- Over 51% of wallets trading on Pump.fun this month lost money.
- A $1 billion token sale is rumored to be in the works, aiming for a $4 billion valuation.
- While wallets are losing money, Pump.fun has generated a massive $700M in revenue.
While much of the altcoin market currently struggles for relevance in a dry liquidity environment, Pump.fun, Solana’s viral meme coin generator, continues to thrive. The platform is fueling a chaotic micro-economy that has, by many accounts, minted fortunes for a select few but resulted in financial ruin for a large number of its users.
Thanks to its simple one-click token creation system, Pump.fun has quickly become one of the most talked-about platforms in the crypto space. But behind all the hype lies a rather troubling trend: the vast majority of traders on the platform are actually losing money.
The Stark Reality: Data Shows Over Half of Pump.fun Traders in the Red
According to recent data shared by crypto analyst Miles Deutscher, more than half of Pump.fun traders are in the red. Out of nearly 330,000 wallets, over 166,000 wallets (51.06%) suffered losses under $500, while another 3,700 wallets lost between $500–$1,000, and 2,642 wallets lost up to $10,000.
Only a minuscule fraction, 5 wallets, realized profits between $50,000 and $100,000, representing just 0.0015% of all users. In contrast, Pump.fun itself has raked in about $700 million in cumulative protocol revenue, according to DefiLlama.
This staggering revenue comes at a time when most legitimate altcoin projects struggle for liquidity or retail interest.
Related: Pump.fun Introduces 50% Revenue Sharing for Solana Meme Coin Creators
Pump.fun Reportedly Preps $1 Billion Token Sale, Drawing Mixed Reactions
Pump.fun is also rumored to be preparing for a $1 billion token sale, reportedly at a $4 billion valuation. The plan includes listings on multiple centralized exchanges and a 10% airdrop to community members, with insiders suggesting a token launch could happen within weeks.
While this has stirred anticipation in crypto circles, it has also drawn criticism. Some see it as yet another cash grab in a market where retail traders are already down bad. The platform’s explosive growth has been blamed for killing altseason, as funds flow into speculative meme plays rather than established mid-cap projects.
Interestingly, a few argue that Pump.fun is simply a transparent reflection of what centralized exchanges have been doing for years, profiting off retail flows.
Related: The Pump.fun Effect: How Instant Meme Coins Defined, Then Damaged Q1
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Source: https://coinedition.com/solanas-pump-fun-booms-but-data-shows-over-half-its-meme-coin-traders-lose-money/