- The income from the pump. Fun fell sharply.
- The platform is faced with increased competition from new token launch pads.
- The team sparked criticism for the launch of their token.
Pump.fun, the same Launchpad who stormed the cryptography industry last year, lost his domination in the middle of growing competition and criticism of its users.
Platform revenues reached less than $ 300,000 on Monday, according to Defillama Data. His income fell below this amount on only two other days in the last 12 months, both in September 2024.
The change raises questions on the question of whether Pump.fun can regain its place in the middle of a memecoin crisis and an increasingly congested market.
Pump.fun was launched in 2024 and quickly became one of the most discussed projects in crypto. On Tuesday, he won more than $ 730 million in cumulative income.
However, it was confronted with severe criticisms to fuel creeping speculation in which many retail investors are left in hand.
Pump.fun allows anyone to create a token for less than $ 2 on Solana. The first project of this type, he led to an influx of new tokens entering the blockchain, including several of the biggest mecoins.
More specifically, Fartcoin reached a market value of more than $ 2 billion in January, although it has since slipped to a value of around 1 billion dollars.
During most of the first half, Pump.
Projects established like Raydium and Jupiter have launched their own token Launchpads. But they failed to put a bump in the market share of the pump.
This changed on July 6, when Letsbonk became the first Launchpad to pass Pump. Fun in market share. That day, LetsBonk represented 58% of all token launches.
LetsBonk continued to grow: on Monday, three out of four tokens on Solana were launched via LetsBonk. Only 15% of the tokens were launched via Pump.fun.
The upstart has also dominated other measures.
In the past 24 hours, LetsBonk represented $ 163 million in volume, around 800% more than Pump.fun. LetsBonk reported approximately $ 1.3 million in fees, while Pump.fun received just over $ 200,000.
Lancements on LetsBonk have also been successful, with 240 “graduates” tokens in the past 24 hours. In this period, Pump.fun had only 34 graduates.
On token launchers like Pump.fun and LetsBonk, a new same graduate when he lifts enough Solana on his liaison curve to register on a decentralized exchange.
Recent actions
The recent actions of Pump.fun have also led to criticism.
In November, Pump.fun killed live feature designed to allow creators to promote their same in real time. He became a magnet for chaos, because users have cascades, threatened with pets and even organized suicide attempts in order to pump the value of their tokens.
He quietly relaunched the feature film in April.
On July 12, Pump.fun raised $ 500 million in just 12 minutes in an initial part of parts. The team had also raised an additional $ 720 million by selling private investors pump tokens, many of which sold their assets once the token began to exchange.
“The” institutional round “has succeeded in any secondary request (markets) and left the market with an incessant supply to empty,” said McKenna, a pseudonym partner of the venture capital company ARETE CAPITAL, on X.
On July 23, the co-founder of Pump.fun, Alon Cohen, said that the planned air card “will not take place in the immediate future”. Within 24 hours, the pump token dropped by 15%.
Tuesday, the token was negotiated at around 33% below its ICO price of $ 0.004.
Zachary Rampone is a DL News correspondent. Do you have a tip? Contact it to zrampone@dlnews.com.
