Meme Coin Traders Hate the Flood of Tokens on Pump.fun – Decrypt

Donald Trump and Elon Musk had a conversation on Twitter. Pump Fun OlympicsWithin three hours, 10,000 tokens had been minted by the Meme Coin Factory. But Degen wasn’t satisfied.

“How is this a good thing?” Tyler Stockfield (commonly known as Anonymous) wrote Twitter“Nobody is having fun anymore except the Pump Fun team who are making the commission.”

Pump.fun is a token launchpad that gained popularity because it allows anyone to create coins in minutes with a small fee. Recently, the protocol has eliminated the need to pay fees to launch a token, instead offering small payouts to users who successfully deploy their tokens.

As a result, over 23,000 tokens were issued in the past 24 hours, a record high. Commission $5 millionThis is double the previous record high of $2.3 million. Dune DashboardOnly 250 tokens graduated from the platform during yesterday’s surge.

The way Pump.fun tokens work is that they will be listed on the popular Solana DEX Raydium if their market cap reaches $69,000, which is just 1% of the success rate of token issuances on Pump.fun.

This low hit rate has frustrated meme coin traders, who believe the protocol is saturating the market, increasing the number of scams and rug-pulling.

“The game has certainly changed, but it has also obscured bad actors and overly incentivized them,” posted anonymous trader LitBro. Twitter.

As Alon, creator of Pump.fun, explained, the barrier to creating coins has been significantly lowered. He explains Now, token issuance takes one minute instead of 60 and costs $2 instead of $2,000, but this lowered barrier has also reduced the incentive for meme coin developers to push their projects forward.

“My issue isn’t necessarily what Pump Fun is (a launchpad for tokens), but the fact that they aren’t trying harder to fight scammers,” posted anonymous trader Bizzy. Twitter“Why don’t we require authentication when adding a Twitter account? Why don’t we have better filtering options to help us identify and avoid scams?”

Pump.fun has implemented several updates aimed at protecting its users: in May, the protocol integrated an on-chain visualizer. Bubble Map It helps users research who holds the token supply. More recently, Pump.fun has attempted to reduce rug pull by offering to pay 0.5 SOL ($79) to distributors of successful meme coins.

Pump.fun did not immediately respond. DecryptionRequest for comments.

Editor: Stacey Elliott.