Tokens created on Pump.fun, a decentralized exchange (DEX) platform on Solana, have played a significant role in the network’s transactions this year. According to Dune data, Pump.fun tokens have accounted for 62.3% of all DEX transactions on Solana in November, and 42.3% in terms of volume. This platform has become a cornerstone in the Solana ecosystem, enabling anyone to launch a token for a minimal fee.
Some of the most popular tokens to emerge from Pump.fun include PNUT, GOAT, and CHILLGUY. However, the platform has also faced controversy, hosting several morally questionable and illegal tokens. These issues began when a mother promoted her son’s meme coin by shaking her breasts on a livestream, and escalated when a token developer set himself on fire to promote his token.
In response, Pump.fun added livestreaming as a native feature, which has led to several disturbing and potentially illegal content being shared on the platform, resulting in backlash from the industry. As a result, calls for the platform to shut down its livestreaming feature have emerged, with some even predicting that the United States Department of Justice may intervene.
Furthermore, concerns have been raised about the legality of Pump.fun’s operations, as it lacks essential policies and terms of service, which could put the platform in a precarious legal position, especially since it is based in the UK. If Pump.fun were to be shut down, it could have a significant impact on Solana as a network, given that Pump.fun has accounted for a large percentage of Solana DEX transactions in recent months.
This has led some to question the long-term sustainability of Solana’s economy, which relies heavily on the success of Pump.fun.
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<p>The post Pump.fun’s Dominance in Solana DEX Transactions Raises Concerns first appeared on CoinBuzzFeed.</p>
