News
Pump.fun Revenue Exceeds $50 Million on Solana Blockchain
Pump.fun, a leading memecoin launcher on the Solana blockchain, has reached a major milestone: its revenue has surpassed $50 million.
Second data Since DefiLlama, Pump.fun’s cumulative revenue has surpassed $50 million. Notably, the platform has generated over $598,000 in the last 24 hours.
Pump.fun was launched in January this year and has become more well-known in the context of the meme token craze. Many cryptocurrencies with political themes and celebrity tokens have drawn attention to Solana due to its user-friendly interface and affordable transaction fees.
According to Dune AnalysesPump.fun has distributed more than 1.18 million memecoins, while recent drops in daily fees are likely a result of negative market conditions.
Pump.fun’s simple business model consists of a 1% trading fee and a two SOL fee when the tokens are liquid enough to be listed on the Raydium decentralized exchange running on the Solana blockchain. This paradigm has fueled the Solana ecosystem’s high user engagement and transaction activity level.
Pump.fun’s growth has also been aided by celebrity involvement. Caitlyn Jenner has been widely promoted the toss of his coin, JENNERon the platform last month. Shortly after its introduction, JENNER’s value soared to $43.6 million, before falling more than 85%.
Initially, a memecoin with a market capitalization of $4,000 is only traded via Pump.fun. A coin will immediately stop trading on the platform and will be moved to Raydium once its market cap approaches $60,000.
Interestingly, Pump.fun has had a serious problem with fraud. It is so cheap to launch tokens on the platform; as a result, 95% of the tokens are believed to be fake.
One famous scam is known as the “Simple Dev Dump,” where the developer purchases 5 to 6% of the tokens and then quickly dumps them, usually within minutes or just before the token is listed on Raydium. The fact that the developer’s wallet is visible makes it easier to manipulate the market and exploit it.
Dumping tokens after becoming the “King of the Hill” (KOTH) is another common scam. In this case, other traders become alarmed by the developer’s massive sell-off, which causes the token’s value to drop rapidly as everyone tries to exit the market first.
As a result, traders are forced into a PVP (player versus player) scenario where they must rush to sell their tokens before the market collapses. Despite these challenges, Pump.fun’s success has spurred competition, particularly from Dexscreener’s Moonshot, a new Solana-based memecoin launchpad that has already amassed nearly $500,000 in its debut week.
Pump.fun’s financial successes and dominant market share highlight the company’s influence on the memecoin market and the broader cryptocurrency ecosystem, particularly in the Solana community.
Read also: Pump.fun Hits $30M in Revenue Amid Solana’s Memecoin Craze