Pump.fun’s Dominance in Solana: a Threat or a Blessing?

Tokens created on Pump.fun, a decentralized platform, have accounted for 62.3% of all decentralized exchange (DEX) transactions on Solana in November, according to data from Dune. In terms of volume, Pump.fun has accounted for 42.3% of the value of tokens that have changed hands. This data supports the argument that Pump.fun has become a cornerstone in the Solana ecosystem.Launched in January, Pump.fun allows anyone to create a token, originally for a few dollars, but later made it free.

This has led to the platform becoming one of the most culturally significant crypto projects, giving rise to some of the year’s biggest meme coins, like PNUT, GOAT, and CHILLGUY. However, the platform has faced criticism due to the presence of controversial, morally questionable, and illegal tokens on the platform.

One issue arose when a user’s mother streamed herself shaking her breasts to promote her son’s meme coin. The situation became more concerning when a developer set himself on fire for his token. In response, Pump.fun introduced livestreaming as a native feature, which has been used by users to perform stunts for money.

However, some of these livestreams have featured disturbing content like threats to animal life, bestiality, and even an apparent suicide. This has led to outrage across the industry, with calls for the platform to shut down the livestreaming feature. Pseudonymous on-chain sleuth WazzCrypto has predicted that the United States Department of Justice will shut down the site.

Crypto lawyer Preston Byrne has claimed that the project is likely breaking the law in terms of social media laws. If Pump.fun is banned, it could have significant consequences for Solana, as the platform has accounted for 62.3% of transactions on the network in November. The reliance on Pump.fun could negatively affect Solana as a network.

Some have expressed concern that an economy built on this platform might not be sustainable in the long term.

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