Nearly 90% of users who traded memecoins released by Pump.fun either lost their investments or made less than $100 in profits.
Several speculative tokens created on the platform have accumulated millions in market value, but profits have been made by less than 10% of investors.
FOMO drives Pump.fun memecoins
Yesterday (20), a 13-year-old boy created a token on Pump.fun, during a live broadcast on social media. To his surprise, the token quickly skyrocketed and he liquidated everything, pocketing US$ 30 thousand. However, as the story went viral, these tokens skyrocketed to almost US$ 4 million.
Stories like this are creating FOMO in the community, or the fear of missing out. As a result, traders are investing in speculative memecoins – which end up being pump-and-dump tokens. However, data from Dune shows that less than 3% of traders have made more than $1,000 in profits from these memecoins.
Distribution of profitable portfolios on Pump.fun. Source: Dune
On-chain analysts noticed several transactions where Pump.fun memecoin traders suffered significant losses due to speculative investments.
In October, one particular trader bought five different memecoins within hours of their price surge. He ended up losing money on each token, as reported by Lookonchain.
Another crypto influencer, ‘Flavius Daniel’, has lost nearly $1 million in memecoins, according to his social media post. However, the crypto community is skeptical about his claim.
Greed kicked in and I only used maximum leverage. I was left with 460 dollars...I think it's time to look for a job, wrote Daniel on X (formerly Twitter)
Regardless, most of Pump.fun’s memecoins have not generated profits for most traders. The platform itself remains significantly profitable. Pump.fun launched earlier this year, allowing anyone to create a memecoin in minutes.
The rise in speculative trading and the popularity of Solana memecoins have benefited the platform to a great extent. Recent reports suggest that Pump.fun is preparing to launch its own native token and a professional trading terminal.
The article 60% of memecoin traders on Pump.fun are at a loss was first seen on BeInCrypto Brasil.