Pump.fun Achieves $100M Revenue in Record Time; Raises Exploitation Concerns

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Solana-based token launchpad Pump.fun scored $100M in revenue in just seven months – a record-breaking time for the crypto sector. 

Initial gains were driven by the launchpad’s meme coin creation – the platform launched 500K+ meme tokens in just one month. 

Despite the initial surge, a sudden decline in daily revenue fees and the offering of free token creation have caused investor exploitation and market manipulation fears. This raises concerns about its future trajectory. 

Let’s explore Pump.fun’s current status and initiatives (albeit not without backlash) in the hope of staying on top of current developments. 

Pump.fun’s Daily Revenue Fee Dropped by 81.84% in 24 Hours

Pump.fun’s total revenue is now 686,473 $SOL (~$92M at the time of writing).

However, its daily revenue fee plummeted from 35,076 $SOL (~4.72M) to 6,375 $SOL (~$857K) in 24 hours on August 12.

The launchpad’s daily revenue fees have not improved since. They’re currently 589 $SOL (~$79K), a 98.33% decline since Pump.fun’s peak volume in August. 

Despite the platform’s impressive total revenue, its sustained drop in daily revenue fees suggests dwindling user activity and a dire need for strategic adjustments. 

Are Pump.fun’s Free Token Launches Enough? 

Following the drop, Pump.fun now offers free token launches and 0.5 $SOL (~$80) to successful coin creators. 

Today we’re introducing 2 HUGE changes to the pump fun mechanism (in beta)

1) Coin creation is FREE

2) Coin creators receive 0.5 SOL (~$80) when their coin completes its bonding curve

How does it work?

1) Instead of the creator having to pay ~$2 for coin creation, this cost… pic.twitter.com/Zp7DCJQoya

— pump.fun (@pumpdotfun) August 9, 2024

The launchpad’s founder, Sapijiju, claims the now-free coin creation will offer more valuable and engaging trading opportunities through more coins and content. 

In addition, he argues that the decrease in coin launches is not the reason behind the incentive.

However, this initiative has faced backlash. One X user suggests that filtering the number of tokens launched would be more beneficial because the only people who will win are those creating and dumping tokens for a quick profit. 

You need to find a way to curate the amount of token currently created on your platform.

Vast majority is agreeing that this is too much, the only people making money right now are the dude perma creating token & dumping for 200$.

A major event as trump & musk speaking, or…

— Phila (@0xPhila) August 13, 2024

Were Pump.fun’s Achievements a Flash in the Pan? 

Pump.fun’s significant drop in daily revenue raises red flags about the launchpad’s long-term stability. As does a recent report that suggests Pump.fun’s digital assets never made it onto the crypto market. 

If they make it into the market, the coins might only benefit those who want to create and dump tokens for fast profits at the expense of others. This could diminish investor trust and boost market volatility. 

Also, the debut of SunPump (a new meme coin launchpad on Tron) might not help Pump.fun’s development path.

Its record-breaking rise, followed by a sudden slowdown and platform concerns, spotlights the meme coin market’s volatile nature. 

Were Pump.fun’s quick achievements just a flash in the pan? We’ll have to wait and see. 

References

• SOL/USD: Convert Solana (SOL) to United States Dollar (USD) (Coinbase) 
• Pump.fun’s Total Revenue and Daily Revenue Fees (Dune Analytics) 
• The Official SunPump Website (SunPump)