Author: Nancy, PANews
In the wave of coin issuance led by Solana, Pump.fun is undoubtedly a powerful promoter and a big winner. This small team of only three members has created over 30 million USD in revenue in less than four months. However, while Pump.fun's popularity is soaring, it is also facing widespread questioning due to user interests being compromised and chaotic live broadcasts.
Over 33 million USD captured since launch, with active trading pairs accounting for only single-digit percentage
According to data from The Block Pro, due to the low entry threshold and the surge in demand for creating popular MEME coins, approximately 455,000 tokens were created on the Solana blockchain in May this year, far exceeding the 177,000 tokens on Base and the 39,000 tokens on BNB Chain. Most of the tokens created on Solana are MEME tokens, with part of the credit going to Pump.fun.
Data from Dune shows that as of June 4th, Pump.fun has captured nearly 203,000 SOL since its launch in February, currently worth approximately 33.468 million USD. The number of MEME tokens deployed by Pump.fun exceeds 832,000, accounting for over 70% of Solana's historical token issuance (over 1.1 million), with an average of over 6,300 tokens launched daily.
At the same time, Pump.fun's fees have propelled it into the top ten of cryptocurrency protocols. SolanaFloor pointed out in a tweet at the end of May that in the past 30 days, Pump.fun's monthly income exceeded that of Uniswap Labs, making it the fourth-largest protocol across all blockchain networks at one point. According to the latest data from DefiLlama, in the past 24 hours, Pump.fun ranked eighth with a daily income of 1.01 million USD, surpassing AAVE, PancakeSwap, and Maker, among others.
However, despite the ongoing coin issuance frenzy by Pump.fun, only a few MEME coins are actively traded. According to statistics from GeckoTerminal, in the past 24 hours, among the top 251 MEME token trading pairs, the total number of transactions exceeded 46,000, with a trading volume of approximately 14.793 million USD. In terms of trading volume, there were 5 pairs with over 1 million USD, accounting for only 1.9%; 6 pairs with volumes between 100,000 USD and 1 million USD, accounting for 2.4%; the remaining 240 pairs were all below 100,000 USD, with the lowest being in single digits. In terms of transaction numbers, there were 11 pairs with over 1,000 transactions, accounting for nearly 4.4% of the total, with the majority of transaction numbers between 100 and 900, accounting for 56.9%, and 97 pairs with fewer than 100 transactions. In addition, in terms of token price increases, 17 pairs had an increase of over 10%, accounting for nearly 7.2%, with an average increase of 30.9%, indicating limited wealth creation effects. However, there were only 8 pairs with a decrease of over 10%, with an average decrease of 24.4%, suggesting that most trading pairs had stable prices, meaning "few are sought after."
Risks of being "swallowed" by MEME traffic are highlighted, Pump.fun is facing multiple challenges
Currently, in addition to the proliferation of tokens and poor quality creations, Pump.fun is also facing challenges such as continuously diminishing real user profits, becoming a tool for unscrupulous individuals to make money, and chaotic live broadcasts.
On the one hand, there are increasingly more bot transactions on Solana, squeezing the profit space for ordinary users, such as bot front-running and arbitrage. For example, according to Dune data, as of June 4th, the bot Bonk Bot on Solana had a trading volume of over 6.32 billion USD and over 358,000 users, Pepe Boost had received 3.41 billion USD and 57,000 users, Trojan had about 3.36 billion USD and 23,000 users, and Sol Trading Bot had over 2.05 billion USD and 506,000 users.
On the other hand, Pump.fun's high participation is due to its simplified coin issuance process and lowered threshold, but this model has also attracted many "sickles" to enter the scene. In the past, celebrities such as Caitlyn Jenner, Iggy Azalea, and Davido have also used Pump.fun to issue MEME coins for profit. For example, according to Lookonchain monitoring, Caitlyn Jenner recently issued a total of 12 Meme tokens, with a total profit of 2,381 SOL (405,000 USD). Due to her inability to disguise herself, she transferred all her profits to the same Binance deposit address. The behavior of celebrities issuing coins has also caused dissatisfaction in the market. Cryptocurrency analyst Shiller recently even called on celebrities who are trying to make quick money with MEME coins to stay away from the cryptocurrency field. Historically, celebrity participation in cryptocurrency projects has often led to failure, resulting in zero value. Moreover, some have taken advantage of the situation to steal the X accounts of cryptocurrency KOLs/celebrities for false advertising of MEME coins.
In addition, there is a serious phenomenon of project parties controlling the market. For example, according to Lookonchain monitoring, the developer of the MEME coin $ZACK purchased a large amount of $ZACK tokens on Pump.fun at a very low price. According to statistics, 20 of the top 25 holders are wallets related to the developers, holding a total of 3.9366 billion $ZACK, accounting for 41.3% of the supply, worth over 33 million USD. The purchase cost was only 29.17 SOL (about 4,400 USD); African pop star Davido created $DAVIDO on Pump.fun and spent 7 SOL (about 1,190 USD) to purchase 20.3% of the token supply. Within just 11 hours of the launch of $DAVIDO, Davido made a profit of 2,783 SOL (about 47.3 million USD), with unrealized profits reaching 207,000 USD at one point.
With the recent addition of live streaming functionality on Pump.fun, it has attracted a large number of users to participate. Some users have expressed that "it took 10 days to attract 300 live viewers on other social platforms, but it took only 10 minutes on Pump.fun to attract over 400 viewers and add my tokens to Raydium. Bullish." However, in addition to using methods such as live sleeping and live pets to attract investors, due to the lack of regulation and low costs of violations, some have resorted to extreme behaviors and borderline activities to attract attention and traffic, leading to chaotic situations. For example, a Solana developer suffered third-degree burns due to extreme behavior during a live broadcast to promote their Meme coin, and there have even been cases of MEME issuers live streaming explicit and vulgar content to attract retail investors.
From this perspective, as a "playground" for MEME issuance, Pump.fun is not only enjoying the high income and user volume brought by the MEME craze but also facing the risk of being "swallowed" by traffic.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
