Solana worries meme coins: They are not seeing the light of day

Almost all of the cryptocurrencies produced on the Solana meme coin creation platform pumpfun are going to zero.

Dune Analytics data shows that the success rate of tokens generated on pump.fun in entering Raydium, a Solana-based decentralized finance protocol, is 1.41%, and this rate has fluctuated between 1.21% and the all-time high of 2.56% reached on February 16th since May.

Solana ecosystem memecoins are popular

Adam Cochran, partner at Cinneamhain Ventures, claimed, “All of these show that we have ultimately eliminated the memecoin trend.”

Crypto analyst and Web3 developer Bread added, ‘I didn’t realize how ruthless the memecoin trend on Pump.fun was,’ and noted that only 22,300 out of the 1.58 million tokens created had reached Raydium.

Some analysts, however, believe that the success rate does not reflect the overall memecoin market, but only indicates how easy pump.fun makes it to create memecoins. Crypto phenomenon Bunjil, with 56,900 followers, said, “Pump fun didn’t destroy memecoins, it just lifted the veil on how the sausage is made and made the production of the mentioned sausage much easier.”

Although only a few have been released, the revenue generated by those who do so has been significant. It appears that Pump.fun charges a 1% transaction fee until the token reaches a threshold market value.

Platform, it has become a trend among celebrities to create and promote memecoins, including Caitlyn Jenner, Iggy Azalea, Jason Derulo, and many others.

This article does not contain any investment advice or recommendation. Every investment and trading activity involves risks and readers should conduct their own research when making decisions.