Solana-Based Launchpad Pump.fun Faces Backlash Despite Rapid Meme Coin Growth

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Pump.fun, a meme coin launchpad on the Solana network, has recently become the center of attention after emerging as the go-to platform for creating meme coins in mere minutes at a low cost. To date, the platform has hosted the creation of over 1.6 million meme coins.

Recently, Pump.fun took to X (formerly known as Twitter) to boast that 10,000 new meme tokens were launched on its platform in just three hours, provocatively asking, “Are you not entertained?”

However, the crypto community’s response seems to diverge sharply from Pump.fun’s expectations. Many community members have expressed their displeasure, accusing Pump.fun of undermining the true essence of meme coins.

One X user, going by the name ANON, wrote, “How is this a good thing anymore? Nobody is having fun anymore besides the pump fun team raking in fees.”

Similar sentiments were echoed by other users, including Cooker, who stated that only the Pump.fun team is benefiting from the project.

Moreover, several users raised concerns that many of the 10,000 meme coin projects launched on Pump.fun could potentially be rug pulls, a type of crypto scam where developers abandon the project after securing investor funds.

One of the most pointed comments came from a user named Scooter, who sarcastically stated that he was “really enjoying scamming everyone.”

Majority of Meme Coin Projects on Pump.fun Fail

An analysis conducted by Newton Einstein revealed that the vast majority, or over 99.99%, of coins launched on Pump.fun failed to achieve significant market value.

The token mechanism on Pump.fun dictates that a meme coin project will be listed on the decentralized exchange (DEX) Raydium once it reaches a market capitalization of $69,000.

However, data shows that less than 0.002%—or approximately 41 out of 1.7 million projects launched on Pump.fun—managed to maintain a market capitalization of $1 million. Furthermore, only about 0.001%, or around 15 projects, have succeeded in reaching a market capitalization of over $10 million.

Despite the community’s criticism, Pump.fun appears unfazed by the backlash. Data from DeFiLlama indicates that Pump.fun remains ranked third behind Ethereum and Aave in terms of daily, weekly, and monthly revenue. On an annual basis, Pump.fun has generated a revenue of $348.5 million.

This resilience in the face of criticism highlights the platform’s profitability, even as the broader community questions the sustainability and ethical implications of its business model. As the debate continues, Pump.fun’s future may depend on its ability to balance rapid growth with the integrity of its offerings in the volatile world of cryptocurrency.

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