PumpFun Earns Millions While 81% of Its Memecoins Have Lost 90% of Value

WHY IT MATTERS

Think of PumpFun like a flea market that rents out booth space to vendors. The flea market makes money from booth rental fees no matter what happens to the vendors' businesses. Similarly, PumpFun earns fees every time someone creates or trades a memecoin on its platform, regardless of whether that token goes up or down in value. Memecoins are cryptocurrencies created around jokes or trends — they usually have no technical purpose beyond speculation. The fact that 81% of these tokens have lost 90% or more of their value means that the vast majority of people who bought them likely lost most of what they put in, while the platform itself continued to collect fees. This illustrates an important concept for newcomers: in crypto, the platforms and infrastructure providers often carry far less risk than the people trading on them.