In 2024, the Solana blockchain experienced a rapid expansion in the memecoin market, with pump.fun being at the forefront. The platform captured a massive audience seeking quick profits. Crypto.news conducted an in-depth analysis revealing that while some early adopters secured profits, the majority of investors lost money.
Pump.fun holds a significant 50% market share in Solana’s memecoin ecosystem by streamlining token launches and making them quick and easy. It ensures a fair process for creating and trading tokens without issues like presales or team allocations.
Pump.fun operates as follows:
- Users pick a memecoin.
- They buy the coin through a bonding curve.
- They can sell anytime to secure profit or cut losses.
- If the token’s market cap hits $69,000, $12,000 of liquidity locks into Raydium, a decentralized exchange on Solana, and then burns.
Using queries and scripts inspired by Dune analysts, we gathered data for this analysis, revealing that about 300,000 tokens are created on Solana monthly since March 2024. However, only 33,683 out of 1,883,578 tokens made it to Raydium, with a success rate of 1.79%.
The statistics for investors on the pump.fun platform show:
- 17,725,908 wallets (59.9%) recorded negative Profit and Loss (PNL), with 89% realizing losses by selling at a loss.
- 11,126,772 wallets (37.6%) reported positive PNL, with 98% realizing actual gains.
The distribution of profits shows the low probability of winning through memecoin investments. Here are some comparisons:
- +$100 profit (6.47% chance): Less likely than being accepted into Harvard (7.8% in 2021).
- +$1,000 profit (0.76% chance): Similar to having twins (0.4%).
- +$10,000 profit (0.046% chance): Less likely than becoming a NASA astronaut (0.055%).
- +$100,000 profit (0.0033% chance): Less likely than being struck by lightning (0.00653%).
- +$1,000,000 profit (0.000540% chance): Comparable to being killed by a meteorite impact (0.0004%).
- +$10,000,000 profit (0.000132% chance): Similar to flipping a coin and getting the same side 20 times in a row.
Many individuals seek quick financial transformations inspired by overnight profit stories but end up losing. Instead of gambling on unproven tokens, investors should focus on assets like BTC, ETH, and SOL, which have a proven track record. These won’t turn $100 into millions overnight but will steadily grow wealth. Investing is for making money, not losing it. The sooner this truth is embraced, the sooner real wealth increases.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
