Metamask Co-Founder’s Meme Coin Test Reveals Web3 Trust Issues

The blockchain landscape continues to spotlight the challenges and opportunities within the Web3 ecosystem. From Dan Finlay’s hands-on experiment with meme coins to explore consent and trust, to the $1.5 billion valuation of Solana-based Pump.fun on SecondLane, these developments shed some light on the complex interplay between hype, user expectations, and sustainable growth in the cryptocurrency space. 

Dan Finlay’s Meme Coin Experiment Highlights Consent and Trust Issues in Web3

Dan Finlay, co-founder of MetaMask, has conducted a bold experiment in the world of meme coins, minting two tokens to investigate consent and trust in the Web3 ecosystem. Dubbed “Consent” on Ethereum and “I Don’t Consent” on Solana, the tokens served as a hands-on exploration of how these principles interact with the hype-driven world of cryptocurrencies. Finlay’s findings are as thought-provoking as they are unsettling, shedding light on broader issues within blockchain, artificial intelligence, and user expectations.

Finlay’s experiment began as an exploration of how consent functions—or fails—in the meme coin ecosystem. Using Ethereum’s Clanker bot and Solana’s Pump.fun platform, he launched the two tokens, only to watch the situation quickly spiral out of control. The tokens experienced rapid trading activity, inflating their value and briefly pushing Finlay’s holdings to over $100,000. However, the lack of structure or purpose for the tokens left participants vulnerable to financial losses and emotional turmoil.

Finlay described his experience as “deeply unpleasant in predictable ways,” focusing on the chaotic nature of the meme coin market. Buyers scrambled to assign meaning to the tokens despite their simplistic design, a phenomenon that Finlay linked to a lack of clear systems for consent and accountability.

The meme coin frenzy attracted not only speculative traders but also backlash. Investors bombarded Finlay with demands for long-term plans and even personal threats. He reflected on the ambiguous nature of consent in this environment, stating:

“The only act of consent that seems unambiguous in this memecoin environment is that the buyers are definitely consenting to put their money into something. But without that thing being well defined, what kind of consent is that, anyway?”

This observation brings attention to a fundamental flaw in the meme coin market: the disconnect between what users expect and what they actually receive. In this high-risk, high-reward landscape, the lack of clarity and purpose often leads to confusion and financial loss.

Finlay’s experiment also ties into a broader debate about consent on digital platforms. Drawing parallels with controversies in artificial intelligence, he referred to instances where public data was used without explicit consent, such as AI training datasets derived from social media platforms like Bluesky. He highlighted the “disconnect between the protocol expectations of consent and the social expectations of consent,” noting that similar issues plague the meme coin space.

This misalignment between technical capabilities and user expectations creates a trust deficit, not just in blockchain but across digital platforms. Finlay’s insights are a call to action for clearer definitions and systems of consent that respect both social and technical norms.

Finlay’s findings also point to the urgent need for better tools and incentives in the meme coin ecosystem. He envisions a system where token issuers can exercise “fine-grained control” over their tokens, allowing them to restrict markets to specific communities or implement structured sale methods. Such measures could reduce volatility, improve user trust, and foster a more ethical trading environment.

He emphasized that these changes are not just ethical imperatives but also practical ones:

“This isn’t an appeal to ethics, this is an appeal to making better products. Your app doesn’t need to become a pool of toxic waste. Your community doesn’t need to be peppered with people issuing personal threats. Your shares don’t have to be diluted by anonymous whales.”

The Intersection of AI, Blockchain, and Consent

As blockchain and artificial intelligence continue to converge, the challenges Finlay highlights become increasingly relevant. Both technologies operate in spaces where transparency and consent are critical but often overlooked. By addressing these issues in the context of meme coins, Finlay’s experiment serves as a microcosm for larger debates about trust, user expectations, and ethical design in digital ecosystems.

Dan Finlay’s meme coin experiment is more than just a cautionary tale—it’s a blueprint for addressing systemic flaws in the Web3 ecosystem. By exposing the chaotic and often harmful dynamics of the meme coin market, he places the spotlight on the need for clearer systems of consent, better infrastructure, and more ethical practices.

Finlay’s message is clear: to build a better Web3, we need tools and systems that prioritize trust, consent, and accountability. The question now is whether the industry is ready to rise to the challenge.

Pump.fun Hits $1.5 Billion FDV on SecondLane as Meme Coin Frenzy Continues

In a related development, the private markets trading platform SecondLane has listed an equity interest in the meme coin protocol Pump.fun, assigning the platform a fully diluted valuation (FDV) of $1.5 billion. 

SecondLane has made a 1% equity stake in Pump.fun available for $15 million on its web app and Telegram channel, where new offerings are regularly announced. This listing has garnered significant attention, as Pump.fun has yet to launch its own native token, a milestone often seen as pivotal in the valuation of blockchain projects.

According to Pitchbook, Pump.fun has previously secured equity investments from notable backers such as Alliance DAO, Big Brain Holdings, and 6th Man Ventures, further solidifying its position as a major player in the Solana ecosystem.

Pump.fun’s valuation is supported by its performance and ambitious plans for growth. In October, the team behind the platform hinted at a future token release and unveiled a new trading terminal called “Pump Advance.” Although no timeline for the token launch has been announced, the anticipation is building within the crypto community.

The platform’s success is evident in its revenue generation. According to DeFiLlama, Pump.fun was the eighth highest-earning blockchain protocol over the past month, generating $86 million in fee revenue. Its cumulative fee revenues have exceeded $225 million, ranking it just below blockchain heavyweights like Circle, the issuer of USD Coin (USDC), and Uniswap, the decentralized exchange (DEX).

Pump.fun’s growth is closely tied to the meme coin trading frenzy that has taken over the Solana blockchain. The platform allows users to launch and trade meme coins with minimal barriers, promising to let anyone “launch a coin that is instantly tradeable for under $2 in one click.” Its personalized “For You” algorithm curates real-time feeds based on user activity, enhancing engagement and trading activity.

However, the platform’s model is not without challenges. Data from Dune Analytics reveals that approximately 98% of prospective meme coins on Pump.fun fail to successfully launch. Despite these figures, the few successful launches have driven significant trading volumes and fee revenues, helping the platform achieve its remarkable valuation.

The meteoric rise of meme coins has divided the cryptocurrency community. According to CoinGecko, the total market capitalization of meme coins has surpassed $122 billion, fueled by venture capital funding and speculative trading.

Supporters, such as Murad Mahmudov, argue that meme coins serve a legitimate purpose in the crypto ecosystem by eliminating the speculative premium often attached to altcoins. Meme coins, they claim, represent a pure and transparent form of market speculation.

Critics, however, see meme coins as a symptom of unchecked speculative mania. Bitcoin advocate Jimmy Song has described them as “a net negative for investors,” likening them to gambling. The high failure rate of meme coins on platforms like Pump.fun lends some weight to these concerns, as many investors are left holding worthless assets.

What’s Next for Pump.fun?

Pump.fun’s future appears promising but uncertain. The planned token release and the launch of the Pump Advance trading terminal could significantly bolster its ecosystem, attracting more users and solidifying its position in the meme coin market. However, the platform must also contend with the broader challenges of the meme coin space, including high volatility, investor skepticism, and regulatory scrutiny.

The platform’s FDV of $1.5 billion signals strong confidence from private market investors, but it also raises questions about sustainability. Whether Pump.fun can maintain its momentum and expand its market share will depend on its ability to deliver innovative features, improve user success rates, and address criticisms of the meme coin phenomenon.

Pump.fun’s listing on SecondLane marks a significant milestone in the meme coin revolution, highlighting both the opportunities and risks inherent in this rapidly growing sector. With its impressive revenue figures and ambitious plans, the platform exemplifies the potential of blockchain innovation to create value in unexpected ways.

As the meme coin market evolves, Pump.fun will remain a focal point for investors, developers, and traders eager to capitalize on the next big trend. Whether it becomes a lasting fixture in the crypto landscape or a flash in the pan will depend on its ability to navigate the complex dynamics of trust, user engagement, and market speculation.