End Of The Road For Meme Coins? Solana’s Pump.Fun Sees Massive Decline

As a seasoned analyst with years of experience navigating the volatile world of cryptocurrencies, I have witnessed the birth and death of countless projects, some legitimate, others not so much. The recent decline in interest in Solana meme coins generated by Pump.fun is a stark reminder of the perils that come with unregulated and easy-to-use platforms.


In recent cryptocurrency market surges, discussions have centered around the meme coin ecosystem of Solana, with investors placing wagers on tokens birthed by the meme coin generator Pump.fun. Nevertheless, traders on the Solana platform might be reconsidering their choices, as data from the analytics platform Dune suggests a decreasing enthusiasm towards these meme coins.

Pump.fun Sees Massive Decline

According to Dune Analytics, there’s been a substantial drop in the weekly creation of new addresses on the Pump.fun platform, suggesting waning interest in meme coins generated there. Last week ending August 12, Pump.fun reported only 33,333 new accounts, a stark decrease compared to the previous week when it saw 212,699 new accounts.

End Of The Road For Meme Coins? Solana’s Pump.Fun Sees Massive Decline

Over the past few weeks, the number of new weekly accounts created on our platform has decreased significantly compared to June 17th, where we reached a high of 349,032 new accounts. This drop may be due to several factors. For instance, there’s been considerable criticism towards our meme coin generator for facilitating scam activities like pump-and-dump schemes.

One simple rephrasing of your text could be: “For as little as $2, individuals can introduce their own meme coins via Pump.fun, an action that seems to have contributed significantly to a rise in ‘rug pulls.’ This is a tactic where token developers quickly sell off all their holdings to traders, while draining the liquidity from the coin. Furthermore, the user-friendly process of creating a meme coin on Pump.fun has resulted in an overcrowded Solana meme coin market.”

Due to this development, trading meme coins on the Solana network has become less rewarding and more risky, causing traders to lose interest in Pump.fun and ultimately, Solana’s meme coins. Crypto expert Adam recently pointed out that Pump.fun resembles a “bloodbath” for meme coin enthusiasts.

On a recent post from Adam, he pointed out that out of the 16,357 meme tokens released on Pump.fun on August 10th, just 175 managed to reach Raydium (a decentralized exchange). This implies that only around 0.12% of the meme coins launched that day on Pump ended up in Raydium, a place where these tokens gain more exposure and have the potential for new record highs. In terms of trading, it suggests that your chances of making substantial profits from coins introduced on this platform are minimal, at just 0.12%.

Pump.fun Needs To Do Better

As an analyst, I’ve observed a persistent demand within the crypto community for Pump.fun to introduce measures aimed at minimizing the high number of rugs on their platform. One such suggestion is to potentially elevate the fee required for creating a token through the meme coin generator. This increase could act as a deterrent towards developers who primarily aim to execute pump-and-dump strategies.

Despite repeated demands for an increase in the token creation fee, these requests have fallen on deaf ears. In a recent announcement, Pump.fun revealed that creators of new coins will be rewarded with 0.5 SOL once their coin finishes the bonding curve and transitions to Raydium.

It is worth mentioning that the meme coin launchpad has continued to generate millions of dollars in revenue, even at the expense of meme coin traders. Data from Dune Analytics shows that Pump.fun has a total revenue of $90 million. In May, Ex-employee Jarett Dunn mentioned how the platform has “inadvertently hurt people for a long time,” as he drained almost $2 million from Pump.fun and distributed it to random wallet addresses. 

End Of The Road For Meme Coins? Solana’s Pump.Fun Sees Massive Decline

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2024-08-13 23:41