Pump.fun, a platform that allows users to create tokens on the Solana network, is responsible for 62.3% of all decentralized exchange (DEX) transactions on Solana in November, according to Dune data. While the percentage is slightly less in terms of transaction volume, at 42.3%, these figures demonstrate the significant role Pump.fun plays in the Solana ecosystem.
Since its introduction in January, Pump.fun has facilitated the creation of several popular meme coins, such as PNUT, GOAT, and CHILLGUY. However, the platform’s rise to prominence has been marred by controversy, as numerous morally questionable and illegal tokens have appeared on the platform. The controversy began with a mother who performed a controversial livestream to promote her son’s meme coin and escalated when a meme coin developer set himself on fire for his token.
In response, Pump.fun added livestreaming as a native feature, which attracted further attention, including streams featuring animal cruelty, bestiality, and even an apparent suicide. This led to outrage in the industry, with calls for the platform to shut down livestreaming. Crypto lawyer Preston Byrne and on-chain sleuth WazzCrypto both warned that Pump.fun may be breaking the law and could face shutdown by the United States Department of Justice.
Byrne, in particular, pointed out that the platform has no terms of service, no DMCA registration, and no privacy policy, putting its future in a precarious legal position. Pump.fun’s impact on Solana’s network is considerable, as not only have 62.3% of transactions in November come from the platform, but this has been a consistent pattern throughout the year.
While the potential loss of Pump.fun could have a negative effect on Solana, some argue that an economy built on such degenerate content may not survive in the long run.
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<p>The post Pump.fun’s Dominance in Solana’s DEX Ecosystem Raises Concerns first appeared on CoinBuzzFeed.</p>
