On-chain analytics data shows that only 20% of users on the Pump.fun platform managed to profit from trading meme coins. Analysts compare the risks of investing in such projects with gambling in casino games. Meanwhile, the hype around the meme coin market continues to grow.
An independent analyst, using the pseudonym arndxt, reported that only one in five traders sees profits from trading meme coins on the Pump.fun platform. And about 80% of users suffer losses from investing in the meme coin market.
According to arndxt, only 20% of all Pump.fun users made profits, and just 88,500 users, or slightly more than 3.5% of all traders on the platform, earned profits exceeding $1,000.
Another independent analyst calculated that, on average, over 10,000 tokens per day are generated on Pump.fun. Between August 10 and 11, 16,357 tokens were created on the platform. However, only 175 of them (~2%) were listed on the Raydium exchange, and just 19 tokens reached a market cap of over $69,000. The analyst compared the probability of winning by investing in memecoins on the platform with the chances of profiting from meme coin investments on Pump.fun to the odds of winning at American roulette in a traditional casino. It turned out that gambling is much more profitable — 2.6% vs. 0.12%.
However, interest in the meme coin market is only gaining momentum. Recent successes of Pump.fun triggered increased trader activity in the sector, leading to the creation of new blockchain platforms for meme coin trading. For example, the Sun Pump platform was launched on the Tron network. In an interview with CoinDesk, Justin Sun, Founder of the Tron blockchain, said that the team conducts thorough checks of projects on the platform to protect users from fraud. But users believe the main purpose of launching Sun Pump is to ride the wave of hype.
To learn more about what meme coins are and whether they can be considered a reliable investment, read this article by CP Media.
