In recent years, with the booming development of the cryptocurrency industry, various meme coins have also emerged in this wave. However, on the platform "pump.fun" dedicated to creating meme coins, most of the meme coins cannot be successfully issued and listed.
The latest data shows that the cumulative revenue of Solana meme issuance platform Pump.fun has exceeded 80 million US dollars recently, but only 1.41% of the tokens can be successfully traded on decentralized exchanges (DEX) from the issuance platform. These data make people wonder whether the MEME coin craze is coming to an end? Can ordinary investors still make a fortune through MEME coins?
Pump.fun allows anyone to quickly deploy meme coins by simply providing a name, code, and JPG image, with fees even lower than $2. Users do not need to provide any start-up capital, and liquidity pool funds are all raised from the community. Once the token market value successfully reaches $69,000, $12,000 in liquidity will be automatically deposited into Raydium and the LP tokens will be destroyed.
According to Dune Analytics, only 1.41% of the cryptocurrencies created on "pump.fun" were eventually listed and traded on Solana's decentralized financial protocol Raydium. This ratio has been hovering between 1.21% and 1.41% since May, with a peak of 2.56% on February 16 of this year. That is, the total number of tokens issued by Pump.fun so far is 1.58 million, of which only 22,300 have actually landed on Raydium.
In this regard, venture capital partner Adam Cochran said that the definition of success rate is a market value of $69,000 and a successful listing on a decentralized exchange, and this value has been stagnant at 1.4%. At the same time, no new MEME coin project can break through the fully diluted valuation (FDV, a measure of the total value of a cryptocurrency in full circulation) threshold of $20 million, all of which shows that the bubble of MEME coins has begun to subside.
Some people echoed and emphasized that these memecoin battlefields are definitely not built for beginners, and called on everyone to stay away. Creating MEME coins is definitely not a shortcut to wealth. Instead of investing money in MEME coin projects that are unlikely to succeed, it is better to focus on the cryptocurrency field with more development potential. After all, the success rate of entrepreneurship is only about 10%, while the success rate of MEME coin projects is less than 2%. To get a good return in the cryptocurrency market, long-term focus, sufficient research and prudent decision-making are required.
However, other commentators believe that this success rate is not reflective of the overall memecoin market. Anonymous cryptocurrency commentator Bunjil believes that pump.fun has not ruined memecoins, it just shows how easy pump.fun has made memecoin creation.
Although only a few tokens have been successfully launched, these tokens have brought considerable fee income to pump.fun. It is understood that Pump.fun will charge a 1% transaction fee until the token reaches a certain market value threshold. In some periods, Pump.fun's revenue even exceeded Ethereum (ETH). Data from DeFil Llama shows that pump.fun collected about $864,000 in fees in 24 hours, about 57% higher than Ethereum's $550,000 in the same period.
In addition, pump.fun has also set off a wave of enthusiasm among overseas celebrities, including transgender media personality Caitlyn Jenner, American celebrity Iggy Azalea, A-lister Jason Derulo and many other celebrities, who have used their own images to create and promote crypto tokens through pump.fun since May.
In general, the current MEME craze may be gradually fading, and we may witness the reshuffle and reshaping of the meme coin market. This has undoubtedly cooled down the rising MEME craze, and prompted people to think again about "making a lot of money with one investment" in the crypto world. However, some people insist that meme coins still play an important role in the cryptocurrency ecosystem. In any case, whether there is still room for development in the MEME coin market in the future, industry insiders need to be cautious.
