Over the last year, the meme coin market has exploded in popularity. Subsequently, it has also seen massive amounts of funds funneled in as individuals look to be the next benefactor of the craze. That has not been the case for platforms like Solana’s Pump.fun, as 60% of users have reportedly lost money as some concerning facts have come to light.
Pump.fun is a key aspect of the Solana ecosystem that allows individuals to create their very own meme coin. However, it has also been mired in controversy as it has proven to be an endeavor of loss for some users. That could only multiply with the impending arrival of its PUMP token.
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Solana Network’s Pump. Fun is Costing Users as Token Nears Launch
2025 has seen meme coins be a popular point of discussion. The craze has reached new heights, with US President Donald Trump launching his TRUMP token after returning to the White House. That asset skyrocketed, with experts saying it had $100 potential at the start of the year.
However, its volatility and questionable value have been equally dominant talking points so far this year. That has only magnified as the Solana network’s Pump.fun reportedly has 60% of users losing money. With its PUMP token nearing launch, many are concerned.
Also Read: SEC: Meme Coins are Generally Not Securities Under Federal Law
Dune Analytics data confirmed that, statistically, most users are losing money. Indeed, there are 17,000 wallets that are officially down more than $100,000. That gets even more concerning when the 4.257 million addresses that traded 10 pump.fun tokens in the last six months posted collective losses of up to $1,000. That represents 56% of all traders and 2.4 million addresses.
Conversely, just 5,000 addresses had turned a profit of more than $100,000. Moreover, only 311 wallets had seen gains exceed the $1 million mark. Altogether, the data shows clear wealth disparity, with the imminent PUMP token set to take things to a concerning level.
A Solidus Labs report noted that 98% of Pumo.fun tokens were flagged as scams or fraudulent in their trading activity. Moreover, just 1.4% have verifiable liquidity. Subsequently, the team behind the platform is planning to raise $1 billion for a “community-driven token model” with the launch of PUMP.
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