Almost every coin follows the same five-stage arc. If you can spot which stage a coin is in, you know whether you are early, late, or exit liquidity.
- 1Launch — the coin is created. The first seconds decide everything; this is where snipers and bundlers strike.
- 2Pump — buyers pile in, price climbs, the chart looks exciting. Hype peaks. Most people FOMO in here.
- 3Distribution — insiders and early buyers quietly sell into the hype while still posting bullish messages.
- 4Dump / rug — big holders sell, price collapses, often within minutes. Latecomers hold worthless bags.
- 5Death or graduation — most coins flatline at zero; a rare few build real communities and graduate to a DEX.
lightbulb
The painful truth: by the time a coin "looks safe" because the chart is green and everyone is excited, you are usually in stage 2 or 3 — right when insiders are getting ready to sell to you.