, but we still couldn't keep up with the speed at which users were rushing in. Thus, the servers were overwhelmed six times in just four days.

This was completely unexpected. Based on our operational experience, we had already implemented a lot of redundancy in traffic data. We can only say that the heat of the Memecoin market far exceeded our expectations, and it also proved everyone's recognition of the GMGN product. We also want to thank all the users of GMGN; it is your support that led to this result. Of course, we will continue to work hard to optimize the servers.

Colin: What is the current growth trend of users? Are there any significant growth milestones?

HAZE: Overall data can be queried on-chain. Our data from the past two weeks shows that trading volume has surged by 600%.

Colin: What is the current size of the GMGN team? How many people are there?

HAZE: About 30 people.

Reviewing Security Incidents on Other Platforms and Optimizing Security Solutions

Colin: Recently, a certain product had a security incident. What improvements will you make regarding security?

HAZE: There has been a lot of discussion about a recent security incident involving a meme product, with various analyses and evidence surfacing on Twitter. From the current information, it appears that they used plaintext transmission for private key transfers, which essentially shows a lack of any security protection. Additionally, from the leaked theft process, funds were transferred one-to-one from user addresses to hacker addresses, indicating that the server was likely compromised. Because the private keys were in plaintext, once the server was breached, the users' private keys were fully exposed, allowing hackers to easily transfer funds.

Regardless of the situation, security is paramount for custodial platforms. For products like TG Bot, managing user private keys is equivalent to managing user funds. If you do this, you need to implement various technical measures to ensure security, such as encrypting private key storage, establishing a comprehensive internal control system, and ensuring strict isolation between business servers and secure storage servers. You also need to use offline solutions and real-time monitoring to ensure platform security.

If funds are indeed stolen, the first step is to quickly identify the problem and stop losses at sensitive nodes. If the scale of theft is small, the platform can quickly compensate users with its own revenue. Since there is no 100% secure system, the key lies in the ability to respond quickly and compensate users. These measures can help the platform achieve higher security standards.

Our team has always placed great emphasis on security, establishing a complete professional security team. We have experienced the waves of the internet, traded coins, and witnessed large capital flows, fully aware of the "dark forest rule" in the blockchain industry. We also understand that platform security is the most fundamental guarantee.

GMGN offers two user experience modes. One is the TG Bot mode, where users' private keys are hosted on the server, catering to the strategy and speed needs of advanced users. The other mode allows users to connect directly to the GMGN website for trading interactions through wallet plugins like Phantom or MetaMask, requiring user authorization for each operation, which is relatively safer.

We have invested significant effort in both the front-end and back-end to continuously optimize security mechanisms. Based on the recent security issues of a certain product, we will further learn from the lessons and fill in the gaps. We will adopt a more cautious approach to enhance the overall security of the platform.

Future Development Strategy: Continuous Engagement with Stable Services and Hot Narratives

Colin: Have you conducted any statistics on your market share? What is the approximate ratio?

HAZE: In terms of overall market share, we should be in a relatively leading position globally. Our main competitor is Photon, which has a clear first-mover advantage on Solana. The BOME wave benefited the most from this.

Colin: What are your plans for future products and development strategies?

HAZE: Our product philosophy is quite simple: first, ensure that the service is stable enough; second, pursue a faster and more extreme operational experience; third, carefully record user requests and continuously update based on the urgency of those needs. Our goal is to make the user experience smoother and smoother, and that’s basically the idea.

Colin: Are you worried about the decline in popularity of Memecoins? Or, after the hype passes, will there be issues with the long-term viability of your product?

HAZE: I think GMGN initially entered the Memecoin track, but its essence is as an on-chain product. Its positioning is about how to stay close to on-chain hotspots and major trends, providing users with good trading opportunities and helping them seize on-chain benefits. This is the core positioning of GMGN. So, even if Memecoins gradually cool down or lose their current momentum, our key is to determine what the next narrative hotspot is, and the team will consider how to quickly engage with it.

