Benji Gogan • • Bitcoin
Gain the information advantage in the BRC20 ecosystem
With the constant growth of the Bitcoin BRC20 ecosystem, and many promising projects choosing to launch their tokens on Bitcoin, there are clearly many opportunities to be capitalised on.
But, in this uncertain and volatile market, staying up to date with the actions of the bigger movers within the ecosystem is essential to maintaining an edge. Our latest block is designed to help you do just that, introducing the BRC20 Transaction Monitor!
In this article I will outline some strategies involving our new block which you can use to gain and maintain the information edge in the BRC-20 ecosystem.
Wallet monitoring strategies
Pick a token
In order to find a wallet to monitor, we need first to know where to look. Here we can use the explorer at Unisat.io, a BRC20 & Ordinal inscription marketplace which conveniently indexes all the BRC20 tokens & key stats for them such as number of holders and transaction count.
Head over to Unisat and order the list by Transaction count (click on the "Transactions" column heading). We're looking for legit projects here, our first clues of a project's legitimacy :
Number of holders
Number of Transactions
From here, create a shortlist and head over to coingecko to do further research.
The finer details of deciding if a token is worth buying hugely exceeds the scope of this article, but here's a few resources for those interested.
Wallets worth watching
OK ! So you've checked out the BRC20 tokens, you've done your research, and picked up a bag of something you like. Which wallets are worth tracking ?
The token deployer's wallet is one that is often taking a look at, as this wallet address is often used by token creators to mint & hold a significant % of the supply. Sometimes the team will use one wallet to deploy, and another wallet to mint or hold the tokens, so it can sometimes take some looking around at transaction histories to identify team wallets.
This can take some effort, but it is definitely worth doing, as it will give you a valuable insight into how a project is organised and provide clues to their longer-term goals.
On Unisat it is very straight forward to view the top wallet addresses holding a specific token.
The top 10 - 50 wallets for a given token will often be comprised of the following actors : exchanges, founders, smart-money investors and early adopters.
It is worth looking at the transaction history for the big holders, and trying to figure out what category they fall into. The most valuable to spot, in my opinion would be the smart-money investors.
A key clue that you have found one of these wallets is that they may interact (mint or transfer) with newly launched or lesser-known tokens, as well as the more established BRC-20 mainstay tokens.
Start tracking wallets now with this recipe
So, are you ready to start tracking wallets ? If so, check out this bot recipe I put together which delivers updates on wallet activity to telegram.
All you need to do is sign up for a free community account and your bot will be up and rolling in under 60 seconds, tirelessly monitoring wallet activity day and night for your benefit !
Looking for more tools to help you profit in the world of BRC 20 ?
Check out my last article : What is the BRC-20 token standard? (and 4 bots to help you profit!)
Thanks for reading !
Did you find this recipe useful? Did you love it or hate it ? Are there any killer features you would love to see us build ?
Come and talk to us on the Boto discord !
Passionate software engineer inspired by the potential of Web3 to transform the world for the better.