Since January 14, 2024, the Solana-based Pump.fun has launched an insane 8.7 million tokens into the world. But guess what? Only four of them still have a market capitalization above $100 million, according to their own data. Despite an impressive $600 million in total revenue, the majority of these memecoins have plummeted in value or completely disappeared from the radar. What’s going on here?
Pump.fun is a playground for anyone with a Solana wallet. No code needed, just a few clicks and you have your own memecoin. Millions of users have flooded the platform with the wildest creations. But the numbers don’t lie: only a handful of tokens have survived and remain strong. The rest? Poof, gone – a digital graveyard full of forgotten hypes.
On Thursday, Pump.fun announced big news: they have launched their own decentralized exchange, PumpSwap. With this, they take the trading of their memecoins and Solana tokens into their own hands, instead of sending everything to Raydium. Coincidence or not, this comes shortly after Raydium announced their own LaunchLab – a token generator that directly competes with Pump.fun.
PumpSwap operates on a constant product-AMM, the same trading model as Uniswap V2 and Raydium V4. Users can add liquidity and directly swap tokens on Solana. The platform already supports assets such as USDe, PENGU, SEI, Jupiter (JUP) and Wormhole (W). Each trade costs a 0.25% fee: 0.20% goes to liquidity providers, 0.05% to Pump.fun itself. But that’s not all. The team hinted at a twist:
“Soon we will share a portion of the revenue with token creators. If this catches on, millions of dollars could flow to creators to boost their communities and encourage better launches.”
And there’s more good news for creators. Previously, tokens had to be manually migrated to a DEX like Raydium after their bonding curve – a hassle that often broke momentum and confused newcomers. With PumpSwap, that’s a thing of the past: migrations are now automatic and free. The team put it this way:
“That fiddling with migrations was a bottleneck. It slowed everything down and made it unnecessarily complicated. Now that’s solved.”
This is also a smart move to keep trading volume in-house and not lose it to Raydium, especially now that LaunchLab is on the starting blocks.
When the SEC dropped the lawsuit against Ripple and XRP made a price jump, it didn’t take long for Pump.fun to be flooded with scam tokens. Scammers saw their chance and launched Ripple-like coins to lure unsuspecting hype hunters. Tokens like RippleDrop (RDROP), RippleRoar (RRRX), XRP Ripple (RLUSD) and Ripple Victory (RVY) popped up like mushrooms. Most peaked at $2,000 to $3,800 in market capitalization and then disappeared into nothingness. Pure cash grabs without a team, plan, or future – just a name and an exit strategy.
This is typical Pump.fun. With every major crypto headline, scammers emerge. The platform is so easy to use that it’s a paradise for fake tokens. Choose a trending topic, give your coin a catchy name, launch, pump and dump – done. Without filters or checks, it’s an open door. Any buyer who doesn’t do their homework first risks being left empty-handed. Many fell for these Ripple scams, thinking there was a link with XRP. That’s how fast things go in this world.
Pump.fun remains a sort of casino. With PumpSwap, they try to take control and reward creators, but the scam pitfall remains large. Only four tokens above $100 million out of the 8.7 million? That says enough. It’s a playground full of opportunities, but also full of risks. Always check what you’re buying, because in this memecoin mania, you can lose your SOL in no time!
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