The Pump.fun team, known for their popular memecoin deployment platform on the Solana network, recently made two major announcements during an X Spaces event on October 19th. They revealed plans for a future token release and introduced an upgraded trading terminal called “Pump Advance.”
While they did not provide a specific timeline for the future token launch, the team shared more details about Pump Advance. This new platform includes mini-charts, information on top holders, and social indicators to assist traders in navigating the vast array of memecoins competing for attention. Additionally, the team announced that there would be no fees for the first month and introduced enhanced login security options through Privy.
Memecoins have elicited mixed responses from the crypto community. Some industry leaders, such as Murad Mahmudov, argue that memecoins serve a legitimate purpose in the crypto space by eliminating the speculation premium associated with altcoins. On the other hand, notable figure Jimmy Song believes that memecoins are detrimental to investors and represent a form of speculative gambling.
Data from Dune Analytics reveals that approximately 98.5% of potential memecoins on the Pump.fun platform fail to successfully launch on Raydium, a popular decentralized trading protocol on the Solana network. In an effort to address this issue and prevent rug pulls, the Pump team introduced an $80 incentive in August 2024 for token creators who complete the bonding curve and successfully list their tokens on Raydium.
Critics of the platform argue that the chances of choosing a successful memecoin on Pump.fun are even lower than winning at roulette. One memecoin trader estimated the odds of picking a winner to be around 0.12% and referred to the platform as a “slaughterhouse.”
Despite the high number of failed token launches, the Pump.fun platform continues to attract users and boasts significant transaction volume. On August 13th, the platform generated over $5.3 million in revenue in a single day, surpassing the combined revenue of the 24 largest protocols during the same period.
In a related magazine article, it was reported that 1 in 6 new Base memecoins are scams, and 91% of them have vulnerabilities.