Over 60% of Pump.fun Meme Coins Traders Are Losing Money

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As an analyst with years of experience in the crypto market, I’ve seen my fair share of trends come and go. However, the phenomenon surrounding Pump.fun meme coins is one that stands out as particularly noteworthy – and not in a good way.

Approximately 9 out of 10 individuals who engaged in meme coin trading on Pump.fun ended up either losing their initial investment or realizing profits below $100. However, it’s often only the profitable trades that receive attention, fueling a sense of fear of missing out (FOMO).

A significant number of hypothetical assets generated through Pump.fun have amassed huge market values, yet a small percentage (less than 10%) of investors reaped the majority of these profits.

FOMO is Driving Pump.fun Meme Coins 

This afternoon, a 13-year-old boy made a token on Pump.fun during a live stream. To his amazement, the token immediately began to rise sharply in value. He swiftly cashed out all the tokens, earning himself a profit of $30,000. However, as news spread about this incident, the value of those tokens skyrocketed to almost $4 million.

Stories similar to this are sparking a sense of fear of missing out within the community, leading traders to invest heavily in these speculative meme coins, which often function as pump-and-dump tokens. Data from Dune reveals that only about 3% of traders managed to earn over $1,000 with such meme coins.

Indeed, it has been observed by cryptocurrency investigators that certain trades involving Pump.fun meme coins have led to substantial losses for investors who engaged in speculative buying.

In October, a specific trader purchased five distinct meme tokens shortly following a surge in their prices. Unfortunately, he incurred losses on every token, according to reports from Lookonchain.

According to a post on social media, Flavius Daniel, a well-known figure in the cryptocurrency world, appears to have suffered a substantial loss of approximately $1 million in meme coins. Yet, the broader cryptocurrency community seems hesitant to accept this claim without further verification.

In a moment of excessive ambition, I employed the highest level of borrowing. Now, all I have is $460… It seems finding employment might be necessary next. This was posted by Daniel on X (previously known as Twitter).

Despite the fact that most meme coins on Pump.fun haven’t generated profits for many traders, the platform itself has remained highly profitable. In fact, it’s been easy for people to quickly create their own meme coin through Pump.fun since its launch earlier this year.

The surge in speculative investing and the growing interest in Solana’s meme coins have predominantly boosted the platform. It appears that Pump.fun is gearing up for the release of its own native token, as well as a user-friendly trading terminal.

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2024-11-20 20:26