Iggy’s launch her own On Pump.fun there are over one million other tokens. But this could be bad news for investors… and the market overall.
The manic world is not without its charms. cryptoA new project that can take over the world in a matter of days.
Let’s look at Pump.fun for our latest exhibition. This allows you to make your own pump. own memecoin.
It launched back in January of this year — and figures from DefiLlama suggest the website’s already on track to make $265 million in revenue a year. $265 million!
Pump.fun regularly earns over $500,000 per day and, during periods of high market activity, this can increase to more than $1 million. The project was launched on July 2. flips ETH in 24-hour revenue: $1.99 m. v $1.95 m.
Dune Analytics shows the company was behind over 1,16 million launches. tokens On the Solana blockchain So far, so good
How does Pump.fun work? workWhat’s the secret to its success, and can it be sustained?
The Memecoin for the Masses
Since many years, it has been common for novelty tokens to appear in the wake of viral events.
In 2022, altcoins were created quickly after Will Smith hit Chris Rock during the Oscars.
The imaginatively named Will Smith Inu skyrocketed in value mere hours after the ceremony concluded — but like a flash in the pan, lost a large chunk of its market cap just as quickly.
Pump.fun simplifies this complex process to a matter of a few mouse clicks.
It is explained in an elegant manner on the website:
Lightning strikes
Even spending five minutes on Pump.fun is enough to give you a headache — with newly minted tokens bursting onto the page in a shaking yellow box.
It’s not surprising that many seem to focus on cat pictures, since it’s an online site.
Iggy Azalea’s appearance at the Grammy Awards was an important milestone for Iggy and her startup. launched The Australian rapper MOTHER aggressively promotes the song to her 7,7 million fans.
One week later, in early June, the memecoin had surged to a dizzying market capitalization of $200 million — further feeding the frenzy.
CoinGecko’s data has shown that latecomers often pay the price. Since then, prices have fallen about 75% compared to their previous highs. MOTHER is now valued at $58.8M.
This brings us to the darker side of Pump.fun.
Celebrities who have diehard fans next Crypto is a complex field and those who don’t know much about it can make speculative investment they regret.
There can also be pretty severe consequences for the stars themselves — something that Azalea’s either unaware of, or pretty willing to ignore.
Kim Kardashian After endorsing crypto, he was fined $1.26m and banned from talking about it on social media. EthereumMax She did not reveal that she had been paid.
You can also use the Securities and Exchange Commission’s If it’s willing to slam the door on someone for posting about a digital item, what will happen if they launch a product with a celebrity? own?
Pump.fun is not without incidents, even though it has safeguards in place to prevent rug pulling.
A man, who was a former employee of the U.S. work The protocol was detained in LondonAmid allegations he exploited this project to the tune of almost $2 million, he has denied these claims.
Jarett Dun has now been granted bail and should appear at court on August.
Is Pump.fun sustainable?
Memecoins are in the midst of a massive bubble.
Isn’t this almost like the same thing happening again? Just three years ago we were facing the chaos of non-fungible tokens selling for $69.3 million. The value of the investment was vanishing before the buyers’ eyes. Meanwhile, the creators were laughing to their bank accounts.
It is also important to consider whether the current bull run on the crypto market will continue. Such greed and wild speculation has often served as a harbinger for the good times to end — and as we’ve seen, there’s a lot of that right now.
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Source: crypto.news