tl;dr
The meme coin sector is highly challenging, with only 15 out of 1.7 million meme coins maintaining a market cap of over $10 million for multiple weeks on Pump.fun. The platform has faced criticism for its financial success not translating to user benefits. Independent tokens are predicted to perform...
Crypto Community Criticizes Meme Coin Platform Pump.Fun - Pump.Fun Meme Coins The meme coin sector is highly challenging, with only 15 out of 1.7 million meme coins maintaining a market cap of over $10 million for multiple weeks on Pump.fun. The platform has faced criticism for its financial success not translating to user benefits. Independent tokens are predicted to perform better due to less fragmented liquidity environments.
Pump.fun's success rate for meme coins is extremely low, with only 41 sustaining a market cap exceeding $1 million for weeks. The platform's recent policy changes, including free coin launches, have drawn mixed reactions, with concerns about an influx of low-quality coins. Despite criticism, the platform has generated nearly $90 million in revenue but the future viability of meme coins remains uncertain.
The meme coin sector is one of the most challenging markets for achieving sustained success. According to research, out of more than 1.7 million meme coins launched on Pump.fun, only 15 have managed to maintain a market capitalization of over $10 million for multiple weeks. This is a success rate of merely 0.0001%.
CRYPTO COMMUNITY CRITICIZES MEME COIN PLATFORM PUMP.FUN
Pump.fun has turned into a lucrative venture, amassing millions in revenue. However, this financial success starkly contrasts with the minimal benefits it delivers to its average user. NewtonEinstein, a pseudonymous meme coin analyst, has observed that tokens not affiliated with Pump.fun, particularly those with low burned liquidity pools, perform better due to less fragmented liquidity environments. Consequently, he predicts a forthcoming market shift favoring these independent coins.
Further data showcases the rarity of success within the Pump.fun meme coins. Only 41 meme coins have sustained a market capitalization exceeding $1 million for several weeks, representing just 0.0002% of all tokens launched. Moreover, only 141 of these tokens, or 0.008%, appear on major data aggregator platforms like CoinGecko. This highlights the immense difficulty of gaining visibility in such a saturated market.
“Pump.fun killed meme coins,” crypto trader Ran Neuner said.
PUMP FUN REVENUE
Describing the platform, MrPunk.eth, a vocal critic, labels Pump.fun as a “slaughterhouse” for investors’ hopes. Over the last 24 hours alone, more than 16,357 tokens were launched, yet only 175 reached the decentralized exchange Raydium.
Adding fuel to the fire, Pump.fun recently implemented a policy change. The platform now allows users to launch their meme coins for free, shifting from the previous requirement of a nominal $2 fee per coin, which is now charged to the first buyer instead.
This strategic move aims to remove financial barriers for creators and includes a reward mechanism where developers receive 0.5 Solana (SOL) once their coin completes its bonding curve. Pump.fun claims that these changes are part of a beta test of the “pump fun mechanism,” which also features a reduced migration fee of 1.5 SOL. The objective is to encourage developers to fully integrate their coins into the market, regardless of their ongoing investment.
“Our thesis is that the more coins/content that is created, the higher the likelihood that there will be something worth consuming and fun to trade for our customers. To everyone stressing oversaturation or blaming increased coin launches – you are actually blaming the wrong thing. The way we fix this is by working on discovery. By doing that, we can remove the problems of bad actors, duplicate coins, bump bots—literally everything that is causing problems on Pump for you guys right now,” Sapijiju said.
More about Emeren Group Ltd
Emeren Group Ltd is a company that develops, builds, operates, and sells solar energy projects. The company is headquartered in Stamford, Connecticut.
Sector: MANUFACTURING
Industry: SEMICONDUCTORS & RELATED DEVICES
Market Cap: 77345000
Dividend Yield: None
EPS: -0.68
PE Ratio: 1.918
Profit Margin: -0.127
Revenue: 106582000
Price to Book: 4.38
Price to Sales: 3.42
ROE: 0.148