Solana’s Pump.fun surpassed $100 million in revenue since its January launch, but users aren’t sure the feat is good for crypto and decentralized finance.
It took the Solana (SOL) memecoin launchpad 217 days, or roughly seven months, to achieve its record revenue. Pump.fun beat DeFi giants like Ethena (ENA), Pancakeswap (CAKE), and even Curve Finance (CRV) to the milestone.
— Ryan Watkins (@RyanWatkins_) September 2, 2024Pumpdotfun is the fastest growing application by revenue in the history of the cryptoeconomy — $100M in revenue in just 217 days.
Love it or hate it Pump is a massive signal to builders to build on Solana and a trojan horse for consumer adoption of blockchains. pic.twitter.com/xhTNpLBoCW
The protocol allows anyone to create meme-inspired tokens on Solana’s blockchain. Once developers launch a coin, the crypto trades on a bonding curve till it exceeds a $69,000 market cap.
Solana became the go-to memecoin chain in DeFi after the service debuted in early 2024. At one point, developers created over 500,000 memecoins via the platform in a month. The launchpad paved the way for oversaturation in the Solana ecosystem since creating tokens became easier than a few clicks. A crypto.news research found that less than 1% of Pump.fun wallets profited $1,000 or more.
Crypto users unhappy with Pump.fun success
Pump.fun may have raced to $100 million in revenue in record time, but many have questioned if it’s a net positive development for DeFi and the whole cryptocurrency industry.
The biggest concern stemmed from the protocol’s sustainability and its promotion of the casino-like underbelly of digital assets.
One user argued that the platform fueled cash grabs by celebrities that did not align with crypto’s ethos. Several public figures, from Andrew Tate to Iggy Azalea, launched Pump.fun memecoins. Most of the tokens have crashed well below their peaks.
Questions over regulatory scrutiny of the Solana-based platform also remain, with agencies like the U.S. Securities and Exchange Commission insisting SOL itself, and perhaps its ecosystem, violates federal securities laws.
— Fishy Catfish (@CatfishFishy) September 2, 2024Ask them:
1. How growable & sustainable is a business model of scheming insiders & cash-starved D-list celebrities rugging retail plebs?
2. How many of the rugged users were minors?
3. How long until the legislators & regulators step in when they become more aware of 1 and 2?