PUMP Chaos Mode Waterloo! Only 500 coins added in the first week of issuance, revenue unexpectedly dropped.

The “Chaos Mode” launched by Pump.fun (PUMP) last week failed to increase token issuance or revenue in its first week. In the week prior to the launch of Chaos Mode, the platform averaged an issuance of 17,300 tokens per day, which only increased to an average of 17,800 tokens per day after the launch of Chaos Mode, a mere increase of about 500 tokens, which is negligible. Even more concerning is that the daily revenue over the past week has actually decreased, leading to a reduction in PUMP's buybacks.

Chaos Mode Mechanism Explained: 24-Hour Frenzy of AI Agents

(Source: X)

The “Mayhem Mode” launched by Pump.fun is an optional Token creation setting that allows autonomous AI trading agents to buy and sell within the first 24 hours after a new token issuance. The feature works by additionally minting 1 billion Tokens for agent trading, and any unused agent Tokens will be destroyed after 24 hours. It is worth noting that there are restrictions on the trading scale and frequency of the agents, and no protocol fees are required.

The original intention of this mechanism design is to promote early price discovery, thereby attracting more attention to tokens more quickly. Under the condition of constant launch friction, the expected improvement is the visibility of the tokens. The PUMP platform hopes to create early trading activity for newly issued tokens through automated trading by AI agents, allowing these tokens to stand out among many competitors.

From a technical implementation perspective, the additional minted 1 billion tokens will not dilute the interests of existing holders, as these tokens are exclusively for AI agent use and will be destroyed after 24 hours. This design attempts to balance the contradiction between liquidity provision and token supply control. The trading restrictions on AI agents are meant to prevent excessive market manipulation, but the specific parameters of this restriction have not been made public.

However, this seemingly sophisticated mechanism has revealed fundamental problems in practical operation. A single beneficiary (i.e., the AI agent controlled by the platform) artificially makes the trading market appear active, which is very similar to the “wash trading” behavior in traditional financial markets. Although the platform emphasizes factors such as public disclosure, voluntary participation, and agents not needing to pay agreement fees, making it more akin to guidance or market-making services provided by the platform, market reactions indicate that this defense has not gained user acceptance.

First week data dismal: the awkward reality of a 500 coin increase

(Source: Pump.Fun)

A week before the launch of Chaos Mode, the Pump.fun platform had an average daily issuance of 17,300 tokens. Since the launch of Chaos Mode, the platform has had an average daily issuance of 17,800 tokens, showing a negligible increase compared to the previous week. This daily increase of about 500 tokens translates to a percentage of only about 2.9%, which is far below market expectations.

This indicates that, despite the small sample size and the potential significance of time factors, the chaotic pattern has had almost no positive impact on the frequency and quantity of token issuance so far. This result is a significant blow to the PUMP platform, as new feature launches typically bring short-term attention economy effects, and should attract users to try it out initially, even if the features themselves have limited value.

From the perspective of user behavior analysis, this kind of cold response may stem from several factors. First, the token creators may be concerned that the trading activities of AI agents will be recognized by the market as false trading volume, thereby harming the credibility of the token. Second, although the chaotic model provides early liquidity, it does not address the most core issue of token issuance: how to stand out among a vast number of new coins.

Possible Reasons for Chaos Mode Failing to Boost Issuance Volume

Wash Trading Concerns: Users worry that AI agency trading may be seen as false activity, damaging the Token's reputation.

Unclear Value: Early liquidity provision has not addressed the fundamental issue of token visibility.

Lack of supporting mechanisms: There is no stronger content filtering and ranking system in place.

Market Weakness: Overall sentiment in the crypto market is sluggish, and new features are difficult to reverse the trend.

If PUMP combines the chaos mode with more powerful content filtering and ranking mechanisms, then the additional activity on the first day can increase the proportion of “breakthrough” coins. But without these, the chaos mode may devolve into a high noise, low yield feature. Current data shows that the latter is becoming a reality.

Revenue Decline and Market Capitalization Impact: The Dual Dilemma of PUMP

Token issuance drives the revenue growth of PUMP through creation fees, bond guarantees, and early trading fees. Despite the launch of the chaos mode, the daily revenue over the past week has actually declined. This result is even more concerning as it implies that not only have the new features failed to attract more users, but the activity level of existing users is also decreasing.

The decline in revenue has led to a decrease in PUMP buybacks, thereby weakening the mechanical support for the token. In the economic design of PUMP's token, a portion of the protocol's revenue is used to buy back PUMP tokens from the market, and this mechanism provides structural support for the token price. When revenue declines, the buyback volume naturally decreases, the buying support weakens, and the token price comes under pressure.

As of the time of writing, the market capitalization of PUMP is approximately $1.1 billion, down about 30% from the historical high two months ago. This 30% decline is not uncommon in the current market environment, but considering that the chaotic pattern was supposed to be a significant update to boost platform performance, this outcome is clearly below expectations. The decline in market capitalization not only affects the wealth of holders but also shakes the market's confidence in PUMP's ability to innovate.

From the perspective of the competitive landscape, PUMP faces fierce competition from other token issuance platforms. When the chaos model fails to deliver the expected results, users may turn to competitors that offer better services or lower costs. Once this user attrition begins, it will create a negative cycle: fewer users → declining revenue → reduced buybacks → falling coin prices → more users leaving.

Future Improvement Directions and Market Outlook

In the next week or two, due to users testing the new model, the token issuance frequency on Pump.fun may remain volatile and relatively sluggish. However, this is also a critical window for the PUMP platform to adjust and improve. If better auxiliary features are introduced, such as timed release chaos blocks or different visibility levels, the token issuance volume may increase as a result, thereby having a positive spillover effect on other metrics of Pump.fun.

Scheduled releases of chaotic blocks can concentrate AI agent activities in specific time periods, creating a more pronounced attention focus effect. Different visibility levels can provide differentiated displays based on token quality or creator reputation, helping quality projects stand out. If these auxiliary functions are combined with chaotic modes, they may form synergistic effects.

A more fundamental direction for improvement is to establish a stronger content filtering and ranking mechanism. The biggest problem currently faced by Pump.fun is the low signal-to-noise ratio, with a massive number of low-quality tokens drowning out a few high-quality projects. The early liquidity provided by the chaos mode is merely a stopgap solution to surface issues; what is truly needed is an intelligent system capable of identifying and recommending high-quality projects.