Nearly 90% of users who traded meme coins launched from Pump.fun have either lost their investment or made less than $100 in profits. Despite these facts, only the successful trades gain the spotlight and create FOMO.
Several speculative tokens created via Pump.fun have accumulated millions in market cap, but the profits were wracked up by less than 10% of investors.
FOMO is Driving Pump.fun Meme Coins
Earlier today, a 13-year-old created a token on Pump.fun, while live streaming. Much to his surprise, the token quickly surged, and he quickly liquidated all the tokens for a $30,000 profit. However, as the story went viral, those tokens surged in value to nearly $4 million.
Stories like this are driving FOMO within the community, and traders are pouring their investments into these speculative meme coins – which end up being pump-and-dump tokens. Data from Dune shows that less than 3% of traders made over $1,000 profit with such meme coins.
In fact, on-chain analysts have noted several transactions where Pump.fun meme coins traders have made significant losses due to speculative investments.
Back in October, one particular trader bought five different meme coins hours after their price spiked. He ended up losing money on each token, as reported by Lookonchain.
Another crypto influencer ‘Flavius Daniel’ lost nearly $1 million in meme coins, according to his social media post. However, the crypto community is skeptical about his statement.
“Greed kicked in and I used only max leverage. left with 460 bucks …I think it’s time to search for a job,” Daniel wrote on X (formerly Twitter)
Regardless, most Pump.fun meme coins have returned zero profits for the bulk of traders. The platform itself remains significantly profitable. Pump.fun launched earlier this year, allowing anyone to create a meme coin in minutes.
Increased speculative trading and the popularity of Solana meme coins have largely benefited the platform. Recent reports suggest that Pump.fun is preparing to launch its own native token and a pro-trading terminal.
The post Over 60% of Pump.fun Meme Coins Traders Are Losing Money appeared first on BeInCrypto.
