Jason Derulo

Bunni

Generation

Impact

The world of memecoins is known for its high volatility and speculative nature. Recent data from&nbsp;<a style="text-decoration:none" href="https://dune.com/evelyn233/pump-data">Dune Analytics</a> sheds light on a troubling trend within this segment.
According to the data, a staggering 98.6% of memecoins created on the Solana-based platform&nbsp;<a style="text-decoration:none" href="https://bsc.news/post/what-is-pump-fun">Pump[dot]fun</a> never actually launch.&nbsp;
<h2 dir="ltr" id="span-span-platform-overview-and-statistics-span-span">Platform Overview and Statistics</h2>
Pump[dot]fun, launched in January 2024, offers an easy way for users to create and launch memecoins. With fees as low as $2 and a transaction cost of just 0.02 SOL (approximately $3.50), it promises an accessible entry point into the memecoin market.&nbsp;
&nbsp;
Despite its user-friendly approach, the success rate of tokens transitioning from Pump[dot]fun to Solana’s decentralized finance (DeFi) protocol, Raydium, is alarmingly low.
&nbsp;
Data reveals that only 1.41% of tokens from Pump[dot]fun manage to make it onto Raydium. This success rate has been relatively stable, fluctuating between 1.21% and 1.41% since May, with an all-time high of 2.56% recorded in February.&nbsp;
&nbsp;
The stagnation in the 'graduation rate' of coins—those reaching a market cap of $69,000 and being listed on a decentralized exchange (DEX)—further highlights the challenges.
<h2 dir="ltr" id="span-span-celebrity-endorsements-and-market-impact-span-span">Celebrity Endorsements and Market Impact</h2>
The memecoin frenzy has been significantly influenced by celebrity endorsements. High-profile figures like Caitlyn Jenner, Iggy Azalea, and Jason Derulo have launched and promoted their own memecoins on Pump[dot]fun.&nbsp;
&nbsp;
For instance, Jenner’s memecoin (JENNER) reached a market cap of $40 million within 24 hours of its launch, despite initial skepticism about its authenticity.
&nbsp;
Following Jenner’s success, Iggy Azalea’s memecoin (MOTHER) also gained attention but has since experienced a sharp decline in value.
&nbsp;
Other celebrity-linked tokens, such as Davido’s Timeless Davido (DAVIDO) and Rich the Kid’s Rich (RCH), have faced similar issues. The DAVIDO token has been criticized for pre-mining and alleged token dumping, while the RCH token saw its market cap plummet by over 90%.
<h2 id="span-span-revenue-generation-and-platform-performance-span-span">Revenue Generation and Platform Performance</h2>
Despite the high failure rate of tokens, Pump[dot]fun has been financially successful. The platform charges a 1% transaction fee on tokens until they reach a certain market cap, contributing significantly to its revenue.&nbsp;
&nbsp;
On July 29, Pump[dot]fun&nbsp;<a style="text-decoration:none" href="https://defillama.com/fees">generated</a> approximately $864,000 in a 24-hour period, surpassing Ethereum’s $550,000 for the same timeframe.
&nbsp;
This revenue model has proven lucrative, especially given the high volume of memecoin transactions. Pump[dot]fun’s ability to attract users with minimal fees and a promise of fairness has played a key role in its financial success.

Pump.fun's High Failure Rate Revealed: 98.6% of Memecoins Never Launch

Table of Contents

BSCN

Other articles published on Aug 7, 2024

Will MEW, POPCAT & BONK Meme Coins Rally Give 2x Returns?

Siebert and INX enter into Referral Agreement for the Introduction of On-Chain Real World Asset (...

BREAKING: $40,000,000,000 Wealth Manager Invests in Bitcoin via Bitwise ETF – BTC Price to $75,000?

DeFi Protocol Nexera Hacked for $1.5 Million Today

What is Neiro Memecoin?

Arthur Hayes breaks down Bitcoin’s correlation with dollar and yen

Join our free newsletter for daily crypto updates!