CoinMarketCap: Read what our contributors have to say. This content is provided by the community. DYOR!
Why Do Most Memecoins Fail?
Table of Contents
Market Musing-g

Why Do Most Memecoins Fail?

BH NEWS
By BH NEWS
Created 5 months ago, last updated 5 months ago
2 mins read
Why Do Most Memecoins Fail?
You can also read this news on BH NEWS: Why Do Most Memecoins Fail?
Pump.fun, a notable platform in the cryptocurrency arena, has garnered attention with its multitude of memecoins, attracting numerous investors. Yet, a recent study reveals that a staggering 99.998% of these altcoins are financially unsuccessful. Although Pump.fun provides an easy-to-use tool for creating memecoins on the Solana Blockchain, the anticipated promise of “democratized finance” appears to be illusory.

What Is the Success Rate?

To date, over 1.7 million memecoins have been generated on Pump.fun, but a mere 41 have attained a market value of one million dollars over time. This places the platform’s success rate for producing valuable altcoins at an exceptionally low 0.002%.

Even more disheartening, only 15 altcoins created on the platform have surpassed the ten million dollar mark. This figure underscores that the financial prospects offered by Pump.fun are realized by a very limited group, heavily backed by affluent celebrities and investors.

How Are Users Responding?

The platform’s social media posts have sparked significant backlash from users. Many have voiced their grievances, declaring that most memecoins created on Pump.fun are worthless, while the platform profits during the process.

One user encapsulated the community’s sentiment, stating, “It’s no longer fun. 99% of us lost money, while you won anyway.” This widespread dissatisfaction has not only affected user trust but also shaken the broader cryptocurrency community’s confidence in Pump.fun.

Key Takeaways

– The platform’s success rate for profitable memecoins is an abysmal 0.002%.
– Only 15 memecoins have reached valuations over ten million dollars.
– Wealthy celebrities and investors mainly support the few successful altcoins.
– Users report significant financial losses and feel misled by the platform.
– The flood of low-quality memecoins has diminished the overall market value and trust in memecoins.

Despite its user-friendly interface and low barriers to entry, Pump.fun has led to a market saturated with low-value memecoins, resulting in diminished interest and trust. As these altcoins quickly lose value after fleeting popularity, they become casualties of speculative investments and temporary hype.

The post first appeared on BH NEWS: Why Do Most Memecoins Fail?
0 likes
|

Other articles published on Aug 14, 2024

Market Musing-g

MetaMask and Mastercard launch new crypto debit card

MetaMask, Mastercard, and Baanx have teamed up to launch a pilot program for the MetaMask Card, a crypto debit card that lets users spend directly from their MetaMask wallet. This card allows eligi...
By Cryptopolitan_News
5 months ago
3 mins read
DeFi

MetaMask launches a blockchain-based debit card developed with Mastercard

MetaMask, a self-custodial crypto wallet for the Ethereum network, is launching a blockchain-based debit card developed with Mastercard and crypto payments specialist Baanx.
By Optimisus
5 months ago
1 min read
Market Musing-g

Ethereum’s Gas Fees Dive to Lowest Since Mid-2019 Amid Increased Layer 2 Transactions

This decrease follows the Dencun upgrade in March, which introduced blob-based transactions and increased Layer 2 volumes.
By BSCN
5 months ago
3 mins read
Market Musing-g

Nasdaq and BlackRock Propose Options for Spot Ethereum ETF: SEC Decision Expected by April 2025

The proposal, submitted on August 6, aims to provide new investment tools for Ethereum through Nasdaq International Securities Exchange.
By BSCN
5 months ago
3 mins read
Market Musing-g

Shiba Inu Unveils Fiat On-Ramp for Easy BONE, USDC Purchases

Shiba Inu's BONE price jumped 3% to $0.4326, while SHIB rose 2% after the new fiat on-ramp announcement.
By The Crypto Times
5 months ago
2 mins read
Market Musing-g

Solana vs. Sui: Is the ‘Solana Killer’ About to Ignite a Major Rally?

Solana’s dominance in the Layer 1 blockchain space is currently being challenged by SUI Network, especially after SUI boosted its transaction speed to 100,000 transactions per second (TPS). Recent ...
By The Bit Journal
5 months ago
4 mins read

Join the thousands already learning crypto!

Join our free newsletter for daily crypto updates!