Score: 2

Enhancing Meme Token Market Transparency: A Multi-Dimensional Entity-Linked Address Analysis for Liquidity Risk Evaluation

Published: May 22, 2025 | arXiv ID: 2506.05359v1

By: Qiangqiang Liu , Qian Huang , Frank Fan and more

BigTech Affiliations: Stanford University Binance

Potential Business Impact:

Finds hidden money risks in meme coins.

Business Areas:
Text Analytics Data and Analytics, Software

Meme tokens represent a distinctive asset class within the cryptocurrency ecosystem, characterized by high community engagement, significant market volatility, and heightened vulnerability to market manipulation. This paper introduces an innovative approach to assessing liquidity risk in meme token markets using entity-linked address identification techniques. We propose a multi-dimensional method integrating fund flow analysis, behavioral similarity, and anomalous transaction detection to identify related addresses. We develop a comprehensive set of liquidity risk indicators tailored for meme tokens, covering token distribution, trading activity, and liquidity metrics. Empirical analysis of tokens like BabyBonk, NMT, and BonkFork validates our approach, revealing significant disparities between apparent and actual liquidity in meme token markets. The findings of this study provide significant empirical evidence for market participants and regulatory authorities, laying a theoretical foundation for building a more transparent and robust meme token ecosystem.

Country of Origin
🇰🇾 🇺🇸 Cayman Islands, United States

Page Count
8 pages

Category
Quantitative Finance:
Statistical Finance