Decline in Revenue: Pump.Fun’s Struggle
Solana-based memecoin launchpad Pump.Fun saw a significant 33% decrease in revenue this week, dropping from $5 million to $3.6 million in just one day after disabling its live-streaming feature, according to DefiLlama data. This marks the platform’s most substantial single-day decline since March.
Growing Criticism and Controversies
The platform faced criticism earlier this month when a middle-schooler reportedly profited $30,000 in a rug pull, triggering backlash. The situation escalated on Nov. 28 when a user staged a fake suicide during a live stream to promote their memecoin, leading Pump.Fun to shut down live streaming capabilities. This move resulted in decreased user activity and earnings for the platform.
Pump.Fun, which has accumulated around $230 million in revenue since its launch in January, remains a controversial player in the memecoin space. Despite its initial success, recent controversies have overshadowed its rapid growth, with analysts warning of potential lasting effects driven by negative sentiment and user fatigue.
Risks and Concerns in Memecoins
These recent events have reignited concerns regarding the risks within the unregulated memecoin market, which often lacks protective measures against predatory practices and harmful content. Pump.Fun’s live-streaming feature, once a key attraction for its viral potential, has now become a vulnerability, impacting both its popularity and security.
As Pump.Fun navigates its image crisis, competitors on platforms like Base are positioned to benefit from the shifting landscape. The future of Pump.Fun in the crypto world remains uncertain, emphasizing the high stakes in the competition to dominate the memecoin market.
