The meme coin sector is one of the most challenging markets for achieving sustained success. According to research, out of more than 1.7 million meme coins launched on Pump.fun, only 15 have managed to maintain a market capitalization of over $10 million for multiple weeks.

This is a success rate of merely 0.0001%.

Pump.fun has turned into a lucrative venture, amassing millions in revenue. However, this financial success starkly contrasts with the minimal benefits it delivers to its average user.

NewtonEinstein, a pseudonymous meme coin analyst, has observed that tokens not affiliated with Pump.fun, particularly those with low burned liquidity pools, perform better due to less fragmented liquidity environments. Consequently, he predicts a forthcoming market shift favoring these independent coins.

Further data showcases the rarity of success within the Pump.fun meme coins. Only 41 meme coins have sustained a market capitalization exceeding $1 million for several weeks, representing just 0.0002% of all tokens launched.

Moreover, only 141 of these tokens, or 0.008%, appear on major data aggregator platforms like CoinGecko. This highlights the immense difficulty of gaining visibility in such a saturated market.

“Pump.fun killed meme coins,” crypto trader Ran Neuner said.

Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024

Describing the platform, MrPunk.eth, a vocal critic, labels Pump.fun as a “slaughterhouse” for investors’ hopes. Over the last 24 hours alone, more than 16,357 tokens were launched, yet only 175 reached the decentralized exchange Raydium. Additionally, just 19 of these stayed above a market capitalization of $69,000.

Another user, Bastille, starkly summarized the platform’s unfavorable odds.

“Pumpfun gambling is legit the worst odds out of any gambling game. [It’s] better to just go to the casino,” Bastille said.

New Update Invites More Criticism

Adding fuel to the fire, Pump.fun recently implemented a policy change. The platform now allows users to launch their meme coins for free, shifting from the previous requirement of a nominal $2 fee per coin, which is now charged to the first buyer instead.

This strategic move aims to remove financial barriers for creators and includes a reward mechanism where developers receive 0.5 Solana (SOL) once their coin completes its bonding curve.

Pump.fun claims that these changes are part of a beta test of the “pump fun mechanism,” which also features a reduced migration fee of 1.5 SOL. The objective is to encourage developers to fully integrate their coins into the market, regardless of their ongoing investment.

However, this update has not been without its detractors. Critics argue that eliminating the creation fee could lead to an influx of low-quality meme coins, potentially diluting the market further.

Sapijiju, a pseudonymous executive at Pump.fun, defended the policy.

“Our thesis is that the more coins/content that is created, the higher the likelihood that there will be something worth consuming and fun to trade for our customers. To everyone stressing over-saturation or blaming increased coin launches – you are actually blaming the wrong thing. The way we fix this is by working on discovery. By doing that, we can remove the problems of bad actors, duplicate coins, bump bots—literally everything that is causing problems on Pump for you guys right now,” Sapijiju said.

Despite the backlash, many degens continue to engage with the platform, perhaps driven by the thrill of the gamble. Since its launch, Pump. Fun has amassed nearly $90 million in cumulative revenue, making it one of the most successful applications in the crypto ecosystem.

Read more: 11 Top Solana Meme Coins to Watch in August 2024

Yet, as the platform seeks to address user concerns, the ultimate viability of meme coins remains an open question.