The Business of Memes: Inside the Solana Meme Coin Factory Pump.Fun
Pump.fun, a Solana token launchpad, has generated over $774 million in revenue in less than two years, launching nearly 12 million tokens. Despite its initial success, revenue has declined by 80% recently, dropping from $136 million in January to $26 million. The platform raised $600 million in an ICO but has seen its PUMP token's market cap fall from over $6 billion to around $4.2 billion. Competition from rival launchpad LetsBonk has eroded Pump.fun's market share, leading to a decrease in token creation rates. The graduation rate for tokens has also dropped significantly, indicating reduced trader interest. While Pump.fun allows quick token creation, it has also fostered an underground economy of trading bots and exploitative practices. Founder Alon Cohen emphasizes the importance of user experience alongside data, suggesting that the market's focus should be on identifying successful projects within the meme coin space.
