Data reveals that nearly all cryptocurrencies created on Solana’s memecoin creation tool, Pump.fun, never make it to launch, with a success rate of only 1.41%.
Points
- High failure rate of memecoins on Pump.fun.
- Success rate fluctuates between 1.21% and 2.56%.
- Insights from Dune Analytics and industry commentators.
- Implications for the memecoin market.
It turns out that almost all cryptocurrencies birthed on Solana’s memecoin creation tool, Pump.fun, never see the light of day. According to Dune Analytics data, the success rate of Pump.fun crypto tokens making it onto the Solana-based decentralized finance protocol Raydium is a mere 1.41%. This rate has fluctuated between 1.21% and 2.56% since May, with the all-time high reached on February 16.
“The ‘graduation rate’ of coins on Pump.fun （those that made it to $69k and got listed on a dex） is stagnant around 1.4%,” commented Cinneamhain Ventures partner Adam Cochran in an August 1 X post.
The Brutal Reality of Memecoin Creation
Cochran further pointed out that no new coins have “really cracked” the $20 million Fully Dilated Valuation （FDV） level—a measure of a cryptocurrency’s total value if all coins were in circulation. This reality check reveals the harsh conditions within the memecoin creation landscape.
“I didn’t realize how brutal the trenches actually were,” crypto commentator and web3 developer Bread added, noting that only 22,300 tokens out of the 1.58 million created actually made it onto Raydium.
Different Perspectives on Memecoin Success Rates
However, other commentators believe that the low success rate doesn’t reflect the overall memecoin market but instead indicates how easy Pump.fun makes it to create memecoins. “Pump fun didn’t ruin memecoins, it just pulled back the curtain on how the sausage is made and made it very easy to make the aforementioned sausage,” noted pseudonymous crypto commentator Bunjil.
###解説
- The data on Pump.fun’s high failure rate for memecoins highlights the challenges and volatility in the cryptocurrency creation space. This insight is crucial for investors and developers considering entering the memecoin market.
- The low success rate underscores the importance of thorough research and realistic expectations when creating or investing in memecoins. The ease of creation on platforms like Pump.fun does not necessarily translate to successful launches or long-term viability.
- Understanding the dynamics of the memecoin market, including the factors that contribute to the success or failure of new tokens, can help investors make more informed decisions. The commentary from industry experts provides valuable perspectives on the complexities and risks associated with memecoin creation.