Michaela Alvez
Traders on Pump.fun, the decentralized platform for launching Solana-based meme coins, have reportedly been struggled to see significant profits, with only 0.4% of wallets earning $10,000 or more so far.
Data from Dune analyst Adam Tehc revealed that out of the more than 13.4 million wallets on the platform, just 55,012 have generated profits of $10,000 or more. Additionally, only 294 wallets, or about 0.002% of the total, have profited more than $1 million.
In response to the data from Tehc and Dune, pseudonymous on-chain analyst Alon dismissed the findings as FUD (fear, uncertainty, and doubt), citing several issues with the analysis. On January 10, Alon took to X to offer clarifications, challenging the accuracy of the conclusions drawn.
“FIRST and foremost, buying coins after they have already bonded to Raydium is NOT included when calculating your [profit and loss],” Alon wrote. “Therefore, it’s likely that the true number of profitable and extremely profitable wallets is an order of magnitude LARGER than exhibited,” they added.
Moreover, Alon states that the analysis does not account for unrealized profits. Alon claimed that some of the most profitable wallets belong to traders who have maintained strong convictions in assets they acquired early on, which may not yet have been fully realized.
He also disputed Dune’s claim that a large portion of the platform’s over 13 million traders are experiencing negative profits. He argued that a closer look at the platform would reveal the claim is inaccurate, emphasizing that many of the wallets involved are non-human, such as bots and AI agents. These, he said, distort the data and do not reflect actual traders’ performance.
The analyst further noted that approximately 30% of wallets on Pump.fun have only placed a single sell order, suggesting these wallets are likely not human-controlled. This, they argued, could further distort the data.
Despite a decline in the overall market capitalization of memecoins in December, Pump.fun’s total revenue is approaching $400 million.
On January 2, the blockchain analytics platform Lookonchain reported that Pump.fun transferred over $300 million in SOL tokens to the crypto exchange Kraken. Additionally, the platform converted $41 million into USD Coin (USDC).
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
