Only 0.76% of pump.fun wallets made $1,000 or more: CN research

In 2024, the Solana blockchain skilled a fast growth within the memecoin market, with pump.enjoyable being on the forefront. The platform captured a large viewers looking for fast earnings. Crypto.information carried out an in-depth evaluation of the profitability of investing in pump.enjoyable tokens, revealing that whereas a number of early adopters managed to safe earnings, nearly all of buyers finally misplaced cash.

Pump.enjoyable is the chief in Solana’s memecoin ecosystem and holds 50% of the market share. It achieved this by streamlining token launches and making them each fast and straightforward. It additionally centered on making certain a good course of for creating and buying and selling tokens, avoiding issues like presales or workforce allocations.

Pump.enjoyable operates as follows:

• Customers decide a meme coin they like.
• They purchase the coin by a bonding curve.
• They will promote the coin anytime to both safe a revenue or minimize a loss.
• If the token’s market cap hits $69,000, $12,000 of liquidity is locked into Raydium, a decentralized change on Solana, after which burned.

Utilizing numerous queries and scripts impressed by Dune analysts @adam_tehc, @hashed_official, and @evelyn233, we developed our personal variations that allowed us to assemble knowledge for this text.

As a result of ease of use and the rise in reputation, round 300,000 tokens have been created on Solana every month since March 2024. Nonetheless, not all of those tokens even attain a market cap of $69,000. Over six months, 33,683 tokens made it to Raydium, whereas a complete of 1,883,578 tokens have been deployed on pump.enjoyable. This leads to a commencement success price of just one.79%.

The statistics for buyers on the pump.enjoyable platform paints a fair grimmer image. Out of 29,601,462 whole wallets concerned, a majority skilled detrimental outcomes:

• 17,725,908 wallets (59.9%) recorded detrimental Revenue and Loss (PNL). 89% of these wallets realized losses, locking of their detrimental returns by promoting at a loss.
• However, 11,126,772 wallets (37.6%) reported constructive PNL, with 98% of those realizing precise beneficial properties.

The distribution of earnings additional reveals the low likelihood of profitable by memecoin investments. To supply a clearer image of the possibilities related to totally different revenue ranges on pump.enjoyable, listed below are some sensible comparisons:

• +$100 revenue (6.47% likelihood): Much less seemingly than being accepted into Harvard as an early applicant (7.8% in 2021).
• +$1,000 revenue (0.76% likelihood): Just like the likelihood of getting twins, which is round 0.4%.
• +$10,000 revenue (0.046% likelihood): Much less seemingly than changing into a NASA astronaut (0.055%).
• +$100,000 revenue (0.0033% likelihood): Much less seemingly than being struck by lightning in a lifetime (about 0.00653%).
• +$1,000,000 revenue (0.000540% likelihood): Akin to the possibility of being killed by a meteorite impression (roughly 0.0004%).
• +$10,000,000 revenue (0.000132% likelihood): Just like the percentages of flipping a coin and getting the identical facet 20 instances in a row.

Many people are trying to find a fast approach to remodel their monetary conditions, impressed by tales of random folks making enormous earnings in a single day. Sadly, the cruel actuality is that the majority will lose, typically catastrophically. As a substitute of playing on unproven tokens, buyers ought to deal with belongings like BTC, ETH, and SOL — belongings with a confirmed observe report. These gained’t flip $100 into 1,000,000 tomorrow, however they are going to develop a person’s wealth steadily and sustainably. On the finish of the day, investing is for creating wealth and never shedding. The earlier one abandons the dream of on the spot riches and embraces this reality, the earlier they’ll begin making choices that actually improve their web value. The rest is a reckless path to monetary wreck.