Rock

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Will Smith Inu

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Memecoin

<p class="is-style-lead">Iggy Azalea’s launched her own token on Pump.fun, and over a million others have been created too. But this could be bad news for investors… and the market overall.&nbsp;</p> 
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  <ul>
   <li><a href="#memecoins-for-the-masses" rel="">Memecoins for the masses</a></li>
   <li><a href="#lightning-strikes" rel="">Lightning strikes</a></li>
   <li><a href="#is-pump-fun-sustainable" rel="">Is Pump.fun sustainable?</a></li>
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 </nav>
</div> 
<p>There’s one thing that forever remains impressive about the manic world of <a href="https://crypto.news/tag/cryptocurrency/">crypto</a>: how a new project can pop up and quickly take the world by storm.</p> 
<p>For our latest exhibit, let’s turn our attention to Pump.fun, which basically allows anyone to create their very own <a href="https://crypto.news/tag/memecoin/">memecoin</a>.&nbsp;</p> 
<p>It launched back in January of this year — and figures from DefiLlama suggest the website’s already on track to make $265 million in revenue a year. $265 million!</p> 
<figure class="wp-block-image size-full">
 <picture loading="lazy" decoding="async" class="wp-image-14282456"> 
  <source type="image/webp" srcset="https://crypto.news/app/uploads/2024/07/Screenshot-2024-06-28-at-16.46.17.png.webp"> 
  <img loading="lazy" decoding="async" width="1994" height="782" src="https://crypto.news/app/uploads/2024/07/Screenshot-2024-06-28-at-16.46.17.png" alt="Iggy Azalea launched her coin on Pump.fun. What is it? - 27"> 
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  Pump.fun daily revenues | Source: DefiLlama
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<p>Pump.fun is now regularly pocketing more than $500,000 a day in fees, accelerating to $1.5 million during times of market mania. As of July 2, the project <a href="https://x.com/degeneratenews/status/1808098870351610140?s=61&amp;t=Goh7F7TZjoAVMq_tusVLpw" data-type="link" data-id="https://x.com/degeneratenews/status/1808098870351610140?s=61&amp;t=Goh7F7TZjoAVMq_tusVLpw" target="_blank" rel="">flips</a> ETH in 24-hour revenue: $1.99 m. v $1.95 m.</p> 
<p>And if that wasn’t crazy enough, Dune Analytics data shows it’s been behind the launch of over 1.16 million <a href="https://crypto.news/tag/tokens/">tokens</a> on the <a href="https://crypto.news/tag/solana/">Solana</a> <a href="https://crypto.news/tag/BLOCKCHAIN/">blockchain</a> so far.</p> 
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  <img loading="lazy" decoding="async" width="2380" height="382" src="https://crypto.news/app/uploads/2024/07/1719857874878blob.png" alt="Iggy Azalea launched her coin on Pump.fun. What is it? - 28"> 
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  The tokens rolled out on Pump.fun | Source: Dune Analytics
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</figure> 
<p>But how exactly does Pump.fun work, what’s made it so successful, and is the frenzy sustainable?</p> 
<p> Read more: <a href="https://crypto.news/meme-coins-dominate-2024-over-1800-surge-whats-next/"> What’s next for memecoins? </a> </p> 
<h2 class="wp-block-heading" id="memecoins-for-the-masses"><strong>Memecoins for the masses</strong></h2> 
<p>For many years now, novelty tokens have been known to pop up suddenly in response to events going viral.</p> 
<p>A good example of this came in 2022, when an altcoin was rapidly created after Will Smith slapped Chris Rock at the Oscars.</p> 
<p>The imaginatively named Will Smith Inu skyrocketed in value mere hours after the ceremony concluded — but like a flash in the pan, lost a large chunk of its market cap just as quickly.</p> 
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   <p lang="en" dir="ltr">👉 Will Smith Inu <a href="https://twitter.com/search?q=%24WSI&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="">$WSI</a> / <a href="https://twitter.com/search?q=%24WETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="">$WETH</a><br>Ethereum – Uniswap<br><br>🟢 Price is up 266% in the last hour 🟢<br><br>Price: $0.000001191 – 24H Txns: 880 – 24H Volume: $770K – Liquidity: $250K<a href="https://twitter.com/hashtag/ethereum?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="">#ethereum</a> <a href="https://twitter.com/hashtag/uniswap?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="">#uniswap</a> <a href="https://twitter.com/hashtag/wsi?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="">#wsi</a> <a href="https://twitter.com/hashtag/willsmithinu?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="">#willsmithinu</a></p>— DEX Screener (@dexscreener) <a href="https://twitter.com/dexscreener/status/1508298423761612802?ref_src=twsrc%5Etfw" target="_blank" rel="">March 28, 2022</a>
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<p>Pump.fun essentially boils down this process into a couple of clicks, removing barriers to entry for degens who lack the technical knowhow.</p> 
<p>The website has a pretty elegant explanation of how it all works:</p> 
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 <picture loading="lazy" decoding="async" class="wp-image-14282458"> 
