Jason Derulo

Timeless

Generation

Impact

The world of memecoins is known for its high volatility and speculative nature. Recent data from&nbsp;<a style="text-decoration:none" href="https://dune.com/evelyn233/pump-data" rel="noopener noreferrer nofollow">Dune Analytics</a> sheds light on a troubling trend within this segment.
According to the data, a staggering 98.6% of memecoins created on the Solana-based platform&nbsp;<a style="text-decoration:none" href="https://bsc.news/post/what-is-pump-fun" rel="noopener noreferrer nofollow">Pump[dot]fun</a> never actually launch.&nbsp;
<h2 dir="ltr" id="span-span-platform-overview-and-statistics-span-span">Platform Overview and Statistics</h2>
Pump[dot]fun, launched in January 2024, offers an easy way for users to create and launch memecoins. With fees as low as $2 and a transaction cost of just 0.02 SOL (approximately $3.50), it promises an accessible entry point into the memecoin market.&nbsp;
&nbsp;
Despite its user-friendly approach, the success rate of tokens transitioning from Pump[dot]fun to Solana’s decentralized finance (DeFi) protocol, Raydium, is alarmingly low.
&nbsp;
Data reveals that only 1.41% of tokens from Pump[dot]fun manage to make it onto Raydium. This success rate has been relatively stable, fluctuating between 1.21% and 1.41% since May, with an all-time high of 2.56% recorded in February.&nbsp;
&nbsp;
The stagnation in the 'graduation rate' of coins—those reaching a market cap of $69,000 and being listed on a decentralized exchange (DEX)—further highlights the challenges.
<h2 dir="ltr" id="span-span-celebrity-endorsements-and-market-impact-span-span">Celebrity Endorsements and Market Impact</h2>
The memecoin frenzy has been significantly influenced by celebrity endorsements. High-profile figures like Caitlyn Jenner, Iggy Azalea, and Jason Derulo have launched and promoted their own memecoins on Pump[dot]fun.&nbsp;
&nbsp;
For instance, Jenner’s memecoin (JENNER) reached a market cap of $40 million within 24 hours of its launch, despite initial skepticism about its authenticity.
&nbsp;
Following Jenner’s success, Iggy Azalea’s memecoin (MOTHER) also gained attention but has since experienced a sharp decline in value.
&nbsp;
Other celebrity-linked tokens, such as Davido’s Timeless Davido (DAVIDO) and Rich the Kid’s Rich (RCH), have faced similar issues. The DAVIDO token has been criticized for pre-mining and alleged token dumping, while the RCH token saw its market cap plummet by over 90%.
<h2 id="span-span-revenue-generation-and-platform-performance-span-span">Revenue Generation and Platform Performance</h2>
Despite the high failure rate of tokens, Pump[dot]fun has been financially successful. The platform charges a 1% transaction fee on tokens until they reach a certain market cap, contributing significantly to its revenue.&nbsp;
&nbsp;
On July 29, Pump[dot]fun&nbsp;<a style="text-decoration:none" href="https://defillama.com/fees" rel="noopener noreferrer nofollow">generated</a> approximately $864,000 in a 24-hour period, surpassing Ethereum’s $550,000 for the same timeframe.
&nbsp;
This revenue model has proven lucrative, especially given the high volume of memecoin transactions. Pump[dot]fun’s ability to attract users with minimal fees and a promise of fairness has played a key role in its financial success.

Pump.fun's High Failure Rate Revealed: 98.6% of Memecoins Never Launch

Table of Contents

BSCN

Other articles published on Aug 2, 2024

Marathon Digital Reports Increased Losses Amid Equipment Failures and Bitcoin Halving

UK government withdraws £1.3 billion from technology and AI funding

MicroStrategy adds 12.22K Bitcoin despite Q2 loss

Litecoin Surges to 62 Million Transactions in 2024, Outpacing 2023’s Total

How Will Bitcoin and Altcoins Perform in August? Two Key Analysts Discussed

NEIRO Token Faces Insider Trading Allegations As BubbleMaps Reports 78% Pre-Allocation

Join our free newsletter for daily crypto updates!