Pump.fun Crash: Memecoin Traders In Crisis After Explosive Scandals And Massive Losses

Since the LIBRAgate, traders have become wary of tokens that seem promising but are in reality just illusions. Memecoins are part of this, and after the scandals that shook investor confidence, no one wants to be carried away by false promises anymore. However, despite the fallout, some players in the crypto market are persevering and hitting the accelerator, as demonstrated by the example of Pump.fun.

Pump.fun: from promise to disappointment

The Pump.fun platform, a central player in the memecoin universe, recently experienced a dramatic drop of more than 80% from its January peaks. This reflects a dramatic market evolution of memecoins, which has seen its initial enthusiasm clash with a much less rosy reality.

According to data from Dune Analytics, the daily number of tokens that complete the “bonding curve”, an essential process to be listed on a decentralized platform, has dropped from almost 1,200 in January to only 200 by the end of February. An impressive plunge representing a growing disinterest in this type of crypto asset.

But that’s not all: in January, more than 70,000 tokens had been launched on the platform, compared to barely 25,000 by the end of February. This spectacular drop reflects the distrust of traders following a series of crypto scandals that exposed market manipulations of memecoins.

For example, the launch of Libra, a memecoin associated with Argentina, saw its market capitalization wiped out in a matter of hours, contributing to a loss of $4.4 billion.

Despite this, Pump.fun remains a key platform in the world of memecoins, and its drop does not mark the end of the story of absurd tokens. The question arises: are these players truly victims or beneficiaries of a system that generates profits as rapidly as it generates losses?

Pump.fun and the fluctuations of the memecoin market

The drop of Pump.fun is just a symptom of a much larger phenomenon affecting the entire memecoin market. To understand this decline, it is necessary to revisit the rapid emergence of these digital assets, primarily fueled by a mix of FOMO (Fear Of Missing Out) and insider manipulation.

It all started with the power surge of Solana, which saw its Total Value Locked (TVL) explode from $1.4 billion to over $9 billion in 2024, mainly due to speculation around memecoins. This frenzied growth attracted many traders looking for the next big hit. But quickly, promises collided with the reality of unscrupulous practices that govern a part of these assets.

• In January, millions were invested in tokens like TRUMP, marking the arrival of what is called the “insider game”;
• The launch of Libra allowed major players to take their profits quickly before the cryptocurrency’s drop wiped out $4.4 billion in a matter of hours;
• Losses were colossal, and in February, about $2 billion were wiped from traders’ wallets on Official Trump.

The memecoin game has turned into a hunt for quick profits, but also an arena where the manipulation of information and early movers dictates success.

But what about the average crypto trader who still believes in the illusion of being “early”? Is he doomed to lose every time? Or is there still a place for those who believe in the promises of decentralized cryptos?

The crypto market: the impact of scandals on speculation

While memecoins have taken a prominent place in the crypto market in recent months, the tide has turned after successive scandals. In 2024, the crypto market seemed indestructible, with cryptocurrencies like Solana’s SOL on the rise. However, the arrival of scandals such as the rapid devaluation of Libra or blatant manipulations on platforms like Pump.fun had a devastating effect on investor confidence.

Despite being in good shape, the crypto market has seen thousands of traders flee following launches that were as rapid as they were fleeting. The allure of memecoins, driven by a logic of swift gains, was quickly eclipsed by the onset of scandals that unveiled the opaque mechanics of the market.

After all, who can still believe that tokens like Dogwifhat or Fartcoin, perfect examples of the absurd, are viable investments?

But despite this slowdown, the allure of digital assets has not completely disappeared. The promise of quick gains remains a powerful engine. The market continues to see new players emerge and platforms like PumpRush.fun launch their versions of “decentralized trading” for memecoins, proving that appetites for this type of market are not entirely fading.

• Insiders are never far away and continue to manipulate trends, as shown by the huge drop of Libra;
• Solana, despite the scandals, remains a favored playground for speculation on decentralized tokens.

So, the question is legitimate: after such a shipwreck, what future for the crypto market? Can memecoins still hope to bounce back, or should we look towards another type of more stable digital asset?

No matter the waning winds of memecoins, some players in the crypto world continue to believe in this market. As evidenced by the recent launch of version 1 of the PumpRush.fun platform, dedicated to memecoin trading, opportunities continue to attract traders, despite the risks.