Only 0.04% of crypto traders on Pump.fun are making $10,000 or more

The apparent success of many investors in the crypto market may hide the fact that most traders have losses. On Pump.fun, a meme token launchpad, only 0.4% of traders have a profit of more than $ 10,000, statistics according to recent data.

According to Adam Tehc, a Dune data analyst, out of the more than 13.4 million wallets on Pump.fun, only 54,724 wallets have made profits of $10,000 or more. However, only 294 have achieved the status of “crypto millionaires” by accumulating gains of more than $1 million—this is 0.002% of all wallets.

Tehc pointed out the difference between reality and perception, saying that “289 Pump.fun millionaires is very low and speaks to the gap between the timeline and reality.” This data does not include the revenues from the purchase of Pump.fun tokens after they are graduated from the platform, which happens when a token has a $100,000 market capitalization.

However, they do allow for token purchases that are made after graduation as long as the initial purchase was made before graduation. The data can also be impacted by bots. Pump.fun has identified a new group of bots known as “bump bots” that make small trades to generate interest in certain tokens.

Although the percentage of very profitable traders among the Pump.fun users remain low, but this figure has steadily increased. A year ago, only 70 wallets had become millionaires, while 11,936 wallets had earned $10,000 or more.

Tehc pointed out that the level of profitability is rising among more experienced traders. Pump.fun is a meme coin platform that was created in January 2024 and has become popular rather quickly. Currently, the platform supports the creation of more than 5.7 million tokens with a total revenue of approximately $392 million. A November report also showed that 88% of users trade meme coins through Pump.fun either lost money or made less than $100 in profits.

Pump.fun has continued its dominance in the Solana network, performing about 70% of all transactions at the beginning of the year. This spike is the highest level of activity on the platform since November. Since its launch in early 2024, Pump.fun has had great success with Solana meme coins like PNUT, GOAT, and FARTCOINs.

As Cryptopolitan reported, Pump.fun is popular among teenagers and young adults, with 64% of website users being under 34. The platform attracts its audience by combining financial and investment content with news and current events.

Controversies and Regulatory Scrutiny

However, not all has been rosy for Pump.fun as it has been experiencing a meteoritic rise and fall at the same time. The platform quicky turned into a playground for high-risk traders, who used any means necessary to promote tokens. In 2024, a new trend of livestream stunt occurred, during which cases of animal cruelty and fake suicide took place. All these actions led the platform to suspend its live-streaming service.

Shortly after, the UK-based Financial Conduct Authority (FCA) issued a notice that advised the public against Pump.fun due to the risks it posed. In response, the platform banned UK-based traders from participating in the platform due to the bans.

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