Research finds less than 0.002% of Pump.fun memecoins succeed

A devastating analysis of viral memecoin platform Pump.fun has found that less than 0.002% of its tokens ever sustain even a modest $1 million market capitalization.

Pump.fun has become a hub for the creation and trading of memecoins and since its launch, has hosted the creation of over 1.6 million memecoins while drawing considerable attention from the crypto community.

However, these latest findings highlight the significant mismatch between the marketing promises of the ostensibly democratized Solana coin generator and the reality of finance, where success is exceedingly rare and disproportionately benefits the wealthy.

The point of Pump.fun is to simplify the complex tasks required to mint, list, and market a memecoin on the Solana blockchain. Despite its success at democratizing access to this suite of tools, it hasn’t democratized any aspect of finance or investing.

Indeed, the vast majority — over 99.99% — of these coins fail to achieve any meaningful market value.

According to a new analysis, only 41 out of the 1.7 million memecoins launched on Pump.fun have maintained a market capitalization of over $1 million for several weeks. This represents a mere 0.002% of all tokens created on the platform.

Read more: Pump.fun update means memecoin devs can now livestream their ass

Worse, only 15 tokens rallied past $10 million. The number is so small that it is almost exclusively controlled by wealthy celebrities like Caitlyn Jenner and other wealthy investors.

Pump.fun users finally see hard research

After Pump.fun’s social media account posted a brazen message referencing the carnage of dead coins its platform created, complaints from users poured in.

“It’s not fun anymore,” said one user. “99% of people lost money. Either way, you made money,” observed another. “The only people winning here are you guys and the scammers,” another complained.

In perhaps the most apt comment, someone simply noted the financial reality of promoting a worthless meme to suckers: “I had a great time RUGGING everyone.”

In a tone-deaf announcement, Justin Sun decided that today would somehow be the perfect time to launch a Tron blockchain-based memecoin generator to compete with Pump.fun.

Unlimited supply and limited demand

The memecoin market is known for its rapid turnover. Many coins experience brief periods of popularity followed by sharp declines, often driven by speculative investments and fleeting hype.

Pump.fun has faced criticism for contributing to this volatile landscape. The platform’s user-friendly interface and low entry barriers have led to an influx of low-quality memecoins, diluting a market once dominated by old memes like Dogecoin or Rare Pepes. 

Read more: Pump.fun exploiter doxxed himself then took credit with bizarre tweets

Overall, the findings from Pump.fun only further reiterate the waning fad of the 2024 memecoin craze. With ultra-low fees on blockchains like Solana, it’s trivially easy to launch a new memecoin. With infinite dilution comes near-$0 prices. Pump.fun certainly follows that formula.

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