Trench dictionary

Price × circulating supply.

A snapshot of how the market currently sizes a token. It is not the amount of money invested, and it sets no ceiling or floor on price.

Example: 1,000,000,000 supply at $0.0004 = a $400,000 market cap.

Market cap if every token existed and circulated.

FDV includes supply that hasn't been released yet. A large gap between cap and FDV means future supply could arrive and dilute current holders.

Example: Cap $400k with FDV $4M means 90% of the supply is still waiting in the wings.

The pooled assets you actually trade against.

Liquidity decides how much your own order moves the price. Thin liquidity means bad fills in both directions and easier manipulation.

Example: A $500k-cap token with $4k liquidity is very hard to exit without moving price hard.

The gap between expected and executed price.

Slippage grows with order size relative to liquidity. Setting a very high tolerance is how people get sandwiched.

Example: You expect $0.0010 but fill at $0.0012 — 20% slippage.

A formula that prices a token as supply sells.

Instead of an order book, price follows a defined curve: each purchase moves price up along that curve, each sale moves it back down.

Example: Early curve buyers pay less than later ones — by design, not by luck.

Moving from a launch curve to an open market pool.

When a platform's threshold is met, liquidity moves into a normal pool and price is set by ordinary supply and demand. Thresholds, fees and mechanics differ by platform and change over time — always check current docs.

Example: After migration, the same token trades against a standard liquidity pool.

The wallet that created the token.

Its holdings and behaviour tell you about incentives. Selling most of it early reduces alignment; huge retained supply concentrates control.

Example: A fictional dev selling 80% in hour one is a signal worth writing down.

How much supply the biggest wallets control.

High concentration means a few wallets can move price whenever they choose. Always exclude the liquidity pool from that count.

Example: Top 10 non-pool wallets holding 64% is very concentrated.

Multiple wallets acting as one entity.

Wallets funded by the same source and buying in the same block simulate a crowd. Tracing funding sources reveals them.

Example: Eight fresh wallets, one funder, same block — one participant wearing eight hats.

A bot or user buying within the first moments of a launch.

Snipers get an entry ordinary users can't match. Heavy sniper presence means early supply sits with fast, short-term holders.

Example: A fictional launch where 40% of supply was bought in the first block.

Insiders remove value, leaving holders unable to exit meaningfully.

Usually done by pulling liquidity or dumping concentrated supply. Checking who controls the pool is the main defence.

Example: LP controlled by one wallet is the precondition for the most common version.

A token you can buy but effectively cannot sell.

Created through retained authorities or transfer restrictions. Checking that mint and freeze authorities are revoked reduces this risk.

Example: A live freeze authority can block holder transfers entirely.

How much traded over a period.

Volume is the closest thing to objective confirmation of participation — but on thin tokens it can be inflated by wallets trading with themselves.

Example: Huge volume with a flat holder count suggests wash trading.

A zone where declines have repeatedly been absorbed.

Read it as a zone, not a line. It matters because participants remember it, and it fails when price closes decisively below.

Example: Three bounces from the same area define a support zone.

A zone where rallies have repeatedly stalled.

The mirror of support. Once broken and held, traders often watch it as support from below.

Example: Two failed pushes into the same high mark resistance.

Price closing beyond a defined range boundary.

A wick through a level is not a breakout. Closes plus participation carry more information, and retests provide evidence.

Example: A close above the range high on above-average volume.

The pre-defined point where your idea is wrong.

Deciding this before acting turns panic into a pre-made decision. Without it, you end up negotiating with yourself mid-move.

Example: “If it closes below the neckline, my long thesis is done.”

Controlling exposure instead of predicting outcomes.

Position sizing, defined invalidation, and the willingness to not participate. It's the part of the process you fully control.

Example: Sizing so a full loss is annoying rather than life-changing.

The fastest, highest-risk corner of new token launches.

Extremely short time horizons, thin liquidity, and heavy insider advantage. Survivable only with strict habits — and opting out is always valid.

Example: Brand-new tokens minutes after creation.