According to a report by Dune Analytics, Solana$SOL
Earning money from memecoins on the blockchain is like winning the lottery.
Memecoins continue to grow rapidly in popularity in the crypto market. New investors are turning to memecoins to make big profits, and the Solana blockchain has become one of the preferred platforms for these coins. Pump.fun, in particular, has attracted great attention because it makes creating memecoins fast and easy.
However, Dune Analytics stated that the excessive interest in memecoins was counterproductive for most investors, contrary to expectations. According to the report, 60 percent of memecoin investments resulted in losses, while 4.7 percent did not make any profit. This shows that making big profits from memecoins is as difficult as winning the lottery.
Hidden Risks in Memecoins
As investors make high-risk trades, the truth that “the house always wins” has shown itself once again. Memecoin creation platform Pump.fun made over $100 million in profits during the last memecoin bull run.
According to a report by Dune Analytics, 24 percent of memecoin investors earned less than $100. The report, based on wallet analysis, revealed that only 11.2 percent of memecoin investors earned more than $100. While the earnings shared on social media do not reflect the truth, only 3 percent of memecoin traders earned more than $1,000. The rate of investors who earned $10,000 or more, which can be considered a "jackpot," is only 0.5 percent.
The report included the following statements:
“In other words, 90 percent of investors either lost money or made less than $100. That’s not even enough money for dinner, let alone life-changing.”
According to the report, the main reason for losses in memecoins is price fluctuations. Memecoins can rise rapidly one day and fall rapidly the next, and investors often turn to tokens that have reached their peaks in anticipation of further increases.
The report also states that most memecoins are a Ponzi scheme created for quick profit.