We are not solely focused on Memecoins; they are a part of GMGN and currently the main part, but certainly not the only part. I believe that in the blockchain world, hotspots switch very quickly, and innovation happens rapidly. Therefore, we cannot be biased or stagnant. We need to try more, explore more, and find good entry points. If we can solve users' pain points, we will engage and execute. At the same time, we will continuously correct and adjust our understanding.

If we remain immersed in our current comfort zone without breaking it, regardless of our platform position, we may be surpassed over time.

Development Details: "Dumbass Wallet," Niche Tracks, "Conspiracy Groups," and Trading Experience

Colin: Understood, OK. Next, we have two friends joining the discussion, one is defioasis and the other is Yiyi. They have in-depth observations and practical experience in the Memecoin field and can further discuss some issues with you.

defioasis: I have a few questions. The first is about the "Dumbass Wallet" indicator. Is it possible to launch a tool similar to reverse smart money, such as labeling wallets with extremely low win rates that buy at the peak?

HAZE: I think this is possible. If we have time, we can label these wallets as having extremely low win rates. First, include me in that list, haha.

Colin: This idea seems quite interesting, haha.

HAZE: Yes, many users who chase highs often buy at the peak, and then the price starts to drop. So this could serve as an indicator to assist trading decisions.

defioasis: Right, this could be a good selling indicator. The second question is, Memecoin is a large track, which also has many niche tracks, such as the recent AI Memecoins and DeSci. Is it possible to optimize the sector classification and sector rotation functions in GMGN so that users can easily see the hotspots?

HAZE: The demand for sector classification has indeed been raised before. Some users are not trading low-quality coins every day; they may have heard that a certain sector is hot and want to come in and buy some. At this time, providing an intuitive display of market cap and price would be very helpful. We will consider adding these classifications in future functional updates.

defioasis: One more question, GMGN has two entry points, one is TG Bot and the other is the plugin wallet. Have you statistically analyzed which entry point has a higher user volume and more trading volume?

HAZE: We haven't conducted such data statistics recently.

Yiyi: I have two questions. First, the community is currently particularly interested in two things besides smart money: discovering "conspiracy groups" and guessing who will be listed on Binance. GMGN has strong data analysis capabilities, especially in smart money. Do you have plans to further explore these associated addresses, such as labeling which addresses may be involved in conspiratorial behavior?

HAZE: We have partially implemented this. We initially launched the mouse warehouse feature and later added the "fish" labeling. We will label suspected conspiracy wallets as "red fish," with labeling logic including operations on multiple wallets at the same time and consistent fund transfer behaviors. For example, I recently tested an address, and the data clearly showed that this address was a distribution address, labeled as "red fish," with an additional red exclamation mark prompt.

HAZE: Additionally, we have wallet distribution analysis features, such as the distribution behavior of DEV wallets being labeled with a "sniper" icon. For the conspiracy groups mentioned by users, we will continue to identify and determine them through on-chain data, but we will try to avoid subjective labeling.

Yiyi: Understood. My second question is, can the K-line tool be combined with on-chain data? For example, if I define a time window, I want to know who was driving the price up and who was making money during a major upward trend. Could this be a development direction for GMGN?

HAZE: Currently, we are more inclined to provide data functions that are universally applicable across major platforms. The demand you mentioned falls under customized features, which require more resource investment. Our primary task right now is to meet the most widespread needs, but in the future, if more users propose similar demands, we will evaluate and consider adding these features.

Yiyi: What will be the focus of GMGN's upcoming iterations? Will there be other exciting features launched?

HAZE: We already have chip distribution features, as well as wallet labeling and dispersion map functions. The future focus will still be on enhancing the overall stability, speed, and experience of trading. For example, the highly requested "wallet monitoring" feature will expand from supporting 100 wallets to 500. Additionally, the monitoring and push notification needs for TG Bot and channels will also be optimized. Currently, GMGN's push function experiences delays when user volume is too high, and we will prioritize resolving this issue.

Our goal is to enable users to discover information faster, stay updated on dynamics quicker, and complete transactions more swiftly. The current updates mainly focus on these core needs.

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