Pump.Fun Smashes Revenue Records But Some Users Are Not Happy

Sentiment is shifting on Pump.Fun as the most popular memecoin launchpad rakes in profits while the pile of its failed tokens grows.

Pump.Fun, a platform that allows users to issue tokens with little cash and no technical knowledge, is dominating protocol revenues, earning over $5 million in the past 24 hours, more than the rest of the 20 top earning protocols and blockchains combined, including Ethereum, and a record for the memecoin launchpad.

The record-high daily revenue outpaced its previous all-time high set on June 30, by 10x.

Pump.Fun accumulates trading fees for buy and sell transactions on its platform. Once these tokens reach a market capitalization of around $65,000, the token will “graduate” and see its bonding curve burned to Raydium.

Trump and Elon Space

The surge in revenue was driven by Donald Trump and Elon Musk’s podcast-style Twitter space on Monday. Pump.Fun traders spent the three hour-long event gambling on freshly launched memecoins that alluded to or directly referenced dialogue from the space.

Predictably, 99% of these tokens were rugpulls, with many failing to even break a market capitalization of $15,000 before “developers” would sell their full stack.

Only 38 of the 15,000 tokens launched on Pump.Fun on August 12 reached Raydium, the lowest level since March 20. Meanwhile, Pump.Fun’s revenue is skyrocketing.

Rugpull Workaround

Pump.Fun tokens operate on a bonding curve, meaning that there is no liquidity that can be rugged from the tokens. However, upon launch token creators are given the right to make the first purchase of their token.

Malicious actors will often create a token, buy up a large percentage of the supply, and if other users come in and pump the price higher, the token creator will sell their tokens, crater the token price, and pocket the profit. This happened en masse on Monday evening.

After the Twitter spaces Pump.Fun took to social media to post a meme that read “3 hours. Tens of thousands in the trenches. 10,000 coins. ARE YOU NOT ENTERTAINED!?”.

However, the comment section did not appear to be entertained at all, with the most liked reply from CookerFlips reading “Nobody is entertained but ur team and your pockets”.