  <source type="image/webp" srcset="https://crypto.news/app/uploads/2024/07/Screenshot-2024-06-28-at-16.51.21.png.webp"> 
  <img loading="lazy" decoding="async" width="994" height="904" src="https://crypto.news/app/uploads/2024/07/Screenshot-2024-06-28-at-16.51.21.png" alt="Iggy Azalea launched her coin on Pump.fun. What is it? - 29"> 
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  Source: Pump.fun
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<h2 class="wp-block-heading" id="lightning-strikes"><strong>Lightning strikes</strong></h2> 
<p>Even spending five minutes on Pump.fun is enough to give you a headache — with newly minted tokens bursting onto the page in a shaking yellow box.</p> 
<p>Given it’s the internet, many of them seem to center on pictures of cats.</p> 
<p>But a huge milestone for the startup came when Iggy Azalea <a href="https://crypto.news/rapper-iggy-azalea-says-mother-token-can-be-used-to-buy-smartphones-and-cell-plans/" data-type="link" data-id="https://crypto.news/rapper-iggy-azalea-says-mother-token-can-be-used-to-buy-smartphones-and-cell-plans/">launched</a> MOTHER, with the Australian rapper aggressively shilling it to her 7.7 million followers.</p> 
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  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">Me all week looking at the market <a href="https://twitter.com/search?q=%24MOTHER&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="">$MOTHER</a> <a href="https://t.co/abBDsQmRf1" target="_blank" rel="">pic.twitter.com/abBDsQmRf1</a></p>— IGGY AZALEA (@IGGYAZALEA) <a href="https://twitter.com/IGGYAZALEA/status/1804608743298027846?ref_src=twsrc%5Etfw" target="_blank" rel="">June 22, 2024</a>
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<p>One week later, in early June, the memecoin had surged to a dizzying market capitalization of $200 million — further feeding the frenzy.</p> 
<p>But CoinGecko data shows that those who are late to the party often end up holding the bag. Prices have since fallen by about 75% from their recent highs, taking MOTHER’s valuation back down to $58.8 million at the time of writing.</p> 
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  <source type="image/webp" srcset="https://crypto.news/app/uploads/2024/07/chart-4-1.jpeg.webp"> 
  <img loading="lazy" decoding="async" width="1644" height="1200" src="https://crypto.news/app/uploads/2024/07/chart-4-1.jpeg" alt="Iggy Azalea launched her coin on Pump.fun. What is it? - 30"> 
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  Source: CoinGecko
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<p>And that brings us neatly to the dark side of Pump.fun.</p> 
<p>Diehard fans of celebrities who know next to nothing about crypto can end up making speculative investments they bitterly regret.</p> 
<p>There can also be pretty severe consequences for the stars themselves — something that Azalea’s either unaware of, or pretty willing to ignore.</p> 
<p><a href="https://crypto.news/tag/kim-kardashian/">Kim Kardashian</a> was banned from discussing crypto on social media for three years, and fined $1.26 million, after endorsing <a href="https://crypto.news/us-judge-revives-crypto-lawsuit-against-kardashian-and-mayweather/">EthereumMax</a> on Instagram without revealing she was paid.</p> 
<p>If the <a href="https://crypto.news/tag/SEC/">Securities and Exchange Commission’s</a> willing to come down like a ton of bricks on someone who simply posted about a digital asset, how will it react to a celebrity who’s launched one of their own?&nbsp;</p> 
<p>Meanwhile, despite the safeguards supposedly imposed to protect against rug pulls, Pump.fun hasn’t been without incident.</p> 
<p>Back in May, a man who used to work for the protocol <a href="https://crypto.news/pump-fun-exploiter-arrested-allegations-stole-2m/">was detained in London</a>, amid allegations that he exploited the project for almost $2 million.</p> 
<p>Jarett Dunn is now on bail and is expected to appear in court in August.</p> 
<p> You might also like: <a href="https://crypto.news/who-is-martin-shkreli-his-many-scandals-revealed/"> Who is Martin Shkreli? </a> </p> 
<h2 class="wp-block-heading" id="is-pump-fun-sustainable"><strong>Is Pump.fun sustainable?</strong></h2> 
<p>There’s no escaping the fact that a huge bubble is beginning to form in the world of memecoins.</p> 
<p>It’s almost like history is repeating itself, isn’t it? It was just three short years ago where we were in the crazy situation of <a href="https://crypto.news/tag/nft/">non-fungible tokens</a> <a href="https://crypto.news/most-expensive-nfts-highest-selling-digital-gems/">selling for $69.3 million</a>. Inevitably, buyers saw the value of their investment vanish before their very eyes, with creators laughing all the way to the bank.&nbsp;</p> 
<p>Memecoin mania also has wider implications for whether the bull run in the crypto markets will continue. Such greed and wild speculation has often served as a harbinger for the good times to end — and as we’ve seen, there’s a lot of that right now.</p> 
<p> Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only. </p>

Iggy Azalea launched her coin on Pump.fun. What is it?

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