According to a report by Cointelegraph, almost all of the cryptocurrencies created on the meme coin issuance platform pump.fun in the Solana ecosystem have failed to be listed. Data from Dune Analytics shows that the success rate of tokens created on pump.fun and deployed to the DeFi protocol Raydium is only 1.41%. Since May, the success rate has consistently ranged between 1.21% and 1.41%.
Pump.fun allows anyone to quickly deploy meme coins by providing a name, code, and JPG image, with costs even lower than $2. Users do not need to provide any startup capital as the liquidity funds are crowdsourced from the community. Once the token’s market value reaches $69,000, $12,000 in liquidity will be automatically deposited into Raydium and LP tokens will be burned.
Adam Cochran, a partner at Cinneamhain Ventures, commented on social media that the “promotion rate” of coins on pump.fun has stagnated at around 1.4% and no new coins have “truly broken” the $20 million fully diluted valuation (FDV) level, indicating that “we are finally going to clear the meme cycle.”
Web3 developer Bread pointed out that out of the 1.58 million tokens created, only 22,300 have actually made it onto Raydium.
However, other commentators believe that this success rate does not reflect the overall meme coin market. Anonymous cryptocurrency commentator Bunjil believes that pump.fun did not ruin meme coins; it only shows how easy it has become to create them with pump.fun.
Although only a few tokens have successfully launched, these tokens have brought substantial fee revenue to pump.fun, surpassing Ethereum multiple times. Data from DeFilLlama shows that pump.fun collected approximately $864,000 in fees within 24 hours, about 57% higher than Ethereum’s $550,000 during the same period.
Pump.fun has sparked a craze among overseas celebrities, including transgender media personality Caitlyn Jenner, American celebrity Iggy Azalea, and A-listers Jason Derulo, who have been using their images to create and promote crypto tokens through pump.fun since May. However, most of these celebrity tokens have experienced significant drops in value. Ethereum founder Vitalik Buterin has publicly criticized this behavior.
Related articles: “What is Pump.fun? How to Master Meme Narratives and Become the Most Profitable Application in the Solana Ecosystem,” “Rampant Issuance of Coins by D-list US Celebrities! Driving Up Prices and Selling Off to Harvest Fans and Retail Investors,” “Ethereum Founder Vitalik Comments on the Chaos of Celebrity Coin Issuance: So Far, I Am Quite Dissatisfied.”