Pump.fun’s Harsh Truth: Most Users Face Losses

Rumors are swirling in the crypto space that the Solana-based token launchpad Pump.fun is preparing to raise $1 billion through its upcoming PUMP token launch. But the latest on-chain data suggests it may be a tough task to revive its former glory.

Rumor Has It: PUMP Token is Coming

Speculation is mounting around Solana-based launchpad Pump.fun as community chatter on X hints at a token launch, including an airdrop to community members.

The rumors gained traction after a Blockworks report cited anonymous sources claiming the memecoin launchpad plans to raise $1 billion through a token sale, with a projected valuation of $4 billion. 

So far, Pump.fun has neither confirmed nor denied the reports, offering no public details on the token’s utility or distribution mechanics.

Data Reveals Deep User Losses

While hype builds around the token sale, on-chain data paints a more sobering picture. Insights from Dune Analytics show that over half of all wallets active on the platform have suffered losses.

More than half (56.4%) of the addresses that traded more than 10 tokens launched via Pump.fun in the past six months recorded cumulative losses ranging from $0 to $1,000.

A small portion of wallets experienced losses over $100,000 and even over $1 million.

Pump.fun user wallets’ profit and losses. Source: Dune

In contrast, only 21.7% of wallets earned up to $1,000 in profits, with significantly fewer reaching five-figure gains. Just 310 wallets managed to cross the $1 million profit mark, less than 0.01% of all participants.

Wallet analysis also revealed behavioral trends: about 10.1% were classified as “Single-Side Buy” wallets, or accounts that only bought but never sold, often linked to inexperienced or trapped traders. 

Conversely, “Single-Side Sell” wallets, which only sold tokens without buying, made up a much smaller fraction and are likely affiliated with project insiders or token creators.

Memecoin Momentum Fades

Pump.fun’s financial performance is also showing signs of strain. According to DefiLlama, the platform generated $46.6 million in revenue in May, a 66% drop from its January high of $137 million.

Pump.fun revenue continues to drop. Source: Defillama

This decline mirrors a broader cooldown in the memecoin sector. Data from CoinMarketCap shows total market capitalization for meme tokens has plunged to $64 billion as of June 4, down more than 54% from January’s $137 billion.

Why This Matters

With widespread user losses and falling revenues, Pump.fun’s long-term sustainability is under increasing scrutiny.

Dig into DailyCoin’s popular crypto news:

Chainlink Under Watch: Whale Activity, Bearish Indicators Stir Caution

Trump Shuns Magic Eden Crypto Wallet Ties, TRUMP Coin Dips 13%

FAQs