Intensifying Criticism Surrounds Pump.fun: A Solana-based Memecoin Platform
In recent times, a significant wave of criticism has been directed towards Pump.fun, a Solana-based memecoin launchpad that has attracted approximately $741 million from user trades. Analyzing blockchain data reveals that since May 2024, this platform has been liquidating its fee earnings in substantial portions. This has led traders to question whether the site prioritizes user interests or its own financial gain.
Massive Fee Extraction on Pump.fun
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Insights from LookOnChain analytics indicate that Pump.fun has divested about 4.1 million SOL tokens, generating around $741 million, with an average token price of $180. Furthermore, roughly 3.84 million SOL, equating to nearly $699 million, were transferred to the Kraken exchange. An additional 264,373 SOL were exchanged for $41.64 million USDC. These actions underscore the platform’s capacity to extract considerable value from its users swiftly.
User Disadvantage Versus Platform Profit
Reports suggest that while 13.55 million wallets have engaged with Pump.fun, only a minor fraction—293 wallets—have realized gains exceeding $1 million. In stark contrast, nearly all traders have not surpassed profits of $10,000.
Renowned crypto influencer Crypto Bitlord has publicly criticized Pump.fun, alleging the platform has extracted over $20 billion through scams. He describes the application as a “disease,” calling for its removal from the internet for the benefit of the entire crypto ecosystem.
Since its inception in January 2024, Pump.fun has overseen more than $66 billion in trading volume. It issues approximately 27,305 new tokens daily, imposing a 0.25% fee per trade and recently implementing a 0.05% revenue share for token creators. This change incentivizes developers to offload tokens quickly and exit after securing their share.
Concerns Over Livestream Content
The platform’s livestream feature has sparked significant controversy due to the airing of extreme content intended to manipulate token prices. Although Pump.fun halted livestreams in November 2024, it resumed them for 5% of users in April 2025, promising enhanced moderation that has yet to materialize.
Security advocate Beau has highlighted the dangers, urging immediate action to halt harmful content and provide necessary support for those affected.
Regulation and Legal Challenges
Amidst mounting regulatory pressure, Pump.fun faces significant challenges. The platform’s official social media accounts, along with co-founder Alon Cohen’s profile, were suspended without explicit reasons, speculated to be linked to API misuse or potential securities law violations. A legal complaint accuses the platform of selling unregistered securities disguised as meme tokens.
Plans for a significant token sale, valued at $4 billion, are now uncertain. With increasing regulatory scrutiny and diminished social media presence, the future actions of Pump.fun will be pivotal, both for its business operations and the traders who have invested in its promises.
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