As a seasoned crypto investor with over a decade of experience navigating the volatile digital asset market, I must say that the recent crash of Pump.fun tokens has been a humbling reminder of the inherent risks involved in this space. Having seen the meteoric rise and fall of numerous coins throughout my journey, I can’t help but feel a sense of deja vu as I watch these meme coins plummet.
Most Pump.fun tokens have plummeted sharply in recent weeks, costing investors millions of dollars.
It appears that the majority of meme coins have dipped by more than 20% within the last week, and over 50% from their peak values this year. Currently, their total market capitalization stands at approximately $391 million.
Most Pump.fun tokens have crashed
In May, MICHI, a significant component of the ecosystem, was valued at $0.49, but it has since fallen to $0.10 as of now. This decline has also resulted in a reduction of its market capitalization from $187 million to $58 million.
The value-based cryptocurrency associated with Andrew Tate, often referred to as “Daddy Tate” (DADDY), has dropped significantly from $0.52 to $0.072. This decrease in value has led to a reduction in its market capitalization to approximately $43 million.
As a researcher, I’ve noticed an intriguing trend in the crypto market. For instance, the token associated with rapper Iggy Azalea (MOTHER) has plummeted from its peak of $0.22 to a current value of $0.0300. This decline has brought the overall valuation of this token to roughly $38 million. Similar downward trends have been observed in other tokens from Pump.fun, such as Billy, Smoking Chicken Fish, Aura, and Waffles.
While not all individuals have experienced significant losses, it’s worth noting that data from DeFi Llama indicates the developers of Pump.fun have amassed a substantial sum. In fact, they’ve collected close to $100 million in cumulative fees since the platform’s launch. July was particularly profitable for them, earning over $28 million, and this was followed closely by approximately $20 million in June. So far, August has seen Pump.fun generate more than $15 million in revenue.
One significant profiteer from the Pump.fun frenzy is Sahil Aora, rumored to be the brains behind many of this year’s top celebrity-endorsed cryptocurrencies. His earnings are said to exceed $30 million.
1/ Exploring the story of Sahil, showcasing previously unreleased footage, revealing how he amassed $30M in 2024 by introducing tokens for celebrities—many of which plummeted to worthlessness.
— Bubblemaps (@bubblemaps) August 14, 2024
Justin Sun launches Sunpump
Meme tokens from Pump.fun have positively impacted Solana (SOL) as well, leading to increased action on its decentralized trading platforms such as Raydium and Orca. Notably, Solana processed over $6.5 billion in transactions within the last week.
Meme coin creation platform Pump.fun has gained significant popularity in recent times. In just over eight months, users have minted over 1.8 million unique tokens, with some achieving viral status. This platform utilizes the Solana blockchain, a system renowned for its low transaction fees and swift speeds.
The achievement of Pump.fun has sparked the development of similar meme coin creators. Just recently, Justin Sun introduced SunPump, which is rapidly garnering attention from users.
8-day-old sunpump just set a new record:
— H.E. Justin Sun 孙宇晨(hiring) (@justinsuntron) August 19, 2024
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2024-08-19 16:44