Pump.fun is a fairly hot meme coin issuance platform on Solana. However, recently, there has been much information suggesting that their development team has made huge profits from meme coin trading, while the majority of users suffer heavy losses.

So what is the real story here?

THE PUMP.FUN TEAM AND SUSPICIOUS TRANSACTIONS

Everything started when a researcher closely examined the trading tutorial video of Pump.fun. Thanks to this, they discovered transactions related to the development team. For example:

• Wallet 831qmkeGhfL8…: Transacted 538 tokens, earning approximately 650,000 USD. Some notable tokens are SUPERCYCLE, MOTION, and OIIAOIIA.

• Wallet J2Q2j6kpSg7…: Only traded 4 tokens but made a profit of 1,300,000 USD! The most successful trade was with the token RETARDIO.

• Wallet 7RxsneKY83Q…: This wallet is mainly used to fund other wallets. Few transactions but still worth monitoring in the future.

All of these wallets hold a large amount of meme coins, with a total value of millions of USD. It sounds like the development team is 'taking a bite' before users can get involved.

WHAT ABOUT THE USERS?

Pump.fun charges a 1% transaction fee on each order until the token reaches a market cap of 60,000 USD to be listed on Raydium. But data reveals a harsh reality:

• Over 60% of users are not making a profit.

• Only 3% earn over 1,000 USD, and less than 0.8% profit more than 10 USD.

Ask yourself, who really benefits here?

MEME COIN: A CHANCE TO GET RICH OR A TRAP?

In just one week from 11/8 to 17/8, 181,000 new tokens were created on decentralized exchanges (DEX). Among them, 89% belong to Pump.fun, equivalent to 161,000 tokens. But:

• Only about 1.2% of these tokens meet the listing criteria on Raydium.

• This means that over 98% of tokens are forgotten, and no one wants to trade.

• Every day, thousands of tokens are created, but the actual number that 'survives' is extremely small. Users participate, hoping to make a profit, but ultimately the majority suffer losses.

WHERE IS THE PROFIT FLOWING?

Based on the data, it seems that the huge profits from transaction fees of Pump.fun mainly fall into the hands of the development team. Users, on the other hand, bear significant risks when participating in trading.

Pump.fun is a clear example showing that opportunity always comes with risk, especially in the meme coin world. While some people may make huge profits, the majority of players suffer heavy losses.

Source: MarginATM

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