Accompanied by GOAT's market value breaking 300 million in a week, frequent appearances of Pumpfun's hot tokens, the emergence of new Meme shout-out king Murad, and the rise of AI token issuance! However, with AI token issuance being discredited, Devs washing the market and manipulating prices, how will this Meme feast conclude? Who will be the winner?
Participants:
We analyze the participation of three parties in this round of Meme based on the most typical participation of Pumpfun on Solana: retail investors, traders (Devs), and exchanges (DEX & Launchpad).
Retail Investor
Daily new addresses can reach 20k; although the overall market is lukewarm, the number of participants in Meme coins continues to grow.
A total of 3.6 million addresses participated, with many active users, and the overall participation trend is stable with steady growth.
Finally, analyze the addresses based on profit situations, where profits are determined based on all addresses involved in buying and selling tokens launched on the Pump platform, including external buy and sell transactions. Therefore, the total number of addresses is approximately 5 million, and the profit and loss situation of these addresses is judged based on the total PnL of buying and selling their tokens.
From the logarithmic indicators, it can be seen that the profit and loss situation follows a normal distribution, with no absolute winners or losers. In simple terms, there are many PVP scenarios; where someone profits, someone else loses, and the profits and losses are basically balanced. Among them, 2,361,057 wallets are profitable, accounting for 47.8% of the total, while 2,571,368 wallets are at a loss, accounting for 52.2%.
Trader
Due to the tokens being listed on external exchanges, many wild speculators are taking profits and manipulating the market, making it difficult to analyze specifically. Therefore, the traders we discuss here are the Devs, or the issuers.
Here is an analysis based on a typical case:
This Dev has launched 300 Meme tokens in the past 30 days, address: 4DdrfiDHpmx55i4SPssxVzS9ZaKLb8qr45NKY9Er9nNh, and this address earns nearly 100,000 USD monthly.
His strategy is:
After establishing or finding a low-market-value new token already run by a dev, he first makes a large purchase to push the market cap to around 30-40k;
Then, he gradually pulls up with small amounts of funds. Aside from a few following wallets, some unsuspecting small fish might think the market is about to fill up and jump in mindlessly;
When the profits look good and the market is nearly filled, he sells everything to cash out.
He uses about 10,000 USD in principal each time (just enough to reach a market value of over 30k), making a few hundred to a thousand USD each time. Although he only catches small fish each time, this diligent Dev keeps casting new nets and still makes a lot.
Exchange
Exchanges are the most stable and profitable, just looking at Pump alone, not counting its external DEX like Raydium, Pump's revenue over the past few months has already reached 1 million SOL, equivalent to about 150 million USD, with peak daily revenues sometimes reaching 30,000 SOL.
Summary
This article reveals the revelry and gamesmanship in the Meme coin market, focusing on the roles and profits of retail investors, traders, and exchanges.
Retail investors are highly enthusiastic, with over 20,000 new addresses daily and a total of over 3.6 million participating addresses. However, the profit and loss situation among retail investors shows a normal distribution, meaning the market is a 'you win, I lose' PVP game, with winners and losers each accounting for half, lacking absolute advantages.
Traders profit by frequently issuing coins to exploit retail investors. A typical Dev has launched 300 Meme coins within 30 days, attracting retail investors with small operations, then quickly offloading, netting 100,000 USD monthly. Although the profits are smaller, the high frequency of operations ensures the trader always profits.
The biggest winner is the exchange. Taking the Pump platform as an example, it has earned about 150 million USD in just a few months, easily profiting from transaction fees. The exchanges have become the true winners in this Meme feast, consistently profiting regardless of market fluctuations.
In short, during this Meme coin frenzy, retail investors and traders are battling, while the real beneficiaries remain the platforms and exchanges. Thank you for reading